Ann: Tiger Resources strikes alliance with MCK Tr, page-8

re: Ann: Tiger Resources strikes alliance wit... All,

I not of fan of dilution under any circumstances.

This raise a couple of questions.

The announcement says the TGS was a approached by MCK, so this dilution was not instigated by Tiger.

Also, the proceeds will be utilised "with proceeds to be settled through the provision of mining services for the Stage 2 solvent extraction electro-winning (SXEW) operation at Kipoi."

Its interesting they have agreed this given the main selling pt of the company is low costs for the next three years given there is enough feed in those stockpiles for the next 3 years of SXEW operations. You'd assume this agreement to dilute, would significantly reduce costs for the next couple-few years and maximise positive cashflows for the next phase of development of the SXEW.

Unless this money btw 12-13mio AUD is the tipping pt to having enough free cash to keep developing the SXEW is uncertain, but in the context of what we know its hard to understand the reason for this dilution.

For those that have followed TGS, the last issue the company had was the lack of feed to process, so why MCK?

We'll all know in due course, but I wouldn't be surprised given how business is done, that this transaction, could free or provide new access to other opportunities or may be a very selective and strategic play at hand.

MCK appears to be a subsidary of Nikanor Plc. See exert from Wikipedia on them:

Nikanor Plc Nikanor,[2] was a publicly quoted holding company for Global Enterprises Corporate (GEC) with assets in the rich Copper Belt region in Katanga Province, Democratic Republic of the Congo. Nikanor Plc was incorporated in 2006 with its registered head office in Douglas, United Kingdom. Nikanor's stock was listed on the LSE's Alternative Investment Market in London in July 2006. The IPO raised $400 million, and Nikanor's market capitalization reached $1.5 billion.[2] Emile Mota, President Joseph Kabila’s former chief of staff and Simon Tuma-Waku were on the senior management team of Nikanor. Simon Tuma-Waku was Minister of Mines and Energy under President Joseph Kabila, who promulgated the new mining code in 2002. (Mining Journal 2008)."[3] May 2007 Beny Steinmetz, Dan Gertler and the Gertner Group, Nikanor`s three main stakeholders, launched a hostile take over bid for Nikanor, which valued Nikanor’s shares at £6.00, the price when it floated. was presented by the Cosaf Ltd consortium,[notes 1] (which also includes the Swiss trader and Gertler's long-time associate, Glencore International AG and UK equity fund, RP Capital Partners) [notes 2] presented the bid which was opposed by those shareholders in Nikanor not involved in the bid. (Mining Journal 2008)."[3] In January 2008 Nikanor was merged into Katanga Mining Limited. [notes 3] Katanga paid US$452 million in cash to Nikanor Shareholders.[4] Nikanor planned on participating in the consolidation of the companies operating in the Zambian-Democratic Republic of Congo copperbelt region. In January 2008 Katanga Mining Company (KMC) acquired Nikanor PLC for $452m.[4]

In a 2011 article by Reuters journalists described how Glencore and Dan Gertler partnered in Nikanor from 2007 until its final merger with Katanga Mining.[5]

In June 2007, "Glencore and partner Dan Gertler, an Israeli mining magnate, paid GB£300 million for a quarter-stake in mining company Nikanor, which was seeking to revive derelict copper mines next to Katanga Mining's properties. That deal gave Glencore exclusive rights to sell all Nikanor's output -- an "offtake" agreement.... [Then, o]n Christmas Eve 2008, ... [having] lost 97 percent of its market value over the previous six months ... in the depths of the global financial crisis and ... running out of cash, Katanga accepted a lifeline it could not refuse. [Glencore] wanted control. For about US$500 million in a convertible loan and rights issue, Katanga agreed to issue more than a billion new shares and hand what would become a stake of 74 percent to Glencore. ... [By early 2011], with copper prices regularly setting records above US$10,000 a ton, Katanga's stock market value [had reached] nearly US$3.2 billion.... [Since the Glencore acquisition], Katanga ... is reaping the benefit of the surging markets and its wealthy, powerful owner. After losing US$108 million in 2009, it posted an annual profit of US$265 million in 2010."

Call me a conspiracy theorist, but this transaction is less to do with free trucking of ore and more to do with a strategic partnership of sorts and access to future business opportunities / other.

I'd welcome anyone else's insights or what they can dig up (pardon the pun) on this....

Very interesting times ahead.