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Thursday, August 18, 2011

[CPSI NewsWire: Prophecy Discovers Coal Near Ulaan Ovoo]

CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSL License Holder. To trade ASX and international stocks, feel free to contact me at mogi@cpsinternational.mn or +976-99996779.

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Close: Mongolia Related ASX Listed Companies, August 17, 2011

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VOR

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HUN

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HAR

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AKM

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BDI

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 85,000

CEO

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 25,277,624

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RIO

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BHP

 39.820  Up

 0.390

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Source: asx.com.au

 

Prophecy Makes New Coal Discovery 17 km From Its Ulaan Ovoo Coal Mine in Mongolia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 17, 2011) - Prophecy Coal Corp. ("Prophecy") (TSX VENTURE:PCY)(OTCQX:PRPCF)(FRANKFURT:1P2) (the "Company") announces today that it has intercepted a 19-meter-thickness coal seam at the newly acquired Ilch Khujirt property ("Ilch"). The 4,773-hectare Ilch property is located 17 km northeast of Prophecy's producing Ulaan Ovoo coal mine. It is contiguous to Prophecy's existing exploration license covering 7,392 hectares.

Prophecy Drilled Hole RHJ-11-01 on Ilch and encountered the following coal seams:

Depth (m)

Gross Seam Thickness (m)

Net Thickness (m)

41.2

3.0

3.0

48.5

0.5

0.5

69.3

19.4

15.0

Assay results (Air Dried Basis) of the coal core are – inherent moisture 20.96%, ash 14.52%, volatile matter 29.83%, fixed carbon 34.69%, calorific value 5,130 kcal/kg and total sulfur 0.35%. These are preliminary results because core recovery was poor and additional drilling is needed. This license was considered prospective for coal as is Prophecy's adjacent Khujirt license. Due to its shallow nature, the coal seam has the potential to be mineable. This new information is being reviewed and additional surface mapping will be performed to plan additional drilling.

Prophecy has the right to acquire 100% ownership of Ilch for US $2 million within the first year, or US $4 million in the second year after the agreement signing (see the news release of May 4, 2011). Drill Hole RHJ-11-01 confirmed the presence of coal, provided coal for assay, and provides information to plan future exploration.

John Lee, CEO and Chairman of Prophecy Coal Corporation says "We believe through systematic exploration, there exists great potential to discover additional coal seams of minable depths in the surroundings of Ulaan Ovoo mine."

Link to release

 

IE up 20% in last 3 days.

Ivanhoe Energy shares up on Mongolia drilling success

BANGALORE (Reuters) - Canadian heavy oil producer Ivanhoe Energy Inc (IE.TO) said it intends to drill two wells at its Nyalga Block XVI in Mongolia, with the option to drill up to three additional wells in an initial exploratory program, sending its shares up as much as 12 percent on Tuesday morning.

The company, which also has operations in Canada, the United States, Ecuador and China, said it spudded its first exploration well on the block on August 13.

The Calgary, Alberta-based company's shares were trading up about 7 percent at C$1.75 on Tuesday morning making it one of the top percentage gainers on the Toronto Stock Exchange.

Link to article

Link IE release

 

TVN Corporation shares soar on Mongolian coal results, places A$3.6m for JORC Resource

August 16 (Proactive Investors Australia) TVN Corporation (ASX: TVN) shares have soared 17% to $0.055 in early morning trade, on the back of the full coal drilling results from the Nuurst Thermal Coal Project in Mongolia.

The coal seam development has now been extended to over 1.6 kilometres, with a third significant 102.6 metre coal sequence intercepted.

The cumulative down hole coal seam thickness is 81.4 metres thick.

These results follow hot on the heels from the 192 metres thick coal sequence announced at the end of last month, which has multiple seams including a single seam of a substantial 115.5 metres thick.

To continue to progress the project, TVN Corporation has also placed 90 million shares at $0.04 to raise A$3.6 million, to accelerate exploration targeting a JORC Resource.

The company will also use the funds to review the acquisition of further coking and thermal coal opportunities in Mongolia.

Whilst the acquisition of Nuurst does not require shareholder approval, it is subject to completion of due diligence which is currently being progressed by the company. Accordingly, completion will occur in due course.

What has helped spark the investor interest is the exploration target at Nuurst of 50 to 100 million tonnes assumed a coal thickness of just eight metres.

The project is also strategically located six kilometres from existing rail infrastructure, providing low cost access to the key coal export markets of China, South Korea and Japan.

What is so fascinating about exploration and geological understanding in Mongolia is the lack of it, with an estimation that only three quarters of the country has been mapped to a scale of 1:200,000.

The underdeveloped and general lack of infrastructure in the country won't present much of a problem for TVN Corporation at this exploration stage.

Boosting the coal possibilities even higher for Mongolian focused companies, the country has coal reserves estimated at over 150 billion tonnes.

Link to article

Link to TVN full drill results release

Link to TVN placement release

 

VOR: COMMENCEMENT OF OPTION TRADING – VOROA CLASS

August 17, Voyager Resources Limited (ASX:VOR) --

The  Company would like to advise the market that the options issued pursuant to the shareholders meeting held on 29 July 2011 have commenced trading on the ASX under the code “VOROA”.

The options are exercisable at 6 cents each and expire on 30 June 2015.

A top 20 and range of holders report has also been released today to the market.

Link to release

Top 20 Optionholders and Distribution Schedule - VOROA – August 17

 

Export credit agencies scope out Oyu Tolgoi

US Ex-Im, EFIC and MIGA continue due diligence processes as they consider joining project finance lenders on Ivanhoe’s Mongolian mega mine.

August 17 (Trade Finance) The Export-Import Bank of the United States (US Ex-Im), Australian export credit agency EFIC and the Multilateral Investment Guarantee Agency (MIGA) are undergoing due diligence checks on Ivanhoe Mines’ Oyu Tolgoi project in Mongolia as they consider supporting the $4 billion project finance.These parties may join an initial core group of MLAs comprising the EBRD, IFC, Export Development...

Link to article (subscription needed)

 

Forum on Tavantolgoi scheduled

August 17 (news.mn) A forum on the Tavantolgoi coal deposit will be held tomorrow (Thursday, August 18) in Ulaanbaatar. The public is invited to participate. Entitled “How to Use Tavantolgoi in an Efficient Way,” the forum will be held at the Civil Hall at the Presidential Office (Government House, left side, Door 373). For more information, phone (+976) 263 489, e-mail irgen@president.mn, or visit the website www.president.mn/forum.

Link to article

 

Ch.Khurelbaatar: State Property Committee will represent Mongolian in the Tavantolgoi project

August 17 (business-mongolia.com, source: unspecified) Ch.Khurelbaatar, Chief of the Cabinet Office and Member of the government’s working group on Tavantolgoi investment agreement was interviewed regarding the TT’s IA.

Q: How is the discussing going with the investor companies? What step is the investment agreement at?

Ch.Khurelbaatar: The working group had made a draft and it is already discussed in the Cabinet meeting and the materials are now sent to the National Security Council. After that the draft will go through the Cabinet and will be discussed once again.

Q: When will the meeting of the National Security Council are held? Does the working group have any information on this?

Ch.Khurelbaatar: For now, we haven’t received any information on that.

Q: The last Government’s official source says that the investor companies for Tavantolgoi’s western block were chosen as it states 40% for Chinese Shenhua, 24% for American Peabody and 36% for Russian and Mongolian Consortium. Why were the Japanese and South Korean companies were excluded and when?

Ch.Khurelbaatar: We have not made any decisions to exclude Japanese and South Korean companies. In fact, Japanese Mitsui came in with Shenhua as a joint consortium and South Korea made bids with Russia. We expected better bid from South Korea and Japan which could be about building steel production factory in Mongolia but they were against that. In another words, I have to say that the bid was not good.

Q: So what did Chinese Shenhua, American Peabody and Russian Railway promise?

Ch.Khurelbaatar: Shenhua will sell thermal coal as well as the coking coal. Peabody’s technology and production is important to us and Russian Railway is very important for us in terms of coal transportation.

Q: Where did the Mongolian Company came out from? The Japanese and South Korean companies must wonder about that because Mongolian company did not take part in the earlier stages of the tender bid?

Ch.Khurelbaatar: First of all, during the early stages of the tender bid we announced that Resolution #39 of the Parliament states that Mongolian company must take part in the tender bid. The company that will represent Mongolia should be state owned. We also told the bidders that State Property Committee will be the representative of that. Therefore it is nothing to be surprised about.

Secondly, the Resolution #30 of the Parliament also states that during the tender bid process companies are able to move away from one consortium or even merge together so the tender bid process is all going under the terms of the law.

Q: So the Mongolian company that will represent Mongolia will be Erdenes MGL?

Ch.Khurelbaatar: You can say that State Property Committee will represent.

Q: The investor sides are to pay initial payment of USD 1 billion to the Mongolian Government? What is the circumstance?

Ch.Khurelbaatar: USD 500 million will be paid as non returnable investment and USD 500 will be paid as prepayments. Mongolian company is also payable of its investments in according to its percentage of share.

Link to article

 

Korean Cooperation in Tavantolgoi will describe Mongolia-South Korea Relations

August 17 (business-mongolia.com, source: unspecified) Jon il, South Korean Ambassador to Mongolia talks about the upcoming visit of the South Korean President to Mongolia and also the Tavantolgoi coking coal project.

Q: South Korean Presidents have visited Mongolia in 1999 and 2006 previously. President Lee Myung-bak will visit Mongolia this time and could you talk about the purpose of this visit?

Ambassador: It is the third time that South Korean President is paying official visit to Mongolia. South Korea and Mongolia has 21 years of diplomatic relations and it rapidly changing and improving and the President’s visit will prove that. South Korea celebrated its 66th anniversary of Independence few days ago and we tried to improve our relations with most of the Asian countries since 1990. As you can see that our faces are similar to Mongolians and we believe that Mongolia is one of our neighbors and a good friend also.

Q: What is the importance of the President’s visit to Mongolia and in what sectors should the two countries improve the relations?

Ambassador: Investors believe that Mongolian market is small with only 3 million people and it is difficult to invest in that. Larger corporations will visit Mongolia in accordance with the President’s visit and will look for a way to invest in Mongolia. A business forum will be held soon. The size of the market is important but we should look at the opportunity in the future because in 10-20 years we will see the long term development.

The most important thing of today is that we look at what Mongolia needs. We could improve cooperation on technology, educated labor force and management. Large economic groups will come to Mongolia to participate in the economic forum and opportunities will be provided for Mongolians to discuss matters with them in terms of increasing investment. President Lee Myung-bak visited Mongolia in 2005 when he was Mayor of Seoul. He will be able to see how fast Mongolia has grown and developed in space of 6 years. The president will also be surprised about how Mongolian youths can speak Korean so good.

Q: 17 consortiums took part in the tender bid for Tavantolgoi. Could you talk more about the South Korean consortium that made bids for Tavantolgoi.

Ambassador: We started to prepare for this project 10 years ago. Total of 10 companies make up the South Korean consortium and it is lead by Kores and includes large companies such as: Posko (Steel Factory), LG, Daewoo International, Hanjon, STX Energy. Kores has opened its branch in Mongolia. Mongolia should not think that South Korea is just a steel producing country but also we have great infrastructure and South Korea has grown into one of the most developed countries in a short space of time.

Q: South Korea was exluded from the names that will develop Tavantolgoi. What is your opinion on that?

Ambassador: The Government said that was not the final decision and there was no reason to exclude us. We are working with Russia and Japan to form a joint consortium as offered by the Mongolian Government. I hope the next Parliament session will solve the matter and choose South Korea as one of the Tavantolgoi’s developers and investors. Other large corporations have shown interest in building the railways and factories that are necessary to develop the huge deposit. South Korean media has already started to talk about the Tavantolgoi project and they are saying that this project will have important factor in improving the two counties relations.

Q: The working group on Tavantolgoi said that South Korea did not offer the new technologies and new factories that you have promised in the earlier stages of the tender bid? Isn’t it why South Korea was excluded from the list?

Ambassador: It is wrong information that South Korean consortium did not offer new technologies and new factories. It is in fact the opposite. I think that some people don’t want South Korea to win the tender bid. That is why the exact and detailed information is not provided publicly.

Link to article

 

FIRST DEPUTY PREMIER AND NEW RAILWAYS

August 17, Ulaanbaatar, Mongolia /MONTSAME/ The First Deputy Premier N.Altankhuyag received on Wednesday 17th August authorities of the Ulaanbaatar Railway Mongolia-Russia joint venture and an advisory group led by the McKinsey & Company, Inc, a global management consulting firm.

He has got acquainted with a draft economic and technical justification of the new railways to be constructed in Mongolia. The advisors underlined that the policy of Mongolia on railway drawn up dedicated to the new railways is able to contribute to development of infrastructure and mining sectors, and it would be a tool for distributing minerals extracted in Mongolia to the international market augmenting size of export.

Railways in route Dalanzdgad--Tavantolgoi--Sainshand--Baruun-Urt--Choibalsan are planned to be constructed in the first turn through a state policy on railway transportation approved by a parliamentary resolution which was issued on 24th June of 2010. Thus, the advisors have pointed out it is effective to implement the project of railways together with second phase of the policy.

"It may reduce expenses for constructing the basic structure and easy to attract investments," they said, adding that it is calculated money of about USD 5.5 billion is required for the railway project.

The First Deputy Premier asked them about support that should be rendered from the cabinet of Mongolia. In response, the advisors said the project needs a governmental investment of about USD 50 million. N.Altankhuyag promised to positively tackle the financial matter, and to convey it to the cabinet.

Present at the meeting were Ch.Khurelbaatar, head of the Cabinet Secretariat of Government; Kh.Battulga, the Minister of Road, Transportation, Construction and Urban Development; and other officials.

Link to article

 

Mongolia to Build Refineries to Ease Chronic Fuel Shortages

August 16 (oilprice.com) Mongolia, which is forced to import virtually all of its refined oil products and frequently faces chronic fuel shortages, is to begin building an oil refinery early next year in an effort to meet domestic demand and reduce dependence on neighboring Russia for energy supplies.

Two months ago Mongolian President Tsakhia Elbegdorj proposed to build an oil refinery, emphasizing its importance for Mongolia, infomongolia.com reported.

Construction on the refinery began on 11 August in the southeastern city of Saishand in Dornogobi province in cooperation with Mon L Gas LLC. The Saishand refinery will process 5,000 tons of crude oil per year. The Mongolian government granted SODMONGOL a license to construct the facility in 2008. Mongolia’s domestic oil consumption is currently less than one million tons per year.

At present Mongolia receives its fuel supplies from Russia, but since April imports have been curtailed because of Russia's soaring domestic demand. Accordingly, the Mongolian government eventually intends to construct a total of three refineries.

The second will be located in Darkhan-Uul. Built with the cooperation of Mongol Seku LLC, the Darkhan-Uul refinery will have an annual processing capacity of 200,000 tons per year. The third, to be built in Zuunbayan in Dornogobi province, is slated to have an annual production capacity of 300,000 tons.

Link to article

 

Parliament to consider new boundaries for Bogdkhan national reserve

August 17 (news.mn) Parliament will consider drawing new boundaries for the Bogdkhan national reserve during the autumn session.

Some MPs have already worked out a draft resolution that would eliminate the following valleys from the reserve: Zaisan, Nuht , Artsat, Tashgai, Zalaat, and Ikh Tenger.

The Government has already constructed buildings in Zaisan valley. If the Government cannot follow the regulations governing the reserve, say the MPs, how can citizens be expected to? The MPs say they only want to eliminate areas from the reserve that have already been developed. This would require making adjustments to the reserve’s boundaries.

They also say pollution from Ulaanbaatar has reached dangerous levels, and many citizens, NGOs, and Government organizations are interested in living and working in the reserve. The MPs also say people already living in the reserve, in areas such as Yarmag, Zaisan, and Tumur Zam should be allowed to own the land they occupy.

Link to article

 

NEW CEMENT FACTORY TO AID MONGOLIA’S DEVELOPMENT

August 16 (UB Post) Foundations were laid on 13th July for a factory with the potential to produce one million tons of cement per year using the dry method. The factory is being built as an extension of Cement and gypsum factory in Khutul city. They hope the new technology (dry method) will increase the facility 4 and 5 times and decrease the product cost to buy by approximately 25%. This will help to hold then decrease the market price of building material.

Basement” company is the investor of this extension work. General Manager of this project Ts.Jargal, “Basement” company’s executive director Enkhbayar, president of the Trade Development Bank Randolph Koppa, president of China’s Jiangsu Pengfei group Wan -main manufacturer of equipment and building material, leader of consultant company R.Ambrosi, governor of Selenge province S.Enkhtaivan and other employees of the factory participated in this event. General manager of the project said “The age of building and creation has started in Mongolia. Several cement factories have been built, so competition will increase. This production is the main measure of development. Thus, this work is a big contribution in the development of Mongolia.

The budget of the project is 100 million USD and we have ordered some equipment already”. Mr.Ambrosisaid “Using the dry method is not only increasing productivity, it will also decrease pollution. I believe we will succeed together”. President of the Trade Development Bank (TDB) Randolph Koppa added “ The Trade Development Bank is one of the old banks. We have been working with Khutul’s factory since TDBank was founded. Cement is the main raw material to improve substructure, roads and buildings. We have cooperated only with this factory, now we can cooperate with the local people because we have opened a branch of our bank in Khutul city”

Link to article

 

Biden's trip to China, Mongolia, Japan part of Asian strategy: White House

WASHINGTON, Aug. 15 (Xinhua) -- U.S. Vice President Joe Biden on Tuesday starts his visits to China, Mongolia and Japan as part of the Obama administration's efforts to "renew and intensify" the U.S. role in Asia, a senior White House official said on Monday.

"This trip that starts tomorrow is part of the administration's dedicated effort over the last two-and-a-half years to renew and intensify the U.S. role in Asia," Biden's national security advisor Antony Blinken said.

"We've pursued a consistent strategy set out by President Obama to expand our presence and our influence in the region," he told reporters via a conference call, calling the vice president's trip "a reflection of our belief that the United States is a Pacific power whose interests are inextricably linked with Asia's economic security and political order."

Biden's East Asian trip is his first as vice president. Blinken said that during his four-day stay in China, Biden will discuss with Chinese leaders the "full breadth of issues" in the U.S.- China relationship. In his visit to Chengdu, a city in southwestern Sichuan Province, the vice president will give a speech on U.S.-China relations at Sichuan University.

He will also travel to Dujiangyan City in the province, jointly with Chinese Vice President Xi Jinping, where they will visit a high school that was rebuilt following the 2008 earthquake, Blinken said.

Blinken described Biden's visit to Mongolia as "truly historic, " as the last visit of a U.S. vice president to the country was in 1944, when Henry Wallace toured Asia and included a stop in Mongolia.

"Mongolia offers an important example of a successful transition to a strong democracy and a partner with whom we're expanding cooperation in a broad variety of diplomatic, economic and defense areas," Blinken said. "Like China, this visit to Mongolia is a reflection of our broader effort to engage emerging powers as a way to build a secure, prosperous and democratic Asia. "

In his one-day trip, Biden will meet Mongolia's Prime Minister Sukhbaatar Batbold and President Tsakhia Elbegdorj, who met President Obama at his Oval Office during a June visit.

Blinken said that Biden visits Japan to "underscore that the U. S.-Japan alliance is strong."

"And, of course, Japan is an ally, but also a friend," Blinken said. "And the U.S. stands with and supports Japan and the Japanese people as they recover from the March earthquake, tsunami and nuclear emergency."

During his two-day stay, Biden will meet Prime Minister Naoto Kan and visit the northeastern city of Sendai, where American forces took the lead in reopening the airport after the earthquake, Blinken said.

"The economic side of the trip obviously is very important," said Lael Brainard, under secretary of Treasury for international affairs.

He noted that the trip provides an opportunity for the vice president to "advance American economic interests in the dynamic region in Asia broadly."

"Of course, our trade and investment ties with China in particular are growing rapidly in both directions and we expect this to continue to be a vitally important trade investment relationship in terms of our broader jobs and exports agenda," he added.

Link to article

 

Oxford business group teams up with foreign investment and foreign trade agency for first-time country report

August 16 (UB Post) Oxford Business Group (OBG), a global publishing, research and consultancy company is expanding its reach across Asia as it prepares to launch a first-time report on Mongolia. OBG’s editorial and research team will pool resources with the Foreign Investment and Foreign Trade Agency (FIFTA) to produce The Report: Mongolia 2012, which is set to provide groundbreaking coverage of the country’s economic activity and investment opportunities. FIFTA is a government agency tasked with promoting and facilitating foreign direct investment and trade in Mongolia.

The agency works to enhance Mongolia’s investment environment and support industry in its development while also providing information and matchmaking services for businesses. OBG’s Country Director Anne Delarue said she was delighted to be leading the Group’s new project in Mongolia which is expected to put the country’s important mineral sector in the spotlight. “Mongolia’s significant mineral deposits, together with its proximity to key international economic giants, has put the country on the international investment radar and marked it as one of the most attractive emerging markets in Asia,” she said. “I look forward to exploring how the mineral sector, together with other important areas of growth such as finance, services, industry and infrastructural development, are driving Mongolia’s economic development.” Delarue also highlighted the important contribution she expected FIFTA to make in the research process for OBG’s launch report. “Carefully-planned reforms and measures have put Mongolia on the path to successful and sustainable modernisation,” she said.

“The Foreign Investment and Foreign Trade Agency’s experts have an in-depth understanding of the country’s changing economic landscape and are playing a key role in spearheading Mongolia’s industrial development and export growth. I am delighted to have them on board for our new project as we begin documenting the exciting changes taking place here.” FIFTA’s Vice Chairman Zanabazar Battushig said he was confident OBG’s forthcoming report would bolster Mongolia’s efforts to highlight its development on the international platform. “The Foreign Investment and Foreign Trade Agency recognises the importance of ensuring that Mongolia’s progress in introducing a sound economic policy and creating a more favourable environment for investors is relayed to the global business community,” he said. “I am confident this important publication will fill a vacuum by providing investors with key business intelligence on the significant changes taking place here and look forward to teaming up with Oxford Business Group, which is recognised as being a leader on emerging markets, as it sets out to chart Mongolia’s economic development.”

The Report: Mongolia 2012 will be a vital guide to the many facets of the country, including its macroeconomics, infrastructure, banking and other sectored developments. The forthcoming publication will include a detailed, sector- by-sector guide for foreign investors, alongside a wide range of interviews with the most prominent political, economic and business leaders. The Report: The Mongolia 2012 will be available in print or online.

Link to article

 

Anti-nuclear-waste demonstration planned for Ulaanbaatar

August 16 (news.mn) Young people opposed to the storage of nuclear waste in Mongolia will hold a demonstration in Ulaanbaatar on Wednesday. Three months ago there were reports that the United States and Japan were exploring the possibility of shipping nuclear waste to Mongolia. Both nations have since denied those reports. 

Organizers say the demonstration on Wednesday will be peaceful. It will take place at Sukhbaatar square. Afterwards the demonstrators will gather at Tuul restaurant for a discussion. The demonstrators say they are independent from political parties and coalitions. 

Link to article

 

<Mogi & Friends Fund A/C>

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Mogi & Friends Fund is a tiny fund of A$23K I created in late September with a few friends to put my own (and a few friends’) money where my mouth (just mine) is.

Mogi

 

---

"Mogi" Munkhdul Badral

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CPS International LLC

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CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSL License Holder. To trade ASX and international stocks, feel free to contact me at mogi@cpsinternational.mn or +976-99996779.

 

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CPS Securities, its directors and employees advise that they may hold securities, may have an interest in and/or earn brokerage and other benefits or advantages, either directly or indirectly from client transactions mentioned in correspondence from CPS International.

CPS International advise this email contains general information only and does not include advice. In preparing this communication, CPS International did not take into account the investment objectives, financial situation and particular needs of any person. As with any speculative mining company there are significant risks.

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