History
A shell renamed Magnus pursued Chinese gold joint ventures, pivoted to Uganda in 2007, lost its bulletin board quotation, and by 2008 was selling its main China asset.
2004-2005: Building a China portfolio
The company, then called Gravity Spin Holdings, began in March 2004 by disclosing three non-binding letters of intent for Chinese mining ventures: a silver mine in Guangxi and two gold and copper projects, Jinlong Mountain and Zhamashi, with Brigade 209 ("Team 209"). In May it signed preliminary agreements with Team 209 for a Huidong County property in Sichuan and for Zhamashi in Qinghai. Effective May 4, 2004 it became Magnus International Resources, split its shares 2-for-1, lifted authorised shares to 100,000,000 and began trading as "MGNU".
The Huidong deal became a formal contract in July 2004, creating Long Teng Mining. Magnus had to contribute US$5,000,000 in stages to reach 90%, and give Team 209 company stock, later raised from US$500,000 to US$750,000. The government approved the venture and issued its licence as of September 30, 2004, and an area in Luquan County, Yunnan, was added. In December 2004 Long Teng agreed to buy the Xintaizi mining licence for 2,100,000 RMB.
In 2005 the company moved to acquire Golden River Resources, a route to the Mangshi gold property in Yunnan, and agreed to buy two small permits there for company shares. Xintaizi failed: geologist Dr. Paul Taufen found the gold grades too low, and Team 209 took it over and agreed to pay back 1,500,000 RMB.
2006: Raising money and changing course
In January 2006 the company raised money. President Graham Taylor exercised 800,000 options for $400,000, and 624,500 units at $1.25 brought in $780,625. Taylor was also issued 100,000 Series A preferred shares carrying 1,000 votes each, which gave him voting control.
In March it signed a term sheet for an option on a titanium property in Henan, but dropped it in April after a consultant's report raised concerns about the grain size and the amount of rock to be removed. Instead it agreed to buy a gold licence at Manzhanggang in Qinghai for 3,200,000 RMB. It also placed 668,248 units at $1.60, raising $1,069,196.80, diluting existing holders. The record for Manzhanggang goes quiet afterwards.
2007: A turn to Uganda
Effective May 1, 2007 Magnus bought African Mineral Fields, which held an option on four Uganda gold projects. Its holders received 6 million shares and were to receive non-voting Series B preferred shares that convert to common only as gold resources are declared, starting at 250,000 ounces. The filings differ on whether that was 2,000,000 or 200,000 preferred shares. Magnus also sold 4,750,000 units at $0.40, raising $1,900,000, and paid a $190,000 finder's fee.
In May it agreed to take Team 209's remaining 10% of Longteng by handing over its 90% of the Mangshi venture plus 1 million RMB, ending the Mangshi project. In November, FINRA said the shares would be removed from the OTC bulletin board for a year from November 26, 2007 after three late reports in 24 months. The company asked for a hearing.
2008: Selling Longteng
On May 28, 2008 Magnus agreed to sell its 90% of Long Teng Mining to Lai Jinzang for 21,000,000 yuan in four payments. It had received 7,000,000 yuan (about US$1,000,000) by June 13, 2008. A further 7,000,000 yuan is due on licence renewal, 4,900,000 on transfer of Magnus's 90% and 2,100,000 on transfer of Team 209's 10%. Magnus keeps a 3% royalty on smelted metal and must refund everything within a month if the licence is not renewed.
As of June 13, 2008 the company was based in Vancouver, held its Uganda option through African Mineral Fields, and still had its quotation appeal outstanding. Its auditors' opinions had carried a going-concern warning, and it had no disclosed debt.
Written from the 14 story beats below (2004 to 13 June 2008), which come from the company's own announcements and filings.