Beacon Hill Resources is very popular at the moment on other BBs yet here there seems to be nothing - so I thought I'd put together the stuff I've gather from the Internets and see if anyone here is investing in BHR - I'm not but I might at some time in the future when the fuss has died down

Beacon Hill Resources

harrycat-sharesmagazine this week's issue source fyi

no longer holding this one as i got stopped out. Delay in agreement with global coke worries me though as 1. 2months is a long time to sort out "minor issues" and 2. have not heard anything from global coke direct. Looks to me that someone jumped the gun a bit......(had me fooled unfortunately)

robinhood - understand your thinking but i am confident here - & will continue to hold - think bhr have turned the corner sp wise now - onwards and upwards - roll on end of this month & beyond - gl

apologies hc - posted in a bit of a hurry ref yesterday - but robinhood spotted where it was from

have a good weekend all

http://markets.ft.com/tearsheets/performance.asp?s=uk:BHR&ftauth=1290348550387

Over the last week Beacon Hill Resources Plc (BHR:LSE) outperformed the FTSE 100 Index. Overall the relative performance against the index has been mixed.

Shares Magazine 25.11.10

A revised investment deal with Indian coke manufacturer Global coke should complete this month and put a greater value on its Minas Moatize coal mine .

A larger resource statement is expected in December or early 2011 on the mine,and the company will start new drilling in FEB on its overlooked ,but highly promising magnesite project.

Fundamentally for BHR Minas Moatize is still valued at the same level, the entire mine is worth $212 million based on Global Coke's investment.That means BHR proposed 68%position stake would be worth $144 million .With 277.4 mill shares in issue at the group level this investment would therefore be equal to 32.3p per BHR share

This valuation excludes the magnesite operations which house broker Northland Capital values at 24.2 mill which is equal to 8.7p per share.

These calculations imply BHR should be trading as high as 41p once the Global Coke deal happens, but BHR has around 7.5 mill left to repay by July 2011 of a convertible loan note at 8p per share.

Expected the notes will be exercised as soon as the Global Coke deal concludes.

Shares Mag reported to day 25/11/2010

Nice post thank you. It may be of some incidental interest that my nickname since schooldays has been Gib (Initials are G.B.) and my wife calls me "Gibby" when pleased with me !

I did not see that article in shares mag or is eyesight going?

you are welcome oak - i mean Gib - good name!! Got mine from a former girlfriend! Hope your wife calls you Gibby often then! have a good evening

robin - give me your address and i'll get some carrots sent to you quickly!! cheers mate

Tuesday 30 November, 2010
Beacon Hill Resource
Raises US$35.8 million for Mo
RNS Number : 0319X
Beacon Hill Resources plc
30 November 2010



Beacon Hill Resources plc / Ticker: BHR / Index: AIM / Sector: Mining

30 November 2010

Beacon Hill Resources Plc ('Beacon Hill' or 'the Company')

Placing to raise US$35.8 million and Acquisition of Minority Interest in

Minas Moatize Coal Mine



Overview



Fund raising of 23 million (approximately US$35.8 million) through a placing of 184,000,000 new ordinary shares at a price of 12.5 pence per share ('the Placing') to satisfy the terms of the acquisition of the producing Minas Moatize coal mine in Mozambique by BHR Mining Limited ('BHR Mining') and to leave the Minas Moatize mine fully funded for the establishment of a large open pit coal mine capable of producing 4Mtpa run of mine ('ROM'), commencing production from Q1 2012.



Acquisition of minority interest in BHR Mining, taking Beacon Hill's interest in BHR Mining to 100 per cent., for an issue of convertible loan notes, convertible into an aggregate of 238,000,000 new ordinary shares.



Beacon Hill to gain full control of Minas Moatize coal mine, which is currently producing circa 8,000 tonnes per month, and which is expected to increase production to in excess of 2Mtpa saleable coal in accordance with the Company's open pit development plan.





Beacon Hill Chairman Justin Lewis said, "The Minas Moatize coal mine is a unique asset, being the only producing coal mine in the Tete Province of Mozambique, which is considered to be one of the largest undeveloped coking coal regions globally. This fundraising and acquisition of minority interest gives Beacon Hill 100 per cent. ownership of the Minas Moatize mine, which we believe will generate significant value for the Group as we ramp up production towards achieving expected annual saleable coal production in excess of 2Mtpa, potentially generating annual revenues of US$200 million per annum at current prices.



"The Minas Moatize project is now fully funded and we have the right team in place to achieve our development objectives for the mine. The life of mine off-take agreement that we have in place with Indian metallurgical coke producer Global Coke provides us with a guaranteed consumer for our coking coal and provides Beacon Hill with potential relationships with Indian steel producers and thermal coal consumers."





Placing



Beacon Hill Resources Plc, the AIM listed resource company, is pleased to announce that it has conditionally raised 23 million (approximately US$35.8 million) through the placing of 184,000,000 new ordinary shares of 0.25 pence each ('Ordinary Shares') at a price of 12.5 pence per share ('Placing Shares') with institutional and other investors, representing 39.1 per cent. of the share capital of the Company upon admission of the Placing Shares to trading on AIM ('Admission').



Collins Stewart Europe Limited acted as lead bookrunner and joint broker, Renaissance Capital Limited as joint bookrunner and joint broker and Northland Capital Partners Limited as nominated adviser and joint broker.



The net proceeds of the Placing will be used to satisfy the balance of the consideration for the acquisition of the Minas Moatize coal mine by BHR Mining. The remaining proceeds from the Placing will be used to develop the Minas Moatize coal mine, which currently produces approximately 8,000 tonnes per month, establishing a large open pit coal mine with expected production in excess of 2Mtpa of saleable coal, with production commencing from Q1 2012. The strategy remains to operate the coal handling preparation plant on a BOOT (build, operate, own and transfer) basis and discussions continue to progress well in relation to this.



This fundraising has enabled the Company to satisfy the terms of the agreement with the vendors of the Minas Moatize mine, without the requirement for Global Coke Limited ('Global Coke') to make a strategic investment into BHR Mining. Global Coke will remain a strategic partner to the Group through its off-take agreement for the coking coal product produced at the Minas Moatize coal mine for the life of the mine, for which the Group has received a US$5 million advance payment. The Group also remain in discussions with Global Coke concerning the development of a metallurgical coke facility in Mozambique.



The Placing is, inter alia, conditional on Admission. It is expected that Admission will occur, and dealings in the Placing Shares will commence on 3 December 2010. The Placing Shares will, when issued, rank pari passu in all respects with the existing issued shares of Beacon Hill, including the right to receive any dividends and other distributions declared following Admission.



Justin Lewis, Chairman of Beacon Hill, is subscribing for 600,000 new Ordinary Shares pursuant to the Placing and upon Admission will be interested in an aggregate 2,333,320 Ordinary Shares, representing approximately 0.50 per cent. of the Company's issued share capital, and options to subscribe for up to a further 8,000,000 Ordinary Shares.



Timothy Jones, Finance Director of Beacon Hill, is subscribing for 200,000 new Ordinary Shares pursuant to the Placing and upon Admission will be interested in an aggregate 860,000 Ordinary Shares, representing approximately 0.18 per cent. of the Company's issued share capital, and options to subscribe for up to a further 3,210,000 Ordinary Shares



Acquisition of minority interest in BHR Mining



The Company has today entered into an agreement to acquire the outstanding minority interest in BHR Mining, taking its interest to 100 per cent., valuing BHR Mining at approximately US$200 million. This acquisition will provide Beacon Hill with full control of BHR Mining and full exposure to the considerable uplift in value which the Board believes will be generated as the Minas Moatize mine is developed towards open pit production in the near future.



The Company has exercised its existing option to acquire 24 per cent. of BHR Mining from Consolidated Minerals Pte Limited ('Consolidated Minerals') for nominal value of 24. The Company has further agreed to acquire the remaining 25 per cent. of BHR Mining from Consolidated Minerals for a consideration of 29.75 million to be satisfied by the issue of convertible loan notes ('the Convertible Loan Notes'), which are convertible into an aggregate of 238,000,000 new Ordinary Shares.



The acquisition and the exercise of the option are both conditional upon Admission.



Conversion of the Convertible Loan Notes into Ordinary Shares is conditional upon the approval of the Company's shareholders to be sought at a general meeting to be called as soon as practicable, save that Convertible Loan Notes may be converted ahead of such general meeting to the extent that existing shareholder authority already permits. Unconverted Convertible Loan Notes in respect of 138,000,000 new Ordinary Shares shall, to the extent not already converted, convert automatically immediately upon the Company receiving the necessary authority from its shareholders at a general meeting to be convened as soon as reasonably practicable, and the balance of the Convertible Loan Notes may be converted into a further 100,000,000 new Ordinary Shares at any time until the first anniversary of issue at the discretion of the holder. Such Convertible Loan Notes, if not converted in the first 12 months, will attract interest of 15 per cent. per annum from the first anniversary until their expiry on the second anniversary of issue.



The acquisition of the minority interest in BHR Mining from Consolidated Minerals is considered to be a related party transaction under the AIM Rules for Companies. The Directors of Beacon Hill, having consulted with Northland Capital Partners Limited, nominated adviser to the Company, consider that the terms of the transaction with Consolidated Minerals are fair, reasonable and in the best interests of the Company and its shareholders as a whole.



Upon Admission, Consolidated Minerals will hold the Convertible Loan Notes capable of conversion into an aggregate of 238,000,000 new Ordinary Shares, representing a potential maximum holding of approximately 33.6 per cent. of the then issued share capital of the Company.



The Company is not subject to the City Code on Takeovers and Mergers ('the Takeover Code'), but its articles of association contain provisions by which if a person acquires shares in the Company in circumstances in which he would be obliged to make or extend an offer to the Company's shareholders or holders of other securities in the Company under the Takeover Code if the Company was subject to the Takeover Code, the directors may serve notice upon such person (a 'Mandatory Takeover Notice') requiring him (and/or persons acting in concert with him) to make or extend an offer in writing in accordance with the requirements of the Takeover Code as if the Takeover Code did apply to the Company. A Mandatory Takeover Notice would not be enforced by the Takeover Panel, as the Company is not currently subject to the Takeover Code, but a Shareholder who did not comply with a Mandatory Takeover Notice would potentially be subject to certain sanctions laid out in the Company's articles of association (such as loss of voting and dividend rights). The Directors have resolved that they will not exercise their right under the Company's articles of association to serve a Mandatory Takeover Notice if such right arises as a result of the issue of the Convertible Loan Notes or the exercise of the rights of conversion under the Convertible Loan Notes.



Acquisition of Minas Moatize



BHR Mining has entered into an agreement with the Vendors of Minas Moatize Lda for a further extension of the date of the final outstanding payment to 8 December 2010. In consideration of these extensions BHR Mining has agreed to pay a further US$1 million, taking the aggregate consideration to US$41 million.



Issued Share Capital



Following Admission, the total number of shares in issue will be 470,488,956 Ordinary Shares. The Company will also have approximately 37.2 million nominal value convertible loan notes outstanding, of which approximately 7.5 million (plus accrued interest) relates to the convertible loan previously issued on 19 July 2010, repayable on 18 July 2011 and convertible into Ordinary Shares at 5.5 pence per share at any time whilst it is outstanding, having been reduced from a conversion price of 8 pence per share in accordance with the terms of the loan note instrument, and the balance being the Convertible Loan Notes which will be automatically converted or convertible into Ordinary Shares at 12.5p per share as described above.



The maximum number of Ordinary Shares that can be issued in respect of conversion of the convertible loan notes, including accumulated interest, is 401,695,951 Ordinary Shares, representing 85.4 per cent. of the issued share capital of the Company at Admission and a maximum of 46.1 per cent. of the then issued share capital.



**ENDS**



For further information on the Group, visit www.bhrplc.com or contact:



Justin Lewis
Chairman, Beacon Hill Resources Plc
+61 (0) 3 9629 9505

+61 439 162369



William Vandyk
Northland Capital Partners Limited
+44 (0) 20 7492 4750

Charles Vaughan
Northland Capital Partners Limited
+44 (0) 20 7492 4750



John Prior
Collins Stewart Europe Limited
+44 (0) 20 7523 8350

Stewart Wallace
Collins Stewart Europe Limited
+44 (0) 20 7523 8350



Jeremy Wrathall
Renaissance Capital Ltd
+44 (0) 20 7367 8273

Thomas Beattie
Renaissance Capital Ltd
+44 (0) 20 7367 8270



Susie Geliher
St Brides Media & Finance Ltd
+44 (0) 20 7236 1177

I would like clarification as to how they are going to get coal from Tete to the export market at a competitive price ? Crossing Mocambique to Beira is far and I think there is no railway, plus roads must be bad. They could road transport it to southern Malawi, then rail to Beira, but it is still far. I'm sure the Zambeze river is not navigatable from Tete to the coast.
I fear it will be expensive to get coal from Tete to a port, and still be competitive to ship to market.
Coal has been known to exist at Tete for years, even minow Baobab Resources are assessing it. In the 1970's it used to be trucked from Tete to Malawi, for Malawi local use. The trucks drove across Mocambique in convoys for security in the days of the Frelimo freedom fighters. The vehicles would get shot at in those days, and arrive in Malawi with bullet holes.
I think their is no local market for large quantities of coal in east and central africa ?

Perhaps someone knows the answer - please clarify, if you have any ideas.

Beginning to smell more and more like the old Stanelco....

lol - not a nice smell robin!

transport
Infrastructure and Services

Mozambique benefits from good infrastructure with major recent investments into transport and communications. The country also has a robust power supply which is both low cost and easily accessible.

The closest port to Tete is at Beira, approximately 600km away and linked by both a main road as well as the Sena railway, which has recently undergone a US$200 million upgrade, partly financed by the World Bank. The estimated coal carrying capacity of the Sena line is expected to be in the region of 12-15Mtpa once fully operational.

In addition to Beira, there is an existing natural deepwater port at Nacala with associated railway line that runs to Blantyre in Malawi. The Nacala port and railway line will provide a larger and more long-term alternative to the smaller port of Beira, as coal output from the Tete region is expected to far exceed the transport capacity of the Sena railway and Beira Port by 2015. The Mozambican government is already progressing discussions to upgrade the existing Nacala line and build 200kms of new railway to link the existing line with Tete across Malawi. The Nacala line is also seen as a vital link for land locked countries like the Democratic Republic of Congo, Malawi, Zimbabwe and Zambia to gain access to the coast for export. The Mozambican government has already announced that US$500 million has been secured from European governments to develop the line.

Thanks - Gibby. I was not trying to put the Company down, but wished to know about these essential logistics. I am of the opinion that a lot of coal exists at Tete, as I have lived in Malawi and worked for Government, for about 20 years. and have heard about it.
The transport logistics are important out there.
I did not know a working railway went near Tete !
When I was there the infrastructure in Mocambique hardly existed. but perhaps that was because of the Frelimo freedom figters and then the Renamo fighters.
Things must be better now. Mocambique was then a vast underdeveloped country with much unused land. Not many resources seem to have been found yet, apart from Titanium sands by the coast, and some gas by the northern coasts.

you are welcome Rekirkham - and yes there has been trouble over the years out there so understand your aprehension - i honestly believe that a lot of investors are missing the full upside here - i am glad bhr are fully funded now - resource upgrade due soon etc etc i am sure you know the potential here - but i am guessing some investors looking at other good opprtunities out there right now - i am fortunate to have bhr in my portfolio even though it may not appear that way right now - i think warren buffet said 'buy when others fear to' hey ho - have a good evening

AT THE other end of the spectrum is Beacon Hill Resources, a company that can trace its existence back less than ten years. Beacon Hill, quoted on the Alternative Investment Market, owns the only coal-producing mine in the Tete province of Mozambique.

This may not sound like much, but Tete is widely considered to be the largest undeveloped coal region in the world, so much so that two mining monoliths, Vale of Brazil and Riversdale of Australia, are firmly positioned in the area.

Beacon Hill, sandwiched between these giants, may be a minnow but it is already mining coal while they are some years away from production.

Chairman Justin Lewis is based in Melbourne following his marriage to an Australian, but spent most of his career in Britain and now travels frequently to Mozambique.

He acquired the Minas Moatize mine in Tete last May, when it was producing 2,000 tons of coal a month. This has already increased to 8,000 tons a month and is expected to rise to 20,000 tons a month this year and 200,000 by 2012.

The company is moving from more expensive and challenging underground mining to open-pit, which is easier, cheaper and offers a far safer and more agreeable environment for the miners.

Coal has soared in value over the past decade as a result of rising demand. Beacon Hill can obtain $100 a ton (65) for its coal and the cost of digging it out of the ground is about $50 a ton.

So, if prices stay static, the group should deliver turnover of $240m in a couple of years and profits of $120m.

Midas verdict: Beacon Hill is in the high-risk investment category. But for investors in search of adventure, this could be an exciting prospect. The shares are 15.25p. Buy.

It was also tipped by Midas in the Daily Mail as a share for 2011

Newspaper Share Tips

yes i liked midas comment 'Beacon Hill Resources, on the Alternative Investment Market, owns the only coal-producing mine in the Tete province of Mozambique - widely considered to be the largest undeveloped coal region in the world,
Midas verdict: Beacon Hill is high-risk - but could be an exciting prospect.'

i also like (before recent coal price increase) can sell $100 ton for a cost of $50 ton to deliver it from out of the ground!Already producing in excess of 8000 tons per month - will increase this year to at least 20000 tons per month then 200000 tons per month in 2012 - i look fwd to the divis - kerrrchinnnng! gl

interesting list of major shareholders..

Major Shareholders
Notifier** Holding Value*
Renaissance Partners Investments Limited 121,564,103 25,224,551
Consolidated Minerals Pte Limited 120,600,832 25,024,673
Asia Carbon Pacific Pty Limited 53,579,805 11,117,810
Dhunn Carr Industries Limited 39,642,743 8,225,869
Smit Superannuation Pty Limited 33,508,321 6,952,977
ATT Resources Pty Limited 14,833,015 3,077,851
Dzeladia Ceman 7,237,797 1,501,843
RAB Capital Plc 2,337,800 485,094