This is interesting especially the final comments of chinese interference in LAMP:
Thursday, May 31, 2012 Orion takeover rekindles rare earth corporate story
Buy in a buyer’s market - and that is what Conglin Yue, an Australian based Chinese investor has clearly decided to do. His company has made a friendly takeover offer for Orion Metals (ASX:ORM) and its Killi Killi project in Western Australia near the border with the Northern Territory - which is a heavy rare earths play, although recently neglected by investors.
Yue’s company, which has also invested in Lynas Corp and Northern Minerals, is making a cash offer for Orion at A16c a share - compared to the A7.2c a share price before the offer.
The Orion board has recommended the offer.
This will light a fire under the REE story - which, we have to say, has been losing momentum of late. Those who believed that REE interest was all over will be jolted from their slumbers - Chinese investors still want to pick up good REE stories.
Orion Metals has recently made a breakthrough on its technical understanding in regard to the Killi Killi project. Queensland academic and rare earth specialist Professor Ken Collerson has confirmed earlier this month that the REE deposit is hydrothermal in origin.
Last year I reported on this theory.
Orion acquired Killi Killi back in September 2010 for just A$50,000 plus a royalty on future production. Then the company was approached by Ken Collerson, a highly respected geoscientist and emeritus professor at the University of Queensland, who suggested a theory about the HREE mineralisation. He came on board the project in December.
The theory that Orion began chasing was, in essence, that Killi Killi mineralisation is hydrothermal in nature - that the hydrothermal fluids were most likely expelled from a crystallizing igneous complex. This meant that the regional geological faults in the area may have provided a pathway for fluids and then the hunt was on to find the primary source of the HREE.
If you look at the intercepts from drilling programs, there were several recurrences of yttrium, neodymium, terbium and dysprosium (along with gold).
While there was excitement about dysprosium, it was the neodymium grades that were the head-turner.
Yue has been a major shareholder. The third largest is another Australian explorer Metallica Minerals (ASX:MLM) - best known to RMB readers for its scandium in Queensland and which is accepting the offer.
Posted by Robin Bromby at 05:24:21 AM inEditor, Robin Bromby, Intel
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Comments
Tracy said... Thank you for writing this piece today Robin - as always, it is a pleasure.
Received an email this morning and I would like to include some of the comments from this Australian investors insight: "Will Australian regulators consider Conglin takeover a 'Chinese government proxy takeover bid' and nix the deal? ...some of us down under buy when Conglin Yue buys. The Conglin Group in Australia, formerly named Baotou Anchang Trading Company...Conglin heavy into NTU, LYC, TUC, ORM. Principle Australian owner of 2 iron ore companies...this is a fascinating and big story here in Australia, perhaps indicative of further Chinese REE takeover strategies within Australia."
I would like to add that ORION, LYNAS, NORTHERN MINERALS, TUC and METALLICA MINERALS are all RareMetalBlog sponsors...and note that NOERTHEN MINERALS has just put out a news release today.
Thank you for reading RareMetalBlog. Reply Thursday, May 31, 2012 at 09:03 AM Jack Wu said... Firstly, why should I object to a 100 percent takeover offer on one of my shareholdings?
Orion Metals is a shareholding I bought mainly because Conglin Yue (China Government Surrogate within Australia) bought about 20 percent of Orion Metals.
Following the Conglin Yue stategy: he buys: I buy strategy has been a smart one.
However, Conglin Group, formerly known as Baotou Anchang Trading Company, attempted takeover of Orion Metals should again set off sirens within the Australian Regulatory agencies regarding infringement upon Australian Sovereignty Issues.
Lynas Board of Directors years ago did the exact same thing when a Chinese Government "front company" tried to buy controlling interest in Lynas. The Lynas Board of Director agreed in writing to sell the Chinese Government through one of their surrogates 51 percent controlling interest. In hindsight the offer was a "low ball" bid. Before the Lynas shareholders had their opportunity to vote the deal down, the Australian regulatory agency turned the Lynas deal down, Lynas paid the Chinese Government surrogate a "break up fee"
The Chinese Government REE Monopolist is quite content maintaining control of the REE and strategic metals monopolies thank you.
Now is the time for Australian Government and Australian Governmental Regulatory Agencies to get involved in the Orion Deal. We all need to know who Conglin Yue is, who is bankrolling him and his companies, and just how closely his involvements are actually representative of the Chinese Government.
Why not call for Australian Government Special Investigation into Conglin Yue, Conglin Group, and Baotou Anchang Group and their close relationships and funding from the Chinese Government?
Once again the Australian Government should step in and protect Australian Sovereignty for the Chinese Government!
http://www.conglingroup.com.au/
http://conglin.en.china.cn/
Australia Conglin Investment Group - Home www.conglingroup.com/ Latest news. Our new office in Riparian Plaza · New website of BaoTao AnChang Trading Co. Ltd. Reply Thursday, May 31, 2012 at 11:47 AM Jack Wu said... http://findarticles.com/p/articles/mi_m1094/is_3_46/ai_n58321254/pg_7/
In part:
"Moreover, East China Exploration, a Chinese state-owned enterprise, acquired 25 percent of Arafura last year, while the attempt of a Chinese enterprise to acquire 52 percent of Lynas Corporation, which plans to open a rare earth mineral mine in Australia in 2011. was blocked by Australia on national security grounds [Crooks 2010].
Similarly, following the discovery of a rare earth deposit in Australia by Northern Uranium of Australia, a Chinese state-owned company attempted to purchase a 51 percent interest in it, which was declined. Subsequently, the Chinese company purchased a 13.5 percent interest in it on the open market [Bradsher 2010b]." Reply Thursday, May 31, 2012 at 12:17 PM Jack Wu said...
12 June 2012
President Barack Obama Secretary of State Hilliary Clinton USA Ambassador to Australia
Please take action regarding Australia's Laissez-faire stance on Strategic Metals and Rare Earth Resources within mineral rich and rare earth rich Australia.
I have warned Prime Minister Julia Gillard and Minority leader Tony Abbott with no response!
China, working through Chinese state owned companies as well as more "secretive" Chinese surrogate operatives like Conglin Yue AKA Conglin Group International AKA Baotou Anchang Trading Company. Suspect Conglin Yue et al are Chinese Government agents buying up controlling interests in each and every single Australian Rare Earth Company.
Chinese operatives/surrogates are starting initially as "minority stakeholders" but now they are moving to takeover these Strategic Metal and Rare Earth Companies here in Australia.
First domino is Orion Metals.
Many more "dominos" to fall fast if our strategic partner Australia does not declare quickly that the Australian Rare Earth Companies are all off limits to Chinese takeovers on "National Security Grounds" (Australians said Lynas company and Northern Minerals were National Security issues in 2010).
I fear Australia under Julia Gillard is not keeping their eyes wide open? Australia just signed a free trade agreement FTA with Malaysia, despite obvious Chinese interference with Lynas LAMP plant in Malaysia.
Please forward this message to Barack and Hilliary. I am well known to the President because of my work in Colorado.
LYC Price at posting:
95.0¢ Sentiment: Hold Disclosure: Held
(20min delay)