The GM Is at 3pm so we may be given the outcome after trading. You may find that the SP next friday will move fast before 4:30. This will be past as it makes sense to us share holder's to be cash positive to fund are other projects like Picachos and Gumanga that are great assets to have. Glad we kept hold of Picachos. They said that after this transaction HER will be cash positive and will focus on there other assets.
Hanging on by their toe nails. Big coup with the sale of one of their properties for $10M which is going to wing them on their way for the next year. Its notable that they pulled a deal which gave them a residual 1% of the smelter out put on production. All in their deal was much much shaper than the GS give away of HER. Also the development of the sold ore reserve is frankly skinny and hence the deal they have pulled is excellent value for Golden Rim as is the steal from us of HER.
Clearly GR have no intention to mine. They will hold us as they anticipate a recovery in metal markets and then sell us on .......... hence they wouldn't have given us a residual value which would get in the way of a future sell for cash. But when they sell they will retain a tribute on product sold.
If GS had of gone to shareholders for funds when he arrived things would have been very different. But in my opinion HER was marked for GR from out set as a play chip.
One last thought on GR is that the sp is 0.005 Aus$ and Sprott have recently taken a decent position.
Sprott is a Canadian Mining Investment House I follow and for whom I have immense respect for their ability to pick a winner.
This deal as per the RNS will proceed in 'good faith' the face of all these other requirements. So there is is determination on both side to get this done. Not denying that these things don't need to happen, but if there is a 'will there is a way'. Now, there is nothing to suggest anything contrary to this...hence my point of why the doubt?
Is it a coincidence that HER ended up 27% and GMR ends up 25%? Looks like they are positive it will be passed next week and finalised. Going to be interesting next week as we move closer to the GM and the 28 day window.
there are three (3) different General Meetings which will/should take place in the next 5 weeks or so: (partial repeat from my earlier post, and I know it might be confusing...and again: this is all my interpretation of the contents of RNS's and the likes)
1) HERENCIA General meeting ("HER GM") which will be held on June 3rd - Shareholders of Herencia will be asked to vote a single resolution: approval to proceed with the disposal of Paguanta to Golden Rim. - Us agreeing to proceed, does NOT mean the deal is done.
2) GOLDEN RIM General Meeting ("GMR GM") - NOT yet announced. The Australian regulations oblige a listed company to announce such GM at least 28 days before - My guess is they will announce this GM mid next week. Anyhow, since no announcement is made yet (as far as I can see) that means the GMR GM will not happen before June 23rd. - Is needed to get approval from their shareholders to proceed with the purchase of Paguanta. Pre-requisite to execute the Transaction.
3) HERENCIA Annual General Meeting ("HER AGM") - Normally happens end of June and preceded by an Annual report early June - NOT yet announced - Some of the resolutions shareholders will be asked to vote on are a) right to convert loans into shares by Lind & Oriental Darius (b) whitewash them of the obligation to make an open offer for all other shares (as both could get more than 30% of HER's shares). Less focus on that now... nevertheless important.
So, where the time lag is coming from? Well, there's a few of those...
- 28 days after the announcements (9th and 10th May) the exclusivity for Golden Rim on Paguanta lapses : approx. 07/06 - Hence, it is likely (if all goes well: like DD completed) that a Formal agreement is signed between HER BoD and GMR BoD on or around June 7th. - Signing that Formal Agreement does NOT mean that the deal IS done. Shareholders on the GMR GM still have to approve, prior to the Transaction itself. - Signing the Formal Agreement DOES mean HER will get an additional $100K. some here call it 'Tranche-2' ... its actually the 'Further Deposit" in GMR's announcement of 10/05. $100K, that's it. - GMR Board has to approve as well, but that (I believe) is a formality. - After the Formal Agreement is signed AND following the GMR GM (earliest June 23rd) + max 5 days both parties will (or could) execute the Transaction. That is where the property "Paguanta " is exchanged for another $1.28M. Which would thus be early July
... but all of this is based on a positive evolution. mainly driven by Golden Rim's DD. If that is not satisfactory. all else is irrelevant.
The $100K of the "Further Deposit" is likely spent on the 2nd Tranche of the current Option Payment for Picachos, which was to be paid approx. 09/05 + 21 days. Money in, money out. Balance for June: $0.
how do we get to early July then, and the 'huge' amount of $1.28M?
'outcome of GMR's GM being one of those to look out for. and of course results of their DD. to longer it takes before any of those two is communicated... the lower the sp will go, IMO, as the uncertainty of HER's short term survivability will be more and more at risk.'
Don't understand your post, on what basis are you stating there will be a time lag and fall in SP following GM? The agreement is pretty robust - within 28 days - this is about a week after AGM, so can't see any basis for this...
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