Southern Arc Minerals (SOACF-US; SA-Canada)
IF YOU TRY TO BUY AND CANT TRY SOACF WITH AMERICAN ACCOUNTS
Southern Arc Minerals Ltd.
Box 1078, Suite 1500
885 West Georgia Street
Canada V6C 3E8
•52 week high $2.48 52 week low .20 Current Price $1.25
•Estimated Market Cap $98,000,000
•Outstanding Shares 80,500,000 fully diluted as of 12-1-07
•Cash $14,000,000 after closing of $12,000,000 financing http://www.southernarcminerals.com/s/NewsReleases.asp?ReportID=274408&_Type=News-Releases&_Title=Southern-Arc-Announces-12-Million-Equity-Financing
•CEO owns or controls about 10% of stock issued
Southern Arc Minerals is a Junior Gold and Copper exploration company with multiple projects in Indonesia, one of the most prolific regions in the world for elephant sized Gold, Copper, and other mineral deposits. Indonesia is home to two of the world’s largest operating Gold and Copper mines, Batu Hijau- Newmont, and Grasberg – Freeport McMoran.
Southern Arc believes they are the leading Junior Exploration company in Indonesia having secured several exploration rights in the year 2005, when the Juniors were not securing exploration projects in the area.
About the current drilling project- Selodong
Of immediate interest to investors is the Selodong Intrusive Complex that Southern Arc secured from Newmont Mining in the year 2005. In return for all of the historical drilling results that Newmont had, and a 2% future royalty on any future production, plus the “Right of first refusal”, Southern Arc secured the exploration rights to this area in West Lombok. The Selodong Intrusive Complex encompasses a large gold-copper porphyry deposit that was explored by Newmont and has been further evaluated by Southern Arc to provide a basis for infill and deep drilling, which is currently ongoing. Although classed by Newmont likely to be as significant as the porphyry that ultimately became the world-class Batu Hijau Mine on Sumbawa Island, the company's resources were subsequently concentrated on developing the latter, already more advanced porphyry in west Sumbawa, adjacent to the south to Southern Arc's Taliwang Project. Selodong was therefore put on hold by Newmont and ultimately, in accordance with Indonesian law, the Selodong porphyry had to be relinquished by Newmont, together with the whole of the Block 1. As the reliquishment was being processed Southern Arc acted immediately to acquire Block I as an expansion of its property portfolio.
The excitement began this spring when Southern Arc announced they would begin “deep drilling” this prospect with 600 meter plus holes. Prior to this, Newmont had carried out hundreds of drill holes up to 125 meters in length. Upon the first drill hole being announced in early May, the stock went from 70 cents to about $1.70 in a short period of time. Since then, they have drilled off a further 6 additional deep drill holes as they define and discover the size of the deposit. These holes are showing massive amounts of Gold and Copper intercepts at an average length intercept of 430 meters per hole. The Ore Value is roughly $25 per tonne, and we some have estimates already of 300 million tonnes. The gross in situ value would be $7.5 billion. The market cap is only 100 million fully diluted. This is less than 1% of in situ potential value, with much more upside in tonnage potential to come as they continue drilling.
Juniors usually get bought out for between 10% and 40% of in situ ore value. A good example is a company called Palmajero. They were bought for 1.1 billion in a merger this summer after drilling off about 3 million ounces worth of proven gold equivalents. This was 40% of the insitu valu. As Southern Arc continues to define the resource with more drill holes, they build upon the gross ore value of the site. This is a Porphry Style deposit, very inexpensive to mine and very profitable. Majors love these types of discoveries. To wit, three of the Major miners of the world have signed confidentiality agreements to review all of the metrics of the Selodong deposit since September. We also understand from internal sources at the company that the Chinese have quickly staked out a significant number of prospective areas since Southern Arc first came into Idonesia.
While the stock had an amazing run from 20 cents in February to as high as $2.48 in June of this year, it has consolidated over the past 6 months or so into a bullish pattern. The company announced a $12,000,000 private placement this week at $1.20 a share. It was fully subscribed within 48 hours and will officially close around December 10th. The stock traded down from the $1.40 range to the 1.12-1.22 range on this news, as is expected. Once this placement officially closes out, we expect the stock to regain momentum on news that will be coming all year long on drill results.
Insider buying and other coverage
CHECK INSIDER BUYING HERE SHOWS THE CEO BUYING SHARES ON THE OPEN MARKET HIMSELF! http://canadianinsider.com/coReport/allTransactions.php?ticker=sa.v
John Proust is the CEO of Southern Arc. He has been a regular open market buyer of the stock all summer long. John has paid as much as $1.80 per share and as little at $1.10 per share in the open markets. It is extremely rare to find a Junior exploration company with top level executives buying the stock in the open market. In addition, Michael Andrews is a noted Geologist with 30 plus years of world experience, a Director, and he has purchased shares in the open market at 1.49, 1.50, and 1.56 over the past 3 months. John Proust and Michael Andrews have also participated in private placements with their own funds. Mr Proust controls or effectively owns close to 7.5 million shares.
One of the most respected Gold and Mineral analysts-writers is Bob Moriarty, of 321Gold.com. Bob discovered Southern Arc this spring at 35 cents or so a share when he went on a site visit. He believes it may be on of the most exciting Juniors in the market to invest in today. He continues to own a significant number of shares and has written up the company a few times this summer. You can read the articles below by Bob as well as Omar Boulden from his site. In it, Bob speculates that Southern Arc will end up being acquired for between 1 and 2 billion dollars within 12-18 months. At current share levels, that would equate to $12.40 cents full diluted to $24.80 cents fully diluted.
In addition, Bob Bishop retired this summer after more than 30 years writing about precious metals and junior exploration companies. Prior to retiring, Bob’s final newsletters had extremely positive commentary on Southern Arc as well. The coverage this summer helped push the shares to a 52 week high in June of $2.48 per share, up 1200% in only 4 months time from its lows. The company has also been mentioned by Roger Wiegand, Adam Hamilton and others.
Southern Arc stock has drifted back off on low volume as Bishop retired and Moriarty has not written them up in several months. The company has done a poor job of creating market awareness of their Selodong and other prospective exploration projects. With this recent financing now being completed and $12,000,000 soon in the bank, we expect this to change. A second drill was recently mobilized to the site and there are now two drills going full time. A 3rd deeper 1,200 meter drill is being secured now and will help further define how deep the deposit may go. We also are hoping for new institutional support now that Haywood Securities and Cannacord have helped with the financing.
The company and their geologists have identified 15 Porphry targets within the Seldong complex. With some extrapolation, its possible over time they could prove up more copper and gold than Batu Hijau has. Batu Hijau has roughly 1 billion tonnes of copper and gold and is owned by Newmont. Newmont was working on the Selodong deposit and relinquished it to get their Batu Hijau mine up and running by 2001. Southern Arc was in the right place at the right time, and the drilling continues to show it’s possible the 15 Porphry targets connect up and in the future, could prove to be as big or bigger than Batu Hijau, one of the worlds 10 largest gold and copper open pit mines. The grades from drill results so far are remarkably similar. I would suggest you read up on the site for more details, maps, and drill hole results.
[b]The following links provide some excellent due diligence reading sources. Once this equity is discovered by the masses, we believe the share price can very rapidly appreciate to fairer value levels. Please read some of the information below and do your own due diligence. You may purchase shares with the symbol SOACF in the US, or SA.V in Canada.
May article from 321 Gold after first deep drill hole
June article on Southern Arc regarding fair value and due diligence
August article by Bob Moriarty on SA
Company news releases:
Powerpoint presentation on SA.V
John Proust, C. Dir.
Position: President and CEO
John Proust has successfully managed, directed and advised public and private companies regarding debt and equity financing, mergers and acquisitions and corporate restructuring since 1986. Highly regarded in the industry for his management skills and attention to detail, he has held and is holding senior operating positions and has served on the boards of numerous private and TSX Venture Exchange listed companies including as current president, CEO and a director of Southern Arc Minerals Inc. and as director of Western Uranium Corporation, Superior Mining International Corporation, and Canada Energy Partners Inc.
Mr. Proust was also previously the past President and a Director of Signature Resources Ltd. (UrAsia Energy Ltd.), President and a Director of TelcoPlus Enterprises Inc. (Yamiri Gold and Energy Inc.), President and a Director of Adobe Ventures Inc. (Coalcorp Mining Inc.), and a Director of Atlas Cromwell Ltd. (Terrane Metals Corp.), Canada West Capital Inc. (Canadian Sub-surface Energy Services Corp.), Chap Mercantile Inc. (Silver Wheaton Corp.), Full Riches Investment Ltd. (Bankers Petroleum Ltd.), Cash Minerals Ltd., Navigator Exploration Corp., and Strongbow Exploration Inc. In addition, Mr. Proust was previously the President, a Director and the majority shareholder of Canada Talc Limited, an Ontario miner and processor if industrial minerals.
Mr. Proust has extensive experience in corporate governance, is a graduate of The Directors College, Michael G. De Groote School of Business at McMaster University and holds the designation of Chartered Director (C. Dir.)
Michael Andrews, Ph. D., FAusIMM
Mike Andrews is a geologist with over 26 years of research and mining industry experience in gold, copper, coal and iron exploration. Dr. Andrews is currently a director of Kingsrose Mining Ltd, Advance Concept Holdings Ltd., Paragon Resources (Hong Kong) Ltd., Managing Director of Pacific Goldfields Pty Ltd. and Natarang Offshore Pty Ltd, Australian subsidiaries of Advance Concept Holdings Ltd., and Director of Indonesian PT Natarang Mining and PT Paragon Perdana Mining. Dr. Andrews is a Fellow of the Australasian Institute of Mining and Metallurgy.
Doug Leishman, B.Sc. (Hons. Mining Geology), A.R.S.M., P.Geo.
Mr. Leishman was most recently the Director of Geology and Exploration for Endeavour Financial Ltd., a financial advisory firm focused on the mineral industry. Prior to joining Endeavour he was a Senior Mining Analyst with Yorkton Securities Inc. in Vancouver. He was trained as a geologist and prior to entering the investment industry held positions of responsibility in the exploration sector with various companies in North America, Europe and the Middle East. In the late 1980s, prior to joining Yorkton, he worked as an independent contractor/consulting geologist based in south-central British Columbia. Mr. Leishman is a graduate of the Royal School of Mines (London) and holds a degree in Mining Geology. He is also a registered member of the Association of Professional Engineers and Geoscientists of British Columbia (1994) and a Fellow of the Geological Association of Canada (1985). In addition, Mr. Leishman is a Director of Terrane Metals Corporation, a Vancouver based company developing the Mt. Milligan mineral deposit in northern British Columbia.
Eduard Epshtein, C.A.
Position: Chief Financial Officer
Mr. Epshtein is a Chartered Accountant with experience in mining exploration and oil and gas public companies. He began his career in the mining group of PricewaterhouseCoopers LLP audit and assurance practice in Vancouver. Mr. Epshtein moved to the mining industry as a controller of four public exploration companies, where he managed financial reporting and Sarbanes-Oxley Act compliance. He is also the Chief Financial Officer of Western Uranium Corporation and Canada Energy Partners Inc.
Hamish Campbell, B. Sc. (Geology), MAusIMM
Position: Vice President Exploration
Mr. Campbell is an independent geological consultant who heads Southern Arc's exploration programs in Indonesia. He is well-known and highly regarded within the Indonesian mineral exploration community. Mr. Campbell is a key contributor to our exploration and acquisition strategies. He has over 23 years of international mineral exploration, including 21 years in Indonesia, speaks Indonesian fluently, and has held mineral exploration positions ranging from Field Geologist to Exploration Manager. He has established and maintained both local and foreign owned mining service companies, designed and implemented exploration programs, along with evaluation and assessment of joint venture and acquisition opportunities. Previously Mr. Campbell was a Director of PT. Jasa Prima Raya (Jakarta), Indonesian Exploration Manager of Golden Valley Mines (Australia) and Senior Geologist of Meekathara Minerals (Australia). Mr. Campbell is a graduate of the University of Canterbury, New Zealand, where he completed a Bachelor of Science degree. He subsequently received a MAusIMM designation from the Australasian Institute of Mining & Metallurgy and is a member of the Indonesian Mining Association.
Robert (Bob) Vidoni, P.Eng.
Position: Vice President Project Management
Bob Vidoni is a registered professional civil and structural engineer who is responsible for project and engineering/technical management of Southern Arc's activities in Indonesia, while also holding the office of Secretary of the Corporation. Until mid-June 2005, when he left to join Southern Arc, Mr. Vidoni was senior engineer with Klohn Crippen Berger Ltd, an engineering consulting firm that is a member of the Louis Berger Group and which is internationally recognized for its work in providing engineering and environmental services in the modern global mining industry through the full mine life-cycle of design, construction, operation, audit and closure. Fluent in eight languages, including Indonesian, Mr. Vidoni has more than 20 years of domestic and international civil engineering and international development experience, including providing engineering input to infrastructure projects related to the mining industry, open cast mining and tailings facilities, as well as international water resource management, structural engineering, rural development and foreign assistance, primarily with Klohn Crippen Berger. Mr. Vidoni has completed detailed engineering assignments for Eskay Creek, Yanacocha, Antamina, Highland Valley, Boliden Westmin Mine (Myra Falls), Kemess, Pinchi Lake, Campbell Lake, Marcopper (post-closure review), Ok Tedi, Britannia and Polaris Mines. His professional experience includes completing projects for Klohn Crippen Berger, PCI Asia, SNC-Lavalin, BC Hydro, Hydrosult, the World Bank, the Asian Development Bank, the Government of Indonesia and the Royal Thai Government.
R. Edward Flood, M. Sc.
Position: Senior Corporate Advisor
A key advisor to Southern Arc, Mr. Flood is a director of Ivanhoe Mines. He has been a member of the Board of Directors of Ivanhoe and held executive positions in the company since its inception in 1994. As the founding president of Ivanhoe, Mr. Flood headed the company's inaugural management team for four years, a period that included the company's high-profile initial stock offering on the Toronto Stock Exchange in 1996, and he helped to guide the establishment of the company as a significant presence in Asia's rapidly expanding mineral exploration and mining sectors during the 1990s. During that time, Ivanhoe initiated successful exploration projects in Southeast Asia and saw the start of production in 1998 at the very successful Monywa Copper Project, a Myanmar-based joint venture in which Ivanhoe holds a 50% interest. Mr. Flood is also a director of Jinshan Mines and Asia Gold, two Asia-focused mining and exploration companies that are closely associated with Ivanhoe Mines. Currently, he is also the managing director of investment banking with Haywood Securities (UK) Limited.