african minerals appears to be upping its stake - possible takeover / offer?

They say - too much salt is not good for your health -
I'm using a bit more of peper instead

thanks for the advise

13.625p +1p

Director Deals - Baobab Resources PLC (BAO)

Jeremy Dowler, Chairman, bought 75,000 shares in the company on the 30th August 2013 at a price of 13.38p.
The Director now holds 8,740,169 shares.

Some movement up after being lower at the start, it has not been higher for some time.
Indicators rising give an idea of wanting to move higher

two further tick ups this morning, with some larger size buyers now appearing

5 days chart

Not any longer able to buy at 13.42p, now paying 13.64p

a good move up today

another day another move up, a 50K buy did the job this time, a large spread now but the prices paid are usually just above middle price

and keeps moving higher, the recent movement up has good fundamentals it seems

Today is on the move again 14.25p +1.25p after the recent pause

on the charting from the MACD has gone positive on crossing up the 0 line

NEWS placing at 15p
Baobab Resources secures additional capital

Baobab Resources has announced a capital raising at a 15.4% premium to its closing share price last night.

The company and an African Minerals Exploration & Development Fund executed a placement agreement which can potentially finance the company's work programme.

The Fund currently holds 26.73% of the company's voting rights through its wholly owned Redbird Investments.

Jeremy Dowler, Baobab's chairman, said: "The company is very pleased to receive such a firm show of support from its principal shareholder in what is a challenging market. Not only is the placing at a significant 15% premium, but also signals the Fund's strong belief in the company's immediate and longer term prospects.

"The first tranches of funding enable Baobab to accelerate key components of the bankable feasibility study this year, which will address and mitigate areas of perceived risk and optimise flow sheets. Looking forward, the proposed structure will also provide a mechanism to underwrite the remaining work programme, ensuring a premium to any future transactions. Baobab's board of directors therefore unanimously recommend the terms of the placement to shareholders."

PLACEMENT AGREEMENT SUMMARY

§ Redbird to subscribe immediately for 5,000,000 ordinary shares of 1 pence each ('Ordinary Shares') in the Company (the 'Placing Shares') at a price of 15 pence, raising £750,000 before expenses (the 'Placing'), and increasing its relevant interest in the Company to 27.93% of the Company's total voting rights.

§ Redbird to be granted one option to subscribe for an additional share at an exercise price of 20 pence for each Placing Share, expiring at 5.00pm on 30 June 2016 (the 'Placing Options'). On the discretionary exercising of the Placing Options, a further £1,000,000 will be raised.

§ The Company will conditionally place with Redbird, subject to shareholder and regulatory approval, a further 8,500,000 Ordinary Shares in the Company (the 'Conditional Placing Shares') at a price of 15 pence per share to raise a further £1,275,000 before expenses (the 'Conditional Placing').

Is going places today as the share price has BREAKOUT from Neckline @14p

http://www.proactiveinvestors.co.uk/companies/news/62125/baobabs-investment-from-major-shareholder-underlines-attractiveness-of-tete-says-shore-62125.html

Volume has been growing this morning and again this afternoon as the share price is reaching new highs lately

Another good push forward to 16.75p this morning as volume is high after 1 hour trading

sounds like they're doing it right - the MD talks about their latest RNS interview

Some parts of Brokers Shore update

Tete DFS is essentially fully funded

Baobab had good news last week (11th October 2013): it is to place 13.5m
shares with its largest shareholder African Minerals Exploration &
Development (AMED) to raise £2.0m (gross), i.e. 15p/share – a 15.4%
premium to the previous day’s closing price. AMED will be granted 13.5m
options with a 20p strike, the exercise of which would raise a further £2.7m.
AMED will also receive a further 27m options whose strike will be 105% of
the five-day volume-weighted average price (VWAP) prior to exercise (at
20p, for illustration, their exercise could generate a further £5.4m). In our
view, AMED’s willingness to invest at the above prices underlines the
attractiveness of Baobab’s 85%-owned flagship Tete Project in Mozambique.

Investing in junior explorer-developers is by nature relatively high risk but
we continue to believe Baobab offers a more robust, lower-risk investment
with the prospect of better potential returns than typical of its peers.
Three tranches: Initially, AMED will receive 5m shares (plus 5m options), giving
it a 27.93% interest (previously 26.73%) in Baobab‟s resulting 306.8m of issued
shares. A second tranche of 8.5m shares and 8.5m options, and a third tranche
comprising the 27m VWAP options, are conditional on shareholder and regulatory
approval. These latter tranches could take AMED‟s interest above the 30% mark,
and a Takeover Panel waiver would be required to avoid AMED having to make a
general offer for all the outstanding shares it does not own.

DFS funded: Assuming all the requisite approvals are received, we believe that
the monies raised from the shares issued should be sufficient to complete what
we regard as a „bare-bones‟ Definitive Feasibility Study (DFS) on the Tete
Project. Option exercise should provide funds for additional work. Work currently
planned includes pilot plant metallurgical testwork on a bulk sample, a 3,000m
drilling programme designed to upgrade sufficient resources to Measured status
to support the first 25 years‟ mining, completion of environmental studies and
Memorandums of Understanding (MoU) for power, rail and port allocation, and a
detailed study on power generation options.

Significant potential for upside as Baobab derisks: For modelling purposes,
we have assumed that all the above shares are issued and options exercised in
H1 FY2014. For the third-tranche options, we have conservatively modelled a 15p
strike, i.e. the same price as the placing shares. The total monies raised and
overall fully diluted shares are similar to those in our last published assumptions
(19th June 2013). Consequently, our Tete Project attributable NPV10% range falls
only slightly, to 54-219p/share fully diluted (previously 55-221p/share). It should
be borne in mind that this makes no provisions for the potential for further volume
or mine life expansion, the possibility of upgrading titania slag to produce highervalue
by-products (which requires investigation), Baobab‟s various other assets in
Mozambique, or that the Tete Project is being progressively derisked.

Models updated
We have updated our Baobab models to reflect developments since our last published note
(19th June 2013). Principally, the changes comprise the replacement of our previous funding
assumptions (the raising at 17p/share of £3.5m in FY2014 and £5.5m in FY2015) with:

● The three tranches of AMED funding. As mentioned, we have assumed the issue of all
shares and exercise of all options in these tranches in H1 FY2014. For the thirdtranche
options, we have conservatively modelled a 15p/share strike, the same price
as the placing shares but lower than the 20p/share strike for the tranche 1 and 2
options. As a result, £8.7m is raised and issued shares rises by 54m.

● A drawdown of £0.1m from the £17m Equity Line Facility, in which there remains
£13.7m of headroom.
It should also be noted that the IFC made a pro rata contribution of US$1.0m to DFS
expenses in August 2013. We expect the IFC to continue to make further pro rated
contributions as the DFS progresses.
We have updated our models to reflect developments since our last published note
The IFC contributes pro rata (15%) to Tete Project funding

Conclusions: undervalued; significant upside potential
Baobab‟s current share price is far below our conservative Tete Project 1-2Mtpa attributable
NPV10% valuation range of 54-219p/share fully diluted. This is despite the fact that our
valuation makes no provision for further volume and/or mine life expansion potential, the
possibility of upgrading titania slag to produce higher-value by-products (which requires
investigation), or Baobab‟s various other assets in Mozambique. There is thus clearly
significant upside potential to our valuation.
We believe that Baobab‟s current share price represents an enticing low-cost entry
opportunity. We expect significant share price appreciation as Baobab advances towards
production and thereby becomes progressively derisked, and its compelling pig iron story
becomes more widely recognised.

There is significant upside potential to our Tete Project valuation of 54-219p/share
We conclude that Baobab‟s current share price represents an enticinglow-cost
entry opportunity into a highly compelling story

hxxp://baobabresources.com/files/ShoreCap_Baobab_20131016.pdf

WATCH: Baobab Resources - The 96th Minesite forum

Click here

LISTEN: Ben James, Managing Director of Baobab Resources, discusses the initial Tenge drill results at the company's Tete pig iron project in Mozambique

Click here to listen

I advised getting out of this in August 2013 as Mocambique iron costly to get to market, and now global glut of the stuff - arn't I clever ?