This “start-up” comes from the Sylvania, Dwyka Resources family led by Ed Nealon founder of Aquarius Platinum who took that company from nothing to the worlds 4th largest platinum producer. Terry McConnachie, CEO of Sylvania is also involved.
(Sylvania were the top performing share in 2007 FTSE AIM 100 up 256%) If the team can repeat that in 2007, will be very happy indeed.
Grant Button who has recently been appointed Magnum CEO, was responsible for the development of Sylvania and has now moved on to this new role.
When Grant Button was MD of SLV - the share price was 30 cents (12p), or cheaper, whereas today’s price is around $3.00 (£1.30) – ten bagger.
Now, he has recently been appointed in similar development role at Magnum – share price around 20 cents. Past performance no guarantee of success etc but I am in this one for the long term.
Magnum are basically a shell that they will reverse deals into – so it’s a leap of faith to invest in something when you don’t know what you are getting into. They do have some Tantalite and this is explained below. Understand that, all being well, they may come to London for more funding in 2008, with AIM listing.
What is Tantalum? Well it’s important in electronics, eg.
“Tantalum Shortage Delays Boeing 787 Dreamliner”.
"In the case of tantalum, the material was involved in a shortage that affected the entire electronics industry in 2000-2001"
From the most recent annual report, at 31 December 2006 there were 126,165,617 ordinary shares fully paid to 20 cents. 19,642,857 shares were issued in June placement making, I believe, making total of 150 million shares outstanding.
At Friday’s closing price of Aus$ 0.21cents, that’s a market cap of around Aus$ 30 million (£14 million)
Year high 45 cents Year low 20 cents
Projects ---------
http://www.mmel.com.au/Pdfs/pdf-MGUQrt300907.pdf
QUARTERLY REPORT 30 SEPTEMBER 2007 MAGNUM MINING AND EXPLORATION LIMITED (ASX:MGU.AX)
HIGHLIGHTS • Settlement on the acquisition of the Tantalite Valley project • Permanent presence established at Tantalite Valley • Infrastructure being refurbished and re-established at site • Extensive drilling and bulk sampling program under design • Changes to the Board
OPERATIONS
Tantalite Valley Project, Namibia
During the quarter it was announced that Magnum completed the acquisition of the Tantalite Valley project. The Tantalite Valley project is located on Mining Licence 77, located near Karasburg and Warmbad, within the Magisterial district of Karas in the south of Namibia.
Magnum acquired the Tantalite Valley project under the terms set out in the announcement dated 11 May 2006 and as at the General Meeting of shareholders dated 31 July 2006. Magnum paid an amount of N$8 million in cash and issued 15 million fully paid shares in Magnum as consideration.
Since settlement of the acquisition the Company has undertaken various activities to plan and commission an extensive drilling and bulk sampling program. The extensive exploration program is being designed to increase the understanding of the mineral resource and to generate samples to be sent to potential endusers for analysis.
The Company has established a permanent presence on site during the quarter and work is underway to re-establish and refurbish the extensive infrastructure already on site. The Company has purchased various capital items which are being utilised to re-establish roads on site, refurbish pipelines to provide water tothe plant site and general refurbishment of plant and accommodation facilities to prepare for an extensive exploration program over the next 12 months.
During the quarter, various independent advisors have visited site to finalise the proposed drilling program and to re-establish and improve the plant on site which will be used for the bulk sampling program that is planned to run in conjunction with the proposed drill program.
The design of the drilling program will be finalised shortly, when aerial photographs of the area are received, and it is anticipated that drilling will commence in the current quarter.
MGU Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
(20min delay)