My humble apologies to " Affe " ..... I just copied and pasted the AGM notes into a folder and do now realise my mistake . The first line starts , Hi 4d4d ........ hence even though " Affe " actually wrote the notes I never made a note of that .... lol ..... sorry " Affe " and thanks 4d4d for pointing that out .... :-) ...... P.S........ have now amended the AGM notes to state " Affe " was the good man who compiled and posted them on the LSE , bb in my notes for XTR folder .
Spacemen, I agree we're looking in good shape with this GOS cash now, and if Chepica does start making upwards of $250k profit from August - it will look very good, whichever step Jan takes next - I have not been here very long, but I am delighted with the way things are going here. By the way, you keep crediting me with the AGM notes, but Affe was the chap who provided the most comprehensive notes so he deserves the credit.
We're in a far better position than most people realise having bought the initial 15% plus 100% of the Mejillones phosphate project in Chile for £1.25 million ( paid for by issuing Polar Star with 500 million XTR shares ) . The outstanding earn in debt stood at US$ 4.65 million as of 12th December 2013 . The instalments are paid quarterly and will be funded from cash-flow from the Mine over 26 instalments . I make that 2 instalments have already been paid through the earn in agreement to buy the remaining 85% ....... please note this 85% earn in outstanding debt is in US dollars and with renegotiation if Polar Star is in financial difficulties there's no reason why Jan Nelson doesn't use the money from the GOS shares sale plus some of the loan money from Yorkville to pay down Polar Star debt completely . When XTR own 100% of the Chepica mines it can negotiate far better terms for loans , if need be , than prior to the Chepica project plus 100% of the Mejillones phosphate project in Chile .
This is what I'd like to read in the next RNS which thanks to " 4d4d " AGM notes should contain an announcement about Polar Star pay down . A time line from the AGM date of a month or so from the 26th June 2014 could be upon us sooner than some think .
I would obviously be pleased with paying down chepica debt quicker, but that said... I think there is more chance the GOS money will be the base for taking on another project. Colin has said mining projects have never been cheaper, and there must be ones that they would take on immediately if they could fund it safely... so perhaps the GOS sale was a key part of the funding jigsaw for a new project. I like Jan, as he displays a great balance between being careful/conservative but he also displays a clear (realistic) bullish streak - hence comments about 200,000 oz within 5 years - a perfect CEO really - but one that is currently working for free! I know Jan doesnt like debt, but theres no choice given Xtract's starting point and I do think another deal must be getting closer. The great thing about Xtract is that, even if no new deal is forthcoming in the short term, there's still plenty to get excited about - Chepica and a potential world class phosphate deposit is more than enough to justify the market cap.
It has been tricky buying which makes me suspect something afoot. Also note that the spread was .22/.23 yesterday when I bought. Which incidentally is why I shifted off my 0.20 buy order. Never actually seen the spread so low on such thin volume.
I'd be happy with Chepica paydown - hope you are right. Thinking on the subject borrowing money from a more conventional source than Yorkville will be easier when Chepica is profitable and generating cash and debts may be cleared down. Think you are right now I think about it - if the GOS cash clears the Chepica debt then that leaves cash flow to pay Polar Star and buy into Chepica much more open and should.... leave plenty to do some light drilling to increase LOM and channeling to prove up mejillones.
I am not naive enough to expect Chepica to be uber profitable at first (will need to pay for drilling and Polar Star) but what I am looking for is profitability once you strip out the outgoing costs mentioned.
Either way - I am confident enough to put some of the kids inheritance on it and wait. trust me - this will be a long journey but I think we will see slow but steady progress in SP with lots of opportunity to top up on dips as the price grows.
for those unfamiliar with the terms and agreement of the Chepica copper / gold mine purchase and a further reason why I believe the sale of 5 million GOS shares at a price of £1.2 million will go to pay down our Polar Star earn in agreement , debt I've attached the following link www.reuters.com/finance/stocks/XTR.L/key-developments/article/2886319
Affe .............glad to hear you got your top up but dummy buying XTR shares for the past few days has been a struggle . Obviously The sale of 5 million GOS shares has strengthened XTR considerably but here's the good news . We still got plenty GOS shares left to cause a surprise re-rate if GOS lists on a stock exchange . My Halifax account posted this in XTR news section ........ Date: Thursday 10 Jul 2014
LONDON (ShareCast) - Exploration group Xtract Resources has raised £1.2m through the sale of 5m shares in Global Oil Shale (GOS) at 23.77p each in an effort to strengthen its cash position.
The AIM-listed group was issued 6m shares in GOS at a price of 12p in December 2012, which was part of the disposal of the Julia Creek oil shale tenements in Queensland, Australia. A further 1.37m were issued the following year at 40p.
The disposal therefore left the group with a holding of 2.37m shares, which would be increased by an additional 1.5m shares if GOS aims to float.
Chief Executive Officer Jan Nelson said: "The opportunity arose for Xtract to sell 5m shares, which immediately provides the company with an additional £1.2m without diluting shareholders.”
Leaving XTR still holding almost 4 million GOS shares when their intended listing on a stock exchange takes place . Not to worried with how much Jan Nelson got for the GOS shares sold but at the AGM it was stated news regarding Polar Star pay down will be announced within a month or so . It's widely known cash is king when deals are done or re-organised such as in the event of Polar Star needing money . In the Chepica fund raising and acquisition RNS this paragraph outlines Polar Stars cash position .
Polar Star reported on 14 November 2013 that, although the management of Polar Star has been successful in obtaining sufficient capital to date to pursue its business plans, there can be no assurance that Polar Star will be able to obtain adequate financing in the future or that such financing will be available on acceptable terms
Hence if Polar Star is strapped for cash with their joint venture agreement with Newmont Ventures Limited we might be getting some excellent news with regards to our remaining 85% earn in agreement for 100% ownership of Chepica . All in my own opinion but with XTR being well funded with the Yorkville loan , earn in agreement for the remaining 85% ownership of Chepica , Throughput and gold grades greatly improving creating greater revenue , etc It could be Polar Star that are having problems raising cash . I'm sure Jan Nelson would help them out by advancing Chepica's 100% ownership date .
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