"We give £100,000 worth of RRR shares to MTR and do so at the discounted placing price of 0.42p ! (Already bad for existing shareholders)
Then instead of getting that £100,000 as useful cash we instead accept 1,818,182 MTR shares at 5.5p each when today the MTR SP was 4.75p meaning they are worth approx. £86,363.
Existing shareholders are diluted and we lose approx. £14,000 of value in the swap. How is that in any way good for shareholders?" .............................................
I agree Mr Magic this £100,000 swap of shares with MTR doesn't on the surface look that good a deal for RRR shareholders. Especially when you consider that the MTR price was 0.73p on 22nd January this year and so RRR enter into this £100,000 swap deal after MTR's share price has already 8 bagged to 5.5p. So with the MTR share price now at 4.5p it seems Red Rock might have got spiked with this deal.
An old broker report sir, from Jan 20th, which like all broker reports failed to mention the likely significant increase in total share issue and which in turn was unlikely to be the least bit accurate. The report itself highlighted that there were 241m shares in issue at the time but failed to declare that the company had already requested and been granted authority to issue up to £40,000 of nominal (0.01p) shares (400m) a month earlier at the AGM (Dec 21st). Such an omission is imo unforgiveable.
As we have seen this last week the share issue is now increasing to 392,325,740 shares which is a 62% increase from the share issue published in that broker report. Not just an increase but an increase performed via a discounted placing at 0.42p coincidentally a tenth of the brokers fantastical valuation price target.
The report is useful for seeing a list of the various RRR projects and interests. As any sort of indicator for accurate SP predictions it is, for me, utter fantasy given that it fails to factor in the huge share increases that were authorised at the last AGM.
"Of which they have interest in all 4 lm wells at shoats creek"
As per my post on NCT board, we have been formally told of participation in LM20,21 and 22. 3 wells. We have been told that there are opportunities to participate further but thus far I have not seen any RNS confirming such. If I have missed such an announcement please enlighten me.
AB up for 4 SC wells - from someone at Investor show today:
Sadly no show at the investor show today on the northcote stand but managed a chat with RRR ceo Andrew bell Very upbeat an looking forward to nct releasing figures anytime now for first sale of oil on lm20 and cpr on shoats creek Of which they have interest in all 4 lm wells at shoats creek
this is AIM where regulations are not as stringent the main market in many respects, so you will never get complete clarity imo (RRR is no doubt in your mind the best example)
but looks like they plan a 3rd drill participation in 2016 from their RNS you highlight....they certainly won't decide until 21/22 are completed....you could ask Andrew Bell, you don't have to believe his answer, lol?
"4) After completion of the Lutcher Moore #22 well, Northcote also has right of first refusal to additional 20.0% WI and 14.4% NRI in Frio if RRR does not participate for any reason.
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