LONDON (AFX) - Chaco Resources PLC said it is proposing the reverse takeover
of two Paraguayan companies -- Amerisur SA and Bohemia SA -- from Candey SA and
Daniel Sztern in exchange for 27,322,404 new ordinary shares in the company.
It also plans to raise up to 750,000 stg before expenses in a placing of
36,585,365 new ordinary shares.
The company's shares were suspended on Sept 3 and it said it expects this to
be lifted today. It has called an EGM for Nov 15 to approve the acquisition and
placing plans.
Amerisur holds two oil and gas prospecting permits in Paraguay and is the
registered applicant for exploration and exploitation concession contracts over
the same permit areas. Bohemia holds registered applications for an oil and gas
prospecting permit in Paraguay and for an exploration and exploitation
concession contract over the same area.
The exploration areas covered by these three applications comprise a total of
approximately 48,000 square kilometres of the Curypayty and Parana Basins.
Chaco said these basins extend respectively into Bolivia and Brazil, where
commercial oil and gas production has been established for many years from
similar geological sections.

At least the sp is holding

Back from brief hols. and interested to see all the posts. I agree that the placing at 6p probably encouraged the company to only go for what they knew that they needed now. I was told that the speed with which they expect revenue to flow from Deal 1 should fund the rest but if more funds are required then at least the sp should start climbing. It's time that some of the tip sheets picked up on CHP.

As for the current SA conference and anti USA protests it will be some comfort that in Colombia the markets for the oil from Alea can be as easily focussed to the east or west so CHP are in a good position.

Could I recruit one of you knowlegeable folk out there (or more) to fill in a bit of history for me, please. In December 2000 I bought 3500 shares in Gold Mines of Sardinia (cost 455) for my grand-daughter for her 18th birthday. Principally as a bit of fun out of which she could make a few quid if it went well, but if it didn't she wasn't losing any of her own money.
At the time I was getting regular reports from Williams de Broe on a variety of financial matters and, as they seemed to be agents for GMS, regular updates on what was happening in the company. What struck me most was that there was plenty of cash in the company, which reassured me. WdeB regularly marked them up as a buy.
My son-in-law's over-seeing of the investment has been patchy and I don't think he has kept all the correspondence. All I know now is that Chaco seems to be the controlling company, though wasn't there another company (Fedoro or something like that) between the two? I don't get reports from WdeB any more so my ability to keep tabs on what's going on is virtually zero now. There is the net but that, I find, is too complex for my limited capabilities in such matters (I am not a professional!).
Though I suppose I could get more info via Moodies or Extel at the library (if they still provide the service) I would be grateful if one of you could tell me (with the facilities available to you) the number of shares my grand-daughter should have today. I am pretty sure no additional cash has been shelled out for rights issues etc. I do suspect that the original 455 may look a bit sick today and I'm surprised that things went downhill from a cash-rich base.
Sincere thanks in advance.

schiff

I only been in and out of Chaco a few times for the last year, but was not aware went they split the shares into two companies.

You shoul have received a new share in Medoro for every 7.0844 shares in Gold Mines Of Sardinia that means 494 shares on Medoro plus the 3500 in Chaco as they change the name.

But I managed to find out this for you I hope it helps........

From Minesite.com on 6 March 04........

Few Investors Understand How Medoro Resources Was Formed Out Of Gold Mines Of Sardinia, But It Is An Interesting Story.

Confusion was the order of the day at Gold Mines of Sardinia on Tuesday of this week as pointed out in the Daily Stockmarket Report from UK-Analyst.com. A company called Medoro Resources, started trading on AIM. Few people seemed to know anything about it. In fact it is the company into which GMS has divested all its assets. In a series of deals which had gone over the heads of most shareholders in the UK a new share in Medoro had been received for every 7.0844 shares in Gold Mines Of Sardinia.. However in good old fashioned GMS tradition an announcement about this was only made on the London Stock Exchange RNS service and no effort was made to distribute it to commentators or shareholders. In fact it is fair to say that one of the main faults of the old company was its feeble efforts at promotion which were compounded by it being managed from Australia and never achieving its promises of moving office to London.

Gold Mines of Sardinia remains as an AIM shell with a tiny amount of cash in the kitty, but no other assets. Presumably the hope is that someone will want to make use of it , but the advice to investors has to be dont bet the bank on it. Until that someone appears it is basically worth nothing. As GMS had closed trading on Monday at 9.25p it would have been reasonable to expect Medoro to open on Tuesday at around 65p (9.25 x 7.0844), but not a bit of it. According to UK-Analyst, a lot of investors seem to have misunderstood the situation and seeing GMS at 1p thought it was the bargain of a lifetime and frantically bid it up to 2.5p.Meanwhile Medoro languished at 35p. By the close normality was half restored with Gold Mines at 1.75p and Medoro at 40p.

It is hardly surprising that investors were bemused. The turns and twists in the fortunes of Gold Mines of Sardinia are complex and the only way to understand them is to go back into history. As a kicking off point lets go back to the summer of 2001 when the company at our 2nd Minesite Mining Forum spoke about its discovery of a major epithermal gold discovery in the older Palaeozoic rock on the eastern side of the island at Monte Ollasteddu.. At the time the company had exploration rights over the whole island of Sardinia with a small mine at Furtei in the south producing around 25,000 ozs of gold a year. Homestake Mining also had a joint venture with GMS which gave it the right to take an interest in up to 20% of GMSs licence area, excluding Furtei and Osilo which was another potential mine in the north.

Long story short, Barrick took over Homestake and decided it was not interested in Sardinia probably didnt know where it was. Then post-September 11th 2001 drilling operations were put on hold in the east of the island as it was close to an Italian military aerodrome. This discovery caused so much excitement that the company took its eye off the ball as far as Furtei was concerned and virtually went to sleep while it waited for permission to drill. Then along came a Canadian listed company at the beginning of 2003 called Canley Developments which had come to the conclusion that Furtei was the best thing since cut bread. It was the 10 sq kms of property surrounding the mine which was of special interest to Canley as it had more than 13 high priority targets, identified by a close spaced micro gravity and a recent SP survey within a 5 kilometre area, three of which had been tested by limited drilling. All were close to surface and open to depth so Canley now renamed Sargold concluded that there was potential to increase the resource at depth and around the existing pits.

The next bit of news last autumn was that the Bolivar Gold had decided to take the opportunity relinquished by Barrick at Monte Ollasteddu. This was very significant as . the problem that has dogged Gold Mines of Sardinia throughout its time on the island has been its lack of political nous. The boss of Bolivar, Serafino Iacono, is an Italian so understands the nuances of political life on the island and in Italy. He also has a good record for making money in Totonto and, even more important, his company has Gold Fields as a 21 per cent shareholder. When the shareholders of Bolivar indicated that they wanted the company to concentrate on its operations in South America he handed the Monte Ollesteddu joint venture on to Gold Fields.

By that time, however, he had become convinced of the potential of Sardinia, but felt that GMS, as a company, had become its own worst enemy there. A plan was therefore devised whereby all the GMS assets including the joint ventures were hiked off into a Canadian listed company called Full Riches Investments. At the same time a joint venture was signed with a company called Orogen, which is not a million miles removed from Gold Fields, whereby it would be granted options over all the rest of the GMS properties in Sardinia. Full Riches raised C$8 million in Canada and then became Medoro Resources a pretty uninspiring name, but it may mean something to Italians.

Medoro obtained a secondary listing on AIM and now has around C$10 million in the kitty; it is free carried on practically all exploration on the island for some time to come; and has plenty of Italian input at board level through Mr Serafino and Guiseppe Pozzo the chief executive.. The net result is that Medoro is now free to prospect, discover and explore new prospects elsewhere in Italy and throughout Europe with Gold Fields only a few steps behind. A priority must be to promote itself in both the UK and Canada so that the uncertainty reflected in the current share price is removed. It is not too late to change the name to something constructive and as an early step it is hoped that Iacono Serafino will speak at our 16th Minesite Mining Forum in May

schiff

And here is the chart not looking to healthy for MRL but much better for CHP for the last year

Master RSI - that is fantastic and I'm very grateful. The fact you did it on a Sunday too when you should be resting up makes it even better!
Understandably it all leaves me rather bemused but at least, from what you tell me, it left the pros similarly baffled.
From a position where I thought we had 494 shares in Chaco (worth 18) now it seems probable that there are still 3500 shares in Medoro in the equation. They are worth about 260 (via Ceefax) so the overall loss is quite big but not the utter disaster I previously thought. Nice way to end the weekend. Thanks again.

Fairly quiet at the moment ahead of news!

oo - a bit of upward movement

But not enough. This stock should be in double figures (12-14p) even on what has been confirmed so far.

schiff
Wrong way round, I think. 3500 Chaco (280), 494 Medoro (18) - just from reading Master RSI. Worth re-reading slowly. Chaco should do your grand-daughter OK, if my hopes are realised.
G'luck
sd

Have a look at EEL.

Agreed Sharesure, we should be at that level even without a speculative premium on the other deals.

WINS, WDBM, KBC, SCAP high bid.

MLSB and EVO sellers @ 8

Any thoughts on what is holding it back, agreed M P H should be in double figures, my calculations on ALEA alone put it @ 12p, Paraguay as before 4p and that's without any speculation on the outcome of the two applications.

Very frustrating and no logic at times in the market

CHP looks like it may have finished the correction of last Tuesday's 8.8p high. I managed to get in at 7.6p this morning and will stay long while above 6.9p.

lynnzal

Be interested to hear your logic on why 8.8p was overpriced, everyone is entitled to their opinion but have you read the recent RNS's and postings. The company is very undervalued, it actually has proven oil reserves and in addition applications due in Colombia and Paraguay.

I assume lynnzal used the word "correction" in a technical sense - a retracement, not a putting right of something that was wrong.

What's the hurry - since you all profess to be long-term holders. What else were you going to do with your money even if the price was 12p - sell? That's short-term in my book - which is what I'm in for.

Hi Stewart, I have not stated that 8.8p was overpriced, the market did that when it sold off down to 7.55p last Friday. However, I would suggest that the 32% gains over 3 days may have prompted a few of the short term players to take profit. I'd be interested to see the maths behind the 'undervalued' in terms of recoverable oil etc.

Stockdog, a correction/retracement can be "putting right of something that was wrong". Perhaps the market rallied too high too quickly? 30% over three days or 43% higher over 8 days....Rarely do these markets run in a straight line.
However you may want to look at it, the inference is that it is a 'blip' in the underlying trend (higher).

At the moment I am a short-term holder of this stock and wish I had bought in at lower levels, as I too may have taken profits (and maybe bought back in again).

Regards, Lynnzal

stewart3250,i hold lots of chaco shares too, but until the oil is out of the ground and in the barrels and being transported out of a particular location i don`t think the price will rocket. Like stanelco a lot of patience will be required,but once the oil starts flowing then so will the shareprice.

Pisces, Stewart is right in his calculation of the value of the oil in the ground; when it is at the wellhead it becomes worth much more ($35/barrel cf $5/barrel) I think that the lag in the price at the moment has more to do with the need for the mgt to re-establish a reputation for delivering the goods after the GMS history (not actually their fault, more the fault of Italian bureaucracy and the rest!).
I would bet on an announcement this week on the other two Colombian wells and possibly the 3rd Paraguyan prospect provided the Colombian Authorities don't hold up the decision process.

Could be a while then Pisces - is that what you are saying ??

Not sure I have that patience
Baza