Hi all,Interesting that Warren Buffet has put $80 million into...

Hi all,

Interesting that Warren Buffet has put $80 million into Woulfe Mining in South Korea. Berkshire Hathaway unit IMC International Metalworking Companies this week agreed to invest around $80-million in TSX-V-listed Woulfe Mining’s Sandong project in South Korea, which was once the biggest tungsten producer.

The deal involves IMC buying a 25% stake in the shuttered mine for C$35-million, investing C$19.25-million in a joint venture to build a plant that will produce ammonium paratungstate (APT), the metal’s tradeable form, and agreeing to provide up to C$15.75-million in a loan to fund Woulfe’s share of the capital cost of the plant.

The mine at Sandong, as well as the APT plant are set to start producing early in 2013, when the operation will reclaim the title as the world’s biggest producer, accounting for 7% to 10% of global output.

Now since the beginning of last year, Woulfe Mining has had 3 directors resigned from the company, as well as finding more cash for its project, also they had a review of the Feasibility Study that was completed in June 2012.

This review has been completed by the company with the assistance of its largest shareholder, Dundee Corporation, and has identified that considerable additional test work is necessary (the work program) to bring the Sangdong Project to proper commercial and financing preparedness. Subject to financing, the proposed work program is expected to begin as soon as possible and will take approximately twelve months to complete.


Has Warren Buffet backed the wrong company?

As far as I can tell, the Sangdong Project is still a year or two off from producing tungsten. They have 348.9 million shares ATM, with a market cap of about $C38 million, and a sp of about $C13c, With this in mind, I think that Warren Buffet, should have put some money into WLF,

Where will WLF be in say two years time?

The links below are worth a read.

http://www.miningweekly.com/article/korean-tungsten-project-gets-berkshire-hathaway-investment-2012-02-29


http://reports.standardandpoors.com/data/EQ/pdf/sr/9/98212a10.pdf?username=025199083057168012070225133086161045215056052206075147018076062131243198&password=055037204177001223091224162002250124014006089022105175025152180099112134&auth=Basic_Ultra&tracking=WebSolutions


Good luck to all that hold WLF