http://clients.westminster-digital.co.uk/minesite/microsite/events/50/video/index.aspx?companyId=50_1
=">http://www.proactiveinvestors.co.uk/pdf/brr.pdf
http://www.mineweb.com/mineweb/view/mineweb/en/page35?oid=39359&sn=Detail
www.braemoreresources.com
http://www.investegate.co.uk/Article.aspx?id=200711010702217873G



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http://www.proactiveinvestors.co.uk/articles/art.php?BRR2
cyril

Braemore may have Finnish suitor
Brendan Ryan | Wed, 17 Jun 2009 12:12
[miningmx.com] -- PLATINUM and nickel producer Braemore Resources is in talks which could lead to an offer being made for the company. Market sources reckon the buyer could be Finnish refining group Ruukki.

Braemore CEO Leon Coetzer was not immediately available for comment.

The company said in a statement released on Wednesday in response to recent volatility in the share price of the company that it confirmed Braemore was in discussions with a third party that may or may not lead to an offer being made for the company.

On Londons AIM market the Braemore share price dropped from about 7 pence in mid-May to about 4.45p before jumping to 5.95p on Tuesday. This earned it a speeding ticket from the stock exchange authorities, resulting in Wednesday's cautionary announcement.

Ruukkis strategy is to focus on end products with a high degree of refining. The group announced in 2008 it was looking at potential expansion into southern Africa because this area holds the largest chrome ore reserves in the world.

"Specialisation in other speciality metals and alloys is also a possibility.

Ruukki is in the process of buying Mogale Alloys for R2bn and made the first payment of R1.2bn at the end of May.

Mogale produces a range of alloys from its Krugersdorp plant including charge chrome, chromium-nickel alloy and silico-manganese. Mogales production is marketed through JSE-listed Metmar, which also owned an effective 11.8% shareholding in Mogale.

Braemore would appear to fit Ruukkis strategic business requirements because of the revolutionary ConRoast technology it has licensed from SA research institution Mintek for the treatment of platinum group metal (PGM) ores.

The particular attraction of the ConRoast process is that it can treat PGM ores with high concentrations of chrome.

The technology could be strategically vital for the SA platinum industrys future, which will have to source greater volumes of its production from the chrome-rich UG2 Reef instead of the Merensky Reef it has largely exploited until now.

High chrome levels pose a serious danger in the smelting process and have resulted in a number of furnace failures. The latest of these has just been reported by Lonmin.

Braemore has been successfully running a 3.2MW smelter at Minteks Randburg site and is now looking at commissioning an associated hydrometallurgical refining process.

This will separate PGMs from associated base metal byproducts such as copper and nickel to produce a high value PGM concentrate which can be sent for direct processing at PGM refineries.

Braemore also intends building a separate 5MW to 10MW ConRoast smelter, which it hopes to use as a lever to gain greater equity exposure to the platinum sector. So far it has signed up one customer, Jubilee Platinum , to use the technology.

Should Braemore be taken over, it will be the latest development in the ongoing consolidation of the SA platinum sector after Aquarius Platinums takeover of Ridge Mining.
cyril

Next question is 'what constitutes a good price' for BRR? Currently either the market thinks the offer is a white elephant or the company valuation is about right. Usually bid speculation would push the sp up to bid level or more.

Harry the $64m question, they need funds which weakens their position,also
Atomaer have the controling interest so i expect its a matter of whether they wish to sell and at what price? If they're not willing to support BRR then a lowerr SP,for
me at least 6p but hoping for double digets, but what the hell do i know?
cyril

Thanks for that info in 769 Cyril - very useful, and makes sense. 6p would be ok but 10p would be a lot better!

Fair to say that the market is underwhelmed by the news. Makes me suspect that they think the offer is going to be an all share offer rather than a cash settlement. Still no indication who the bidder might be but presumably they think that BRR is going reasonably cheaply.

Harry; if they pitch the offer to low BHP could come in with an offer,the Leinster
tailings processed using BRR's knowhow would imv make it a very attractive
acquisition.
All will be revealed in the near future.
cyril

RNS today:

BRR strengthens ConRoast technology position

A good move on managements part,will make it more attractive, theirfore making a cheap takeout less likely?
aiho
cyril

Have you got a hangover, Cyril???

lol
cyril

cyril we agree with you comments, the question is will the likes of BHP pay a large price for the con roast proven technology to gain exclusive ownership?

Somebody on the JLP thread suggests Jubilee Plat may be the predator.

Harry quite possibly as a result of signing the production agreement last month, although another party may have decided to step in to secure an exclusive position.

Rumour of the day

Ruukki, the Finnish group that wants to consolidate South Africas stricken platinum industry, is believed to have walked away from a deal with Braemore Resources down p to 4.6p. In turn, Braemore Resources has gone straight to Jubilee Platinum down 1p at 45p with an all-shares offer expected to be announced imminently.
http://business.timesonline.co.uk/tol/business/markets/article6627349.ece
cyril

That's what I was afraid of, All share offer. Have to consider whether it's better to take cash now or wait for the offer to be made. Presumably JLP can now call the tune, which may not be good for BRR holders.

"JOINT ANNOUNCEMENT OF A FIRM INTENTION BY JUBILEE TO MAKE AN OFFER TO ACQUIRE THE ENTIRE ISSUED AND TO BE ISSUED SHARE CAPITAL OF BRAEMORE AND WITHDRAWAL OF BRAEMORE CAUTIONARY ANNOUNCEMENT

Further to the Braemore and Jubilee cautionary announcements on 16 June 2009 and 29 June 2009 respectively, Jubilee wishes to announce its firm intention to make an offer to acquire the entire issued and to be issued share capital of Braemore (the 'Offer') (the 'Offer Shares')."

Hmm - I should have taken Cynic's advice and 'locked in' profits sooner, instead of being greedy and hoping for more. I just hope I live long enough to learn . . .

Depends if you are happy acquiring JLP shares, which, in the long term, may be a good thing, imo.

Business Financial Newswire
"Jubilee Platinum is to make an agreed takeover offer to Braemore Resources which involves the issue of 1 new Jubilee share for every 15.818 Braemore shares.

The offer consideration is at a discount to the current market price but in addition Jubilee has undertaken to fund the operating costs of Braemore whilst the Scheme is being implemented (up to a cumulative maximum of R7 million on a drawdown basis) and to settle some of Braemore's current liabilities (up to a cumulative maximum of R25 million on a drawdown basis).

Furthermore, Jubilee recognises that Braemore also has an outstanding commitment of approximately R18 million payable to Mintek by 30 September 2009, which amount will be paid by Jubilee on behalf of Braemore, subject to fund raising of not less than ZAR 50m.

These amounts will be repayable by Braemore if the Offer does not proceed. A 1% compensation fee will be payable by Braemore to Jubilee if the Offer does not proceed for reasons relating to Braemore. Similarly, a 1% compensation fee will be payable by Jubilee to Braemore if the Offer does not proceed for reasons relating to Jubilee.

As part of the Scheme, the existing 305m Braemore performance shares of 0.1p each will be cancelled at zero consideration if the Scheme becomes effective. "

By my calculations it is better at the moment to buy JLP....because BRR to buy 3.25 times 15.818 makes just over 51p.....this means BRR sp must drop more or JLP has to rebound !.

3.5 to buy times 15.818 makes 55.36.....crazy to buy BRR at the moment with JLP at 42p to buy...BRR's sp must drop !.