Be honest here. The big play was the Manica tailings project, massive in ambition and scope. Also, this was the hype JN was playing on. So why did we not proceed? Don't try and tell me it was for a 40% profit on initial investment. We couldn't get funding without massive dilution, simple as that. So JN sells rather than dilute shareholders to high heaven. If that is the rationale behind the decision then so be it. As other posters have mentioned, we have a producing gold mine and a wad of cash. That is a good, no, damn good position to be in. I still believe shareholders are gonna get a special dividend out of that. Jan might not be to everyone's taste but Imo, I'm happy to have him on my side.
the valuation of this stock is so cheap at the moment due to the Chepica hiccups (mainly down to bad luck). Methinks, Chepica alone could warrant a market cap of £70m if things run smoothly there, for a sustained period, as the markets will then grow in confidence. Now we have a nice wad of cash coming in and no dilution. I'd imagine there are some distressed sellers out there with great assets. Who's to say we wont buy a mine not too similar to Manica thats up and running.
Xtract Resources is selling its 100% interest in Explorator Limitada ("Explorator"), the entity which holds title to the Manica mining licence 3990C (the "Manica Licence") to the Purchasers at completion
Terms of the Transaction
In the event that the Transaction does not proceed to Completion for any reason, the Group will continue to maintain its ownership of the Manica Licence and work will continue on the mine at Fair Bride and the Alluvial Gold JV Project, in accordance with the existing project timelines.
In other words Nexus Capital Limited ("Nexus") and Mineral Technologies International Limited ("MTI") are buying the lot so why would they want a JV partner when they could make far more money doing it all themselves .
Sax, I suspect things will move much faster this time around, expect a tax application be submitted promptly and completion around 4 months time.
That will ensure any processing is perfectly timed for the new company to take full benefit. Monies will no doubt be paid in full once all is done and dusted.
Thing is there's been several large buys into the last couple days of trading, knowing XTR someone knows something and I doubt it is a punt investment, time will tell, I suspect it will be a good JV of sorts that is nearing completion, promptly followed by JN's resignation, which as only a partner on a JV will not cause any downward pressure on price.
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