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Member Info for MrMagic

Member Since: Mon, 13th Jun 2011

Number of Share Chat Posts (all time): 7,406
Number of Share Chat Posts (last 30 days): 152

Last Posted: Tue 21:53

Post Distribution over the last 30 days

Tue 21:53

lol yes it was posted and it was discussed, just go back a few pages. Bottom line for me was that any such research which failed to make any attempt to forecast the number of shares likely to be in issue within the time period they expected to be able to realise value from assets, is not worth the paper it is written on. The report didn't even factor in the 450m shares that RRR had already stated it wanted authority to issue (2nd Oct). Add those shares in and the 0.63p drops to 0.52p in a flash. Then of course factor in whatever shares RRR want to issue in 2015 which we will presumably be notified of at the coming AGM. I'd love to see a thorough valuation by one of these companies.
Tue 19:11

Looks like I was wrong.
Tue 16:50

an RNS tonight. Let's see if I was right.
Tue 16:01

Hmmm no comments on the various stages of the deal.

Anyone out there got experienced knowledge of the normal stages of an asset sale deal, starting from initial proposal / Letter Of Intent?
Tue 14:05

It's going to be end of Nov before NMC complete their deal with the 11% shareholder which appears to be a pre-requisite to NMC buying RRR's 50%. At present, all we have is a Letter Of Intent. Others more knowledgeable than I can confirm, but as far as I know an LOI is not a formal offer or definitive agreement. So I assume a formal offer has to be made and the associated transactions/documents and legalities need to be worked through before NMC complete with us. If my understanding here is incorrect then please correct me.

My understanding comes from what past RNSs have stated. For example the original Greenland/NAMA deal RNS stated that RRR had received "an Offer" from IMP but that "there can be no assurance that the parties will enter into a definitive agreement". So even with an Offer present, there was still the milestone of a "definitive agreement" to be reached.

In July 2012 RRR received "a proposal" from Ashmont Resources which was "in the form of a Letter of Intent" but which was "subject to due diligence and definitive agreement". Just as with the Greenland deal, the Ashmont RNS stated "There can be no certainty that the parties will enter into a definitive contract". A later update on the deal stated "the due diligence stage has been completed . . . and the parties are in the process of negotiating to enter into a definitive agreement"

So my laymans view suggests the chain of events is something like:

Proposal/LOI ===> Due Diligence ==> Negotiation ==> Offer/Definitive Agreement ==> Legal paperwork ==> Money transfer

This is probably simplistic but it's all I have to go on at the moment.

In some ways it doesn't matter exactly when the deal completes just so long as it eventually does. However I'm having a very hard time believing any suggestions that it will complete this side of Christmas. My guess therefore is that before we reach that point we will first get to see the latest end of year Final Results from the company and we'll likely also get to see the circular for the next AGM where we will be able to see the resolution proposals for how many additional shares AB wants to create in 2015. Both of these will be good indicators of where we are heading imo.

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