I've been closely watching DNS lately, and bought in during July after in started its rise from the beginning of that month. It's gone from 3.2c to 5.8c since then.
I think the mention of a meeting due at the end of August is important. This particular part of their last 4th Quarter report at end of July could be the reason for the interest:-
As reported in the March 2002 Quarterly Report, the settlement of the documents required to formalise Danae's interest in the Zarmitan Gold Project experienced further delays in April, following the Uzbek Government's decision to liquidate one the two Uzbek partners to the proposed joint venture.
The change involves the entity Uzalmazzoloto, to be replaced by Navoi Mining and Metallurgical Combine (Uzbek State Mining Company). Navoi is the largest producer of gold (approx. 80 tonne) and uranium (approx. 2,000 tonne) in Uzbekistan, and employs approx. 60,000 people, operating from five major and several minor centres. This change was officially recognised in a Decree of the government issued at the end of April 2002, and provided Navoi with a two month period in which to effect the transfer of assets from Uzalmazzaloto to Navoi. This transfer process was completed by the end of June 2002.
Danae held an initial meeting with the senior management of Navoi in mid June 2002 and arranged to meet again once Navoi had fully reviewed the preliminary feasibility study on Danae's plan to develop the Zarmitan project, and had fully reviewed the draft joint venture agreement and associated documents, being the draft decrees and charter fund arrangements.
In early June, the Uzbek Government released a general Decree nominating a number of projects seen as a priority for development. The Zarmitan project was one of the projects highlighted, adding further confidence that the matter is to be completed in the near future.
A recent meeting with the Head of Navoi, Mr N Kurchesky, has confirmed that a further meeting will be held with the senior management of Navoi in late August to discuss the proposed development strategy, and formal documentation. A small technical team of relevant specialists in geology, mining, and processing will represent Danae at this meeting, in addition to corporate and legal representatives to address documentation.
Other meetings held during the quarter under review included several meetings with the Governor of the Samarkand Region (in which the Zarmitan project is located), who remains particularly interested and supportive. The Zarmitan project will be the largest single development in the region, which is the second largest province in Uzbekistan. Meetings were also held with the Head of the Department of Foreign Investments, and the Deputy Prime Minister who is designated as the minister in charge of the Zarmitan project for the government. Each of these meetings saw a positive reaction to the development of the project and for the contribution to be made by Danae and its major shareholder, the Multiplex Group (who are themselves well known and highly regarded in Uzbekistan).
DNS Price at posting:
0.0¢ Sentiment: None Disclosure: Held