Monthly Archives: February 2008

Talon Metals Corp. to acquire new gold Project in Brazil for USD 250,000

Talon Metals Corp.  announced that it has signed a binding Letter of Interest with Sagitario Servicos Minerais S/C Ltda, for the acquisition of a 100% interest in the Barra do Franca Gold Project, which is located in Piaui State in the northeastern region of Brazil.

The BVI-domiciled corporation is planning to prospect the area to assess the potential of the known gold mineralisation as a bulk mineable near surface target. In terms of the agreement, Talon must pay US$15,000 to secure the option on the Project and conduct a due diligence review (this payment has already been made). It will also pay US$85,000 on May 11, 2008, and US$150,000 on February 11,2009 to acquire a 100% interest in the Project. Sagitario will retain a royalty of 1% net smelter return that can be acquired by Talon at any time, through the payment of US$500,000.

Barra do Franca Gold Project will be managed and operated by Brazmin Ltda – a Brazilia-based subsidiary of Talon. The Project is located in the southeastern part of the State of Piaui. The Project is in an area with reasonable infrastructure and consists of an Exploration License of approximately 893 hectares.

Subsequent to the Letter of Interest, Talon has independently applied for and been granted mineral rights to an additional 7,864 hectares in four Exploration Licenses that cover the eastern and western strike extensions to the mineralized zone in the Project. Talon has undertaken further exploration to identify the priority targets in the mineralized zone; the results are expected in March. Talon reserves the right to withdraw from this agreement at any time.

Talon is the holder of 4,935,500 common shares of Brazauro Resources Corporation, and 2,450,000 common shares of Beadell Resources Limited. Total assets of the company make approximately CDN$14 million.

New status update of defaulted loan to BVI-based Newco Group Ltd.

Some weeks ago, the Nevada-based oil and gas company JMG Exploration, Inc. announced termination of the share exchange with British Virgin Islands-registered Newco Group Ltd. The BVI company had failed to repay a $3 million loan and accrued interest that was due December 31, 2007, and the termination was effective from that date.

JMG Exploration has already updated the status of defaulted loan to the BVI company. Now, JMG announced that on February 8 it entered into an extension agreement allowing Newco to repay the loan and accrued interest until April 30, 2008. If the note is not paid by that time, Newco agreed to have the 1,427,684 shares of Iris which secure the loan immediately transferred to JMG as payment in full of the outstanding obligations.

In the current status update, JMG Exploration informed that both companies have also released each other from any liabilities resulting from the failure of the Share Exchange Agreement to be consummated. The US company also reported that the Fellows project was sold effective January 31, 2008, for approximately $385,000.

BVI-registered Yucheng Technologies Limited Reports Record Unaudited Financial Results for the Fourth Quarter and Fiscal Year 2007

Yucheng Technologies Limited, BVI-registered company providing IT and outsourced services to the Chinese banking industry, in the beginning of February has published unaudited financial results for the last three months and fiscal year 2007.

The main highlights of the unaudited report for the fourth quarter 2007 include record growth of consolidated revenue of US$23.5 million, – the 57% increase if compared to the same period of 2006. Gross margin made 37%, compared to 25% of the same period last year; NON-GAAP net income made US$4.3 million, an increase of 50% quarter-over-quarter and 88% year-over-year.

The non-financial records for the last three months of 2007 were increased working relationships with the existing banking clients (i.e. Bank of Shanghai); first-ever contracts with Chinese subsidiaries of foreign banks, to provide Yucheng’s industry leading online banking solutions; further business expansion into the existing top national banking clients, through strong IT solutions.

Yucheng published the following unaudited results of the fiscal year 2007: record consolidated revenue of US$59.6 million, – an increase of 49% if compared to 2006; record consolidated IT solutions and services revenue of US$31.6 million, accounting for 53% of the revenue, an increase of 110% if compared to the results for the year 2006. Gross margin increased to 36% from 28% for fiscal year 2006; record NON-GAAP net income made US$10.5 million, an increase of 72% from the year 2006, and 13% above management’s increased estimate of US$9.3 million.

The BVI company is the wholly-owned subsidiary of China Unistone Acquisition Corporation, which merged with Yucheng in November 2006. China Unistone is a Delaware corporation organized as a public company specifically for the acquiring businesses in China.

BVI-registered UTi Worldwide announces major restructuring plan and cost reduction measures

Shares of BVI registered UTi Worldwide Inc., global integrated logistics and freight forwarding company, fell 12.6% after the company released information about its plans to implement cost reduction measures, and lowered its 2008 adjusted profit forecast. The company has already reorganized its leadership around its freight forwarding and contract logistics and distribution, and decreased its earnings guidance for fiscal 2008. Other measures planned are seven per cent staff reduction, in order to to streamline company’s operations by exiting underperforming businesses, canceling long-term initiatives and realigning corporate and regional functions.

The BVI company explained these measures are needed due to slower than expected revenue growth due to the slowing economy, and the deterioration of underperforming businesses. To reduce costs, UTi Worldwide will exit its retail distribution business in Africa, the distribution operations in America and other underperforming operations which are not the main. The company will also cancel various long-term initiatives, scale back airfreight charters, and loss-bringing contracts. In order to reduce overhead costs, the company will realign corporate and regional functions.

UTi Worldwide said it has also realigned its executive management structure, with Chief Executive Officer Roger MacFarlane also taking on the function of chief operating officer, John S. Hextall becoming president of the global Freight Forwarding operations, William T. Gates becoming president of the global Contract Logistics and Distribution operations, and some other re-appointments.

In the press release, the BVI company said it expects all the above measures to reduce annual operating costs by the amount about $105-110 million, and net revenues – by $30-40 million. Also, cost cuts are expected to reduce annual net revenues by $75 million to $85 million, and boost earnings per share by 21 cents to 28 cents per year. The company expects a pre-tax restructuring charge of about $15-20 million with the above measures.

It was noted by some analysts that restructuring and management reshuffle planned by the company could make UTi more of a buyout target, yet the increased potential of an acquisition makes the stock more appealing.

While some of these measures have already been implemented and will lead to some immediate cost savings, the main financial benefits are expected to be phased in during the first six months of fiscal year 2009. UTi plans to report its results for the 2008 fourth quarter and fiscal year on March 27, 2008.