NEW BACKERS 1ST THING MONDAY.OPEN UP 2.5P

Net asset value per share currently of circca 9.5 - 9.9p/share

Has rights to mines which have circa
$260m Gold
$130m Silver
2,000m Copper

All of which are capable of producing signficant revenue. The Copper mine - and the reason FML are in this hole, is probably the biggest asset.

They paid around $21m (last year!) for a 50% JV in it I think, but still owe the $7.5m convertible.

Obviously the loan holder has seen the price collapse and said they do not want stock and demanded a full repayment. The original terms for that loan (share issue conversion) I believe were 10p/share.

IF, and that's why we're speculating, the new funding can be achieved and the worst dilution will be 50% at 1.5p/share. Assuming all mines come on stream as planned (and revenues are already picking up after regulatory hold-ups - 1.5p could seem very cheap.

..so although stating figures of 2 and 3p short-term is a) uncertain until next week, b) unrealistic short-term (weeks), if all goes well it is achievable within the next 12 months IMO being still a significant discount to NAV and discounting profits from operations.

Back in June 2008 on Valuation...new backers at 1.50p could make alot of money:-

'Like many junior mining companies, Frontier insists it is undervalued. We paid US$21 million for half of Benkala, yet our market cap is only around US$25 million. If we were forced to sell Benkala, we could get at least US$60 million, potentially even US$120 million. While a disposal is not on the cards, Mr Savage does see benefit in consolidation, saying it makes sense for juniors to combine forces to create a mid tier company that commands a higher rating. Conversations have been held and while theres nothing in the pipeline at the moment, dont be surprised if Frontier does eventually strike a deal. Its hard work on your own and Frontier certainly needs a shoulder to lean on if it is going to make a success of commercial mining'.

http://www.minesite.com/nc/minews/singlenews/article/frontier-mining-might-not-be-averse-to-a-merger-with-another-junior-mining-company/80.html?tx_ttnews%5Bswords%5D=frontier%20mining&cHash=9021a12ef8

For those interested in more research, the mess we are in now relates to copper mine acquisition in Sept 2007 (not 2008 as I'd thought). Also the placing price was 14p per share(!) If Coville's conversion price was anywhere near the 20p the management got for their loan, no wonder the guys are chasing and prefer a cash repayment - seems fair. I'm sure they had every intention of converting (had the price been in the region of 15 - 20p per share). You can see though given the $10m invested by existing directors ($8m @ 14p/share) why they would be reluctant to offer Coville a discounted placement effectively giving them them a controlling share at discounted price. I wonder who the party is who will (assuming deal goes ahead) get the 50.1% - It must be a partner of a) Coville, b) The Directors named already below as participating. Either way - all parties have alot tied up here and at substantial premium to the figures we're talking about. I know 1.5 - 2p sounds alot to those able to buy low - but is it alot to those who saw value in conversions of 14p - 20p - No, obviously. So don't look at the Warrants face value premium as unrealistic - it's almost unfair to every shareholder bar those who bought in the last 6 weeks(!) IMO:

Acquisition

Frontier Mining Ltd ("Frontier" or "the Company"), the AIM listed Kazakhstan
focused gold mining and exploration company, announces that it has today
entered into a conditional purchase agreement with Coville Intercorp Ltd ("
Coville") to acquire a 50 percent interest in the Benkala copper-molybdenum-gold deposit ("Benkala", or "the Benkala Project") located in north-western
Kazakhstan within the Urals gold/copper ore belt. The aggregate consideration
payable for the interest in Benkala is US$21 million comprising $18.5m payable
in cash and the issue of 6,250,000 shares of Frontier common stock of US$0.01
each ("Ordinary shares").

Rights to the Benkala deposit were won in January 2006 by a subsidiary of
Coville in an open government tender. Upon government approval, the contract
will cover an area of 1.194 km2 and will be effective for a 4 year exploration
period followed by a 25 year mining licence.

Frontier and Coville have entered into a shareholders agreement relating to
their joint ownership of the Benkala project.

Placing

The board of Frontier has authorised the issuance of an aggregate amount of
94,034,929 Ordinary Shares.

87,784,929 Ordinary Share have been placed at 14p to a combination of new and
existing shareholders raising a total of $25,317,174. In addition, 6,250,000
Ordinary Shares are to be issued to Coville as referred to above.

Frontier anticipate that the net proceeds available to the company will be
approximately $7.6 million to proceed through to the feasibility phase as
indicated below.

The Placing is conditional on government approval on or before 21 September 2007 and admission of the placing shares to trading on the AIM market of the London Stock Exchange.

Frontier currently has 132,581,587 common shares issued. Following the
transaction, the company will have 226,616,516 common shares issued.

Related Party Transaction

Sokol Holdings Inc., a Delaware corporation ("Sokol"), is a related party, as it is jointly owned and controlled by the Company's two executive directors, Brian Savage and Tom Sinclair.

Sokol made certain advance payments, to secure the conditional purchase
agreement with Coville, totalling $10,806,190. Frontier agreed to repay that sum to Sokol. Sokol has agreed to participate in the placing in the amount of
$8,806,190, giving it a holding of 30,534,639 placing shares in the Company.

The balance of $2,000,000 will be an interest free debt until 29 February 2008
and thereafter will bear interest of 8% per annum and will be convertible at
Sokol's election at a price of 20p per share.

Comment at 5p on 30 June 2008.

'Share price growth over the medium term is important and something that management seek to deliver to shareholders. However, management are focused first and foremost on managing and optimising the business and expect share price growth to follow this. Management firmly believe that Frontier is trading at a significant discount to the intrinsic value of its assets'.

http://www.investegate.co.uk/Article.aspx?id=200806301617039185X

Alot of focus on many mining and exploration sector stocks at the moment. FML seems to be one of the very,very undervalued stocks even at 1.50p imo against the current price of 0.40p.

Update on Proposed Financing (Frontier Mining)

TIDMFML

RNS Number : 8263L
Frontier Mining Ltd
19 January 2009

?

19 January 2009
AIM: FML


Frontier Mining Ltd
("Frontier" or "the Company")


Update on Proposed Financing


Further to the announcement made by the Company on 22 December 2008, the Company
wishes to inform the market that negotiations regarding the GBP9 million debt
facility and the proposed acquisition of the assets from Silk Route Resources
Limited are at an advanced stage. However, there are no guarantees at this
stage that these negotiations will be finalised. In light of this progress,
Coville Intercorp Ltd has agreed to further defer the repayment of the US$7.7
million Convertible Loan Note until close of business on 23 January 2009.

The Company will update the market further in due course.

Ends

Not a done deal yet - but what realistically is the alternative? if the company does not continue as a trading entity with the scale of it's assets then it must be broken up and proceeds given to creditors and the rest distributed to shareholders - would that even be preferable (circa 6 - 8p/share)?

Best to sell its gonig nowhere.

and the reasoning is???

Good start to the week:-

sell..

mitzy - 12 Jan 2009 14:54 - 2 of 2
What a remarkable share worth at least 4p when their funding problem is resolve

http://www.moneyam.com/InvestorsRoom/posts.php?tid=13571#lastread

Monday, January 19, 2009

Frontier Mining says debt and acquisition talks at an advanced stage

Frontier Mining said negotiations regarding the planned 9 million debt facility and the proposed acquisition of the assets from Silk Route Resources Ltd are at an advanced stage, however, there are no guarantees that these negotiations will be finalised.


In light of this progress, Coville Intercorp Ltd has agreed to further defer the repayment of the US$7.7 million convertible loan note until close of business on January 23 2009, an extension of four days on the most recent deadline. The agreement between Frontier and Coville as part of the payment for the Benkala transaction in 2007 originally required Frontier to repay the sum by November 19 2008. The deadline had subsequently been pushed back twice.


Frontier Mining said in mid-December 2008 that its internal financial resources were presently inadequate to repay Coville, therefore an extension of the repayment and completion of alternative funding arrangements are imperative to ensure that Frontier Mining remains a going concern.
Frontier said today it will update the market further in due course.

http://www.proactiveinvestors.co.uk/companies/news/4056/frontier-mining-says-debt-and-acquisition-talks-at-an-advanced-stage-4056.html

The 3% Holding in company RNS on 12 January 2009 was a purchase by Nortrust:-

'The small to mid cap miners fell by an average of just over six per cent, though as usual there was a considerable range. The largest rise was recorded by Frontier Mining (AIM: FML), shares in which more than doubled from 0.2p to 0.45p on no news, although a company called Nortrust did cross the three per cent ownership threshold the previous week. The key to the upward share price move may lie in an announcement made in late 2008 about a US$9 million financing package that was scheduled to be made available on 18th January, most of which will be used to pay down an existing debt facility of US$ 7.7 million. One other problem for Frontier is that its very recently appointed broker and NOMAD, Libertas, is having problems. Libertass listing was recent suspended pending clarification of the companys financial situation, and that development was followed last week by the resignation of its NOMAD'.

http://www.minesite.com/nc/minews/singlenews/article/that-was-the-week-that-was-in-london-6be95824af/41.html

Excellent....RAB also taken a 4% stake:-

Frontier Mining Holding(s) in Company

TIDMFML

RNS Number : 8618L
Frontier Mining Ltd
19 January 2009

?

19 January 2009 AIM: FML

Frontier Mining Ltd
+-----------------------------------------------------------------------------+
| TR-1: Notifications of Major Interests in Shares |
+-----------------------------------------------------------------------------+


+-----------------------------------------------+------------------------------+
| 1. Identity of the issuer or the underlying | Frontier Mining Limited |
| issuer of existing shares to which voting | |
| rights are attached: | |
+-----------------------------------------------+------------------------------+


+-------------------------------------------------------------------+----------+
| 2. Reason for notification (yes/no) |
+------------------------------------------------------------------------------+
| An acquisition or disposal of voting rights | YES |
+-------------------------------------------------------------------+----------+
| An acquisition or disposal of financial instruments which may | |
| result in the acquisition of shares already issued to which | |
| voting rights are attached | |
+-------------------------------------------------------------------+----------+
| An event changing the breakdown of voting rights | |
+-------------------------------------------------------------------+----------+
| Other (please specify):______________ | |
+-------------------------------------------------------------------+----------+


+------------------------------------------------+------------------------------+
| 3. Full name of person(s) subject to the | CAPITAL PLC ACTING AS |
| notification obligation: |DISCRETIONARY MANAGER OF RAB |
| | SPECIAL SITUATIONS (MASTER) |
| | FUND LIMITED |
+------------------------------------------------+------------------------------+
| 4. Full name of shareholder(s) (if different | |
| from 3.): | |
+------------------------------------------------+------------------------------+
| 5. Date of the transaction (and date on which | 13/01/2008 |
| the threshold is crossed or reached if | |
| different): | |
+------------------------------------------------+------------------------------+
| 6. Date on which issuer notified: | 19/01/2009 |
+------------------------------------------------+------------------------------+
| 7. Threshold(s) that is/are crossed or | 4% |
| reached: | |
+------------------------------------------------+------------------------------+
| 8. Notified details: | n/a |
+------------------------------------------------+------------------------------+


+---------------+-----------+--+----------+---------+-----------+-----------+--+------------+----------------+--+-----------+
| A: Voting rights attached to shares
|
+---------------------------------------------------------------------------------------------------------------------------+
| Class/type | Situation previous to | Resulting situation after the triggering
|
| of shares | the Triggering | transaction
|
| | transaction |
|
+
+-----------------------------------+-----------------------------------------------------------------------+
| | Number of | Number of | Number | Number of voting |
% of voting |
| | Shares | Voting | of | rights |
rights |
| | | Rights | shares | |
|
+ + +
+-----------+---------------------------+-------------------------------+
| | | | Direct | Direct | Indirect |
Direct | Indirect |
| | | | | | |
| |
+---------------+--------------+--------------------+-----------+--------------+------------+-------------------+-----------+
| ORDINARY | 12,749,000 | 12,749,000 | n/a | n/a | 7,499,000 |
n/a | 3.43% |
| SHARES | | | | | |
| |
| USU314441093 | | | | | |
| |
+---------------+--------------+--------------------+-----------+--------------+------------+-------------------+-----------+
| B: Financial Instruments
|
+---------------------------------------------------------------------------------------------------------------------------+
| Resulting situation after the triggering transaction
|
+---------------------------------------------------------------------------------------------------------------------------+
| Type of | Expiration | Exercise/ Conversion Period/ | Number of
| % of voting |
| financial | date | Date | voting rights
| rights |
| instrument | | | that may be
| |
| | | | acquired if
| |
| | | | the instrument
| |
| | | | is exercised/
| |
| | | | converted.
| |
+---------------------------+-------------+---------------------------------+--------------------------------+--------------+
| n/a | n/a | n/a | n/a
| n/a |
+---------------+-----------+--+----------+---------+-----------+-----------+--+------------+----------------+--+-----------+
+--------------------------------------+----------------------------------------+
| Total (A+B) |
+-------------------------------------------------------------------------------+
| Number of voting rights | % of voting rights |
+--------------------------------------+----------------------------------------+
| SEE ABOVE | 3.43% |
+--------------------------------------+----------------------------------------+



+-------------------------------------------------+----------------------------+
| 9. Chain of controlled undertakings through which the voting rights and/or |
| the financial instruments are effectively held, if applicable: |
+------------------------------------------------------------------------------+
| RAB Capital Plc acts as investment manager for RAB SPECIAL SITUATIONS |
| (MASTER) FUND LIMITED. RAB Capital plc does not act as custodian for its |
| clients and therefore the shares are held in the nominee name of the |
| custodian of its clients, which is |
+------------------------------------------------------------------------------+
| Proxy Voting: |
+------------------------------------------------------------------------------+
| 10. Name of the proxy holder: | n/a |
+-------------------------------------------------+----------------------------+
| 11. Number of voting rights proxy holder will | n/a |
| cease to hold: | |
+-------------------------------------------------+----------------------------+
| 12. Date on which proxy holder will cease to | n/a |
| hold voting rights: | |
+-------------------------------------------------+----------------------------+
| 13. Additional information: | n/a |
+-------------------------------------------------+----------------------------+
| 14. Contact name: | LEGAL TEAM |
+-------------------------------------------------+----------------------------+
| 15. Contact telephone number: | 020 7389 7000 |
+-------------------------------------------------+----------------------------+


Annex Notification Of Major Interests In Shares
+--------------------------------------------+--------------------------------+
| A: Identity of the person or legal entity subject to the notification |
| obligation |
+-----------------------------------------------------------------------------+
| Full name (including legal form for legal | RAB CAPITAL PLC |
| entities) | |
+--------------------------------------------+--------------------------------+
| Contact address (registered office for | 1 ADAM STREET, |
| legal entities) | LONDON WC2N 6LE |
| | |
+--------------------------------------------+--------------------------------+
| Phone number | 020 7389 7000 |
+--------------------------------------------+--------------------------------+
| Other useful information (at least legal | |
| representative for legal persons) | |
+--------------------------------------------+--------------------------------+
| B: Identity of the notifier, if applicable |
+-----------------------------------------------------------------------------+
| Full name | ALL AS ABOVE |
+--------------------------------------------+--------------------------------+
| Contact address | |
+--------------------------------------------+--------------------------------+
| Phone number | |
+--------------------------------------------+--------------------------------+
| Other useful information (e.g. functional | |
| relationship with the person or legal | |
| entity subject to the notification | |
| obligation) | |
+--------------------------------------------+--------------------------------+
+----------------------------------------------------------------------------+
| C:Additional information |
+----------------------------------------------------------------------------+
| n/a |
+----------------------------------------------------------------------------+

ENDS

Still a sell the funding issue is not resolved..sell its another RBS..

But what realistically is the alternative? if the company does not continue as a trading entity with the scale of it's assets then it must be broken up and proceeds given to creditors and the rest distributed to shareholders - would that even be preferable (circa 6 - 8p/share)?

Very large buy for 6,607,919 shares just come through at 0.45p. There is a buyer out there!

I dont know the answer I do know RBS will be bust by Friday.

A 30k investment is not to be discounted lightly imo.