Epic : CDN

Web Site : http://www.caledonresources.com

Broker Note 1st Aug 2007 : http://www.caledonresources.com/Images/FileManager/192.pdf


About Caledon: Caledon is quoted on the London AIM market (Ticker: CDN). In 2006, the Company acquired two Australian coal projects; the Cook mine and the Minyango coal project, both situated in the Bowen Basin, Queensland. The Cook mine is host to a mineable reserve of 17 Mt of coking and thermal coal with a 10 year mine plan. On 21 March 2007, Caledon announced commencement of production at the Cook mine with targeted output to reach a 100,000 tonnes per month rate by the end of 2007 and 1.5 million tonnes per annum in 2008. On 14 March 2007, the neighbouring Minyango project resource was brought to a JORC standard of 240 million tonnes which was an increase of 17% on original estimates. Caledons aim is to develop the Minyango project to potentially increase the Companys production in the near-term to accompany its already producing Cook mine project.

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Caledon Resources PLC Interview With:
Mark Trevan Managing Director

Dated September 20, 2007

http://www.wallstreetreporter.com/page.php?page=featured&id=26736

Just as note of caution with CDN, it looks like it is going to be removed from the list of ISA stocks. If that happens, your broker will remove your holding from your ISA account and put it into your dealing account, with the result that any profit becomes taxable and also that amount of your annual allowance for an ISA account is lost.

"The Directors of Caledon note the recent increase in the Company's share price. Since the termination of discussions with Polo Resources Limited on 24 June 2010 the Board has received a number of unsolicited and indicative enquiries from third parties in respect of possible alternative transactions, one of which relates to an indicative offer for the Company. These enquiries are at a very early stage and there is no certainty that an offer for the Company will be forthcoming."

spot on, well leaked. Vol gave it away for one.Try CAD now that another cert.

Well done berty. Good call.

Caledon Resources rejects offer at 68p/share.
http://uk.reuters.com/article/idUKLDE66M1JR20100723

"On 15 July 2010, the Company announced that it had received a number of unsolicited and indicative enquiries from third parties in respect of possible alternative transactions to that terminated with Polo Resources Limited on 24 June 2010. One of these enquiries related to an indicative offer for the Company at 68 pence per share.

As stated at that time, the enquiries were at a very early stage with no certainty that an offer for the Company would be forthcoming and Caledon has since been advised that the indicative offer has been withdrawn. Accordingly, Caledon is no longer in an offer period pursuant to the Takeover Code."

"Caledon notes the recent rise in the Company's share price. Following the announcement on 16 August 2010 confirming the end of the last Offer Period, the Company has received a further indicative approach and confirms it is in preliminary discussions which may or may not lead to an offer for the issued and to be issued share capital of Caledon.

There is no certainty that an offer will be forthcoming.

Shareholders are advised to take no action at this time. Any further announcement will be made as appropriate."

StockMarketWire.com
Australian coking coal producer Caledon Resources said raw coal production and saleable product yield rose progressively during the quarter to end-September.

The degree to which the increase in coking coal production exceeded the increase in ROM production reflects an improvement of 4% in recovery and 2% in the product split between coking and thermal coal.

The negative variance in thermal coal sales for the quarter versus the same period in 2009 was a result of sales from stocks in the 2009 quarter.

On 31st August 2010 the Company announced that it was targeting a minimum production rate of 700kt of saleable coal per annum (ie. greater than 58kt saleable per month) from September and this was achieved in September. Given that the balance in production between primary and secondary extraction has now been re-established this is seen as a sustainable minimum production rate going forward.

Management has decided to implement a significant upgrade to coal haulage and power infrastructure over the Christmas period in order to improve reliability and achieve consistent production performance. This will require cessation of mining operations for two weeks and as a result the 58kt per month rate will not be sustained for December and the coal sales target for 2010 is now in the range 550kt to 570kt.

Further to the announcement of 17th September 2010 the Company confirms that it remains in discussions regarding an indicative approach which may or may not lead to an offer for the issued and to be issued share capital of Caledon. Any further announcement will be made as appropriate.

Broker note from Collins Stewart:
"Caledon has announced that an in-principle agreement has been reached with Guangdong Rising Asset Management (GRAM) for the acquisition of Caledon in an all-cash offer at 112p. The acquisition is to be through Bidco, a wholly owned subsidiary of GRAM, which itself is stated to be one of the largest state-owned enterprises in China supervised by the Assets Supervision and Administration Commission of Guangdong Provincial Peoples Government. The offer vales the entire share capital of Caledon at 252m, representing a premium of 34% to Fridays close and a 53% premium to the 20 day VWAP. The Caledon Directors are stated to be supportive of the Possible Acquisition

The pre-conditions for the GRAM to progress to a firm offer under Rule 2.5 of the city code are (1) for the board to unanimously recommend the offer, (2) the receipt of all regulatory approvals in China (including project approval for the outbound investment from a number of state departments) and the finalisation of the financing terms. GRAM expects to be in a position to satisfy or waive these pre-conditions no later than the 31 December 2010. This is obviously very positive and long awaited news for Caledon.

While not yet a firm offer, we expect the share price will move by 25-30% to within 5% of the proposed cash offer at 112p, although we expect some investors will be cautious given the outcome of the last proposed cash offer (with Polo). The potential acquisition by GRAM may provide good relief for some long suffering supportive shareholders of the group while the price endorses our long held belief in the value of the companys resources and recent infrastructure win."

Further Re: Possible Acquisition of Caledon by Guangdong Rising (Australia) Pty Ltd
Further to the announcement of 8 November 2010 where the Company advised that it had reached an in principle agreement with Guangdong Rising Assets Management Co., Ltd (GRAM) on the terms of a possible acquisition of Caledon by Guangdong Rising (Australia) Pty Ltd, a wholly owned subsidiary of GRAM, Caledon confirms that that it had received advice from GRAM at that time that GRAM had:

completed due diligence; and

received advice from the Australian Government's Foreign Investment Review Board that it had no objections to the potential transaction.

Just taken a position in these,with todays news of increase of 256% in Minyango's resources,it should help cement the bid? With a premium of 34% tothea SP of 83.75p
giving a price of 112.2p,something like 10% expected to be completed by 31st Dec,then
a reasonable ganble and less than 3 weeks to go?
cyril