After reading your post Col, my brain has frozen and I've somehow ended up nude.
I get what you mean, and I do feel it is a tricky scenario for some of us PIs to digest. Well, it is for me anyway, but if I'm correct (which I hope is the case), I see the cash equation as a bit like a turbo-charged engine, whereby a percentage of the money keeps getting re-circulated from the lender with the large holding back to BEM, no matter whether the sp is high or low. The Company will continue to receive regular funding down the line for 24 months, i.e. the monthly settlement tranches, beginning from last July, and as regards to the amounts, this depends on whether the sp is above or below the benchmark price of 8.33p. Of course, it is all quite vague as to the specific percentages, perhaps purposefully so, but Clive is a money man, so we must trust that he has done the correct thing for the Company. What happens after the 24 months is up is another question.
I find the whole thing quite difficult to ponder without my releasing a large amount of drool, so I intend not to think on it further. Us PIs just simply won't ever know the finer details Col.
Taken from the Subscription RNS of 10 July 2013:
"In no event would a decline in the Company's share price result in any increase in the number of Ordinary Shares received by Lanstead or any other advantage accruing to Lanstead."
Hope your good Eric,i've missed your posts,you remind me of a poster called mineshare as he was always shooting from the Hip and good to read.Enough of that,as Clive would say. Well to the point in question,it's pretty much like a "Placing at said price" whereas said shares are bought for a said price,and to be fair the buyer can sell (par contract if they wish) back into the market to recover an agreed discount which was set out in the percentage discount to the market price ......you get the drift. Basically my point is this deal pays back x amount to BEM dependant on the share price.the target price was about 6p by memory and they (the lender) can gain 25%(of the Co.)......probably why the share price is about 4.5p...(25% of 6 is 4.5).........Again,Basically my point is ..However they can pay less for the shares the lower the price goes unlike a "Placing at said price",so the final money raised is unknown....For the investor.So basically a "placing" of 4.5p everyone knows where they stand. Got that was hard work,lol.........However ,Yes ,there is a flip side,the Co. can get advanced and money pours into BEM and the Lender has to pay more there not going mind that because they can off-load at a higher price .....More to the point....sell shares to lower the price,whens monies buying in ,they can sell at higher . So like a placing at 4.5p !!.......... Christ if you actually understand that can you explain it to me.lol...........regards Eric........I make you laugh later...Col
What do you know after the financing deal? The deposit is still there Col, and Kallak remains a designated ANI. News of a licence to mine the deposit, any deposit for that matter, is of course transformational, given time for the markets to reflect the positive change in the company's circumstances. There are still a lowish amount of shares in issue here, so a large upside should eventually come, especially once the markets turn for the better and the natural resource industry is back in favour, with new investors recognising the gravity of having a significant mineable asset in a stable country, with the necessary mining licence in place to boot.
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