Chesy, very happy to be wrong re sp movements in the short term. News flow from here should pick up now as they implement a new strategy. I'm very curious to see how they structure the deal for an income producing asset as are a lot of potential investors I'm sure. As soon as they assure investors that they won't keep coming back to the market with their hat in their hand, then we should see some solid gains. But at what price? This remains to be seen. I've heard it will be a combination of cash and equity. If so I would hope the cash portion will be structured as an earn out instead of an up front payment. This would ensure enough cash on hand to start immediate exploration at the 2nd and 3rd target at Los Calatos and also pay off the party laying claim to Mollacas. OR, this is all part of a plan to show potential suitors that they have options, they can move forward while enhancing value and they don't have to accept the low ball opportunistic offers they've received so far. We could get a reasonable offer for Los Calatos Monday morning... who knows? This is the scenario most seem to be hoping for. I'm patient, I'll add to my position once I see some risk taken off the table.
RE: RE: It
It may be a long play for true value but IMO news that will boost the sp, short term, is just around the corner, it must be to justify the offer price. There is no way they would have taken this strategy if not. Yes there may or may not be more funding but as long as they let us participate like they have done, when not many AIM companies do, then I am happy with that. With the caveat that when we get to take up the offer the sp is above 0.03, which I am confident it will be. However, having said that, I had expected more news at the tail end of last week. 'BOD please don't let us down, show us that you are as clever as you appear to be and this whole play is not a damp squib!.'
Good post theskinny, this is turning into a very long play now, I can't see much movement in the short term and I am concerned with the inevitable funding through equity. 1 they have to buy this near term mine 2. The have to raise funds to put it into production (and how long might that take) 3. Are they intending to start this small scale operation at LC on their own and if so how much is that going to cost. None of these things are going to be cheap to do. All good moves for the long term but in the short term there has to be major dilution surely, or am I missing something? It is going to take more than the BOD throwing a few weeks wages in before I put anymore money in.
This company is a complete joke, yes we go for JV/buy out talks, but we have done so for in excess of one year and have not acheived anything still. The only certainty is dilution and Potluk having no clue what so ever.
With dilution looming I fear we'll be at these levels for a while. Resolution of Mollacas rights could give us a jump but it looks to me that the real catalyst for some SP appreciation, the sale of Los Calatos, is not going to happen. Management appear to be heading down the JV route which they've always said is their preferred option. The last ann was very positive for the long term in my opinion, we're moving forward. Agree the rumour that not only will management buy shares through the first rights offering, but will participate again in the offering to existing shareholders, is a huge vote of confidence. They obviously see great potential and are loading up while they can. Short term however, the SP won't move much until investors see the terms of acquisition for the near term cash flow project, I'd expect some heavy dilution.
was fun while it lasted but now back to where we were. The latest news was positive but I fear we need something far more concrete about a possible deal or cash generation to make any lasting improvement. Its just still all in the future presently and I can see why the SP is where it is. My hope is that the rumour from the EGM and directors buying are related and one day soon we will get the big news we all hope for.
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