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Ordinarily I would agree, I’m not impatient however, it’s different when TM publicly states shortly after the 3/11, that talks were already ongoing, fairly advanced, both sides are pressing to sign and that he would expect the deal to be signed well within the 90 days. Basically the market now suspects things are not as clear cut, why you would add unnecessary pressure by stating as much I’ll never know, anyway hopefully not too long to go now
It’s a message board, it changes nothing, it’s an exchange of views. I’ve never been involved in such deals, I bow to your greater experience.
However, I maintain that there is no need for uncertainty about what “up to 90 days means”. All doubt could be removed by stating the expiry date. As it is, we run the risk of Manini complaining again about impatient shareholders when he set the deadline.
I hope you’re right about a deal happening, although we thought that about Aeturnum and look how that ended. My own speculation is that DOID are likely to drive a hard bargain and could end up picking all of ARS on the cheap. As long as it’s more than 5.5p, I won’t be out of pocket, still a shocking result after 6 years of impatience.
TriggerBlade, perhaps this is not worth arguing over, but in my experience of deals I have been involved in, 90 days due diligence does not begin from the moment the telephone is put down, or email is sent. It will normally be specified as starting from, and ending on. The start date is normally slightly in the future at that point in time. All I did in my calculations was start the 90 days from the next Monday, which even that may have been too optimistic. Note the wording in the RNS, implies this was to begin in the future...
"In this regard, the Company will grant DOID an exclusivity period of up to 90 days"
Also worth considering that the 90 days is an exclusivity period. So for example DOID could take 120 days if they wanted, at the risk of another party starting to get involved. If DOID are reasonably sure by the 90 days, they could drag it out if it was strategically beneficial. They would only have to 'close' if another company got to an advanced stage. So the 90 days is pretty meaningless as a timeline. It is most likely going to happen, why would DOID have a 15% stake in ARS otherwise.
I don't really understand the logic of someone like Leem1, why stay invested if you think the guy is an absolute joke.
We must be at day 86 of 90 days but … it’s going to happen and it’s going to happen quickly… guy is a absolute joke
Dartron,
The 3rd Nov RNS said “up to 90 days” which would mean Mon 31st, not sure why the need for an arbitrary date later than that. Previous experience suggests ARS will miss it anyway, they have form, then Tony gets mardy with impatient shareholders who expect him to stick to his self imposed deadlines.
Copper just keeps going up and this pile of garbage just drops. Glencore up 100% and just about every single copper miner multi bagged and this shambles at year lows thanks entirely to lousy management. I reiterate I hope the deal goes through so I can see the back of this
RNS dated 3rd November. 90 days from Monday 8th November (as an arbitrary start point) is Sunday 6th Feb.
News (Whether good or bad) to arrive the week after?
It is in everybody's interest to get a deal done.
Delay in permit was due to the drills - they have one shot at permit plans and can’t amend. The drills have shown where the metal is so they don’t build anything over the metals.
jackbal , there was an rns last year where company( for whatever reason) put the full permit application on hold so it can't be granted at present.
Perhaps it's all connected to this jv ?
Well the deal is in principle an earn in agreement, without seeing the detail you can’t be sure however they may think they own a reflective percentage as they go but they dont own anything until all tranches are fulfilled. I agree that’s murky and potentially a hold up. It was an agreement at significant discount to the last and so maybe that’s the motivation. In terms of finance Then the claim is that DOID are well positioned for debt and equity financing but we will see. Given they are initially paying $10mil and then effectively providing the work programme it should be clear enough as to who owns what from a lending perspective, DOID don’t own anything of the company other than the overriding company shares. From Asiamets point of view they have a healthy balance sheet and a big resource. Time will tell, of which that’s running out fast.
It’s a treasure trove that’s for sure but still firmly locked with the permit.
Pinjam pakai changes everything “if” granted.
Normally I’d be keen on this type of risk but to be honest don’t want my funds tied up with a serial BS er.
Hope it comes good for you guys sincerely as the assets have never been in question (for decades)
They sort of already have given they bought 15% of the company last August. I do agree the DD is something of a cover story though, surely they’d already done a lot of prior to the £6m (think it about that?) investment, plus more ahead of the HOA.
Not sure re the permit - I thought they needed / wanted to know the footprint before applying and that doesn’t seem resolved yet. Nothing is happening quickly, but I remain confident because of the assets
Imo The 90 day dd is a cover story for giving doid a few months to exert influence and secure Pinjam construction permit.
Would you invest 10 million US without the necessary legal approvals in place?
So when they’ve paid the first $10million they own 10% of KSK. So presumably they then pay 10% of BKZ costs? If so it suits them to delay.
If they’re paying $10m for value engineering which can’t cost even a fraction of that, what happens then to the rest of the money. TM has alluded it can go towards the cost but presumably it’ll need ringfencing and not towards Beautong?
And how do you arrange finance if the liability isn’t clear, ie if the parties collectively arrange to borrow $100m who signs for what percentage? I can’t see how that can be finalised when the ownership isn’t resolved.
My own guess is it’s not due diligence that’s caused the delay it’s the wording behind the high level HOA. I don’t think lawyers would be comfortable with a fluid agreement.
Well the how is explained in the 3/11 rns and so that’s clear enough but the timescale is liquid. I guess it works both ways, they don’t own 51% of that project until all tranches paid. The financing should be straight forward enough for both parties given DOID’s scale and with their involvement and Aisamets resource one would hope once the deals signed things can progress. If it doesn’t get signed TM will have to stand down.
One thing I find interesting about the apparent deal is how/when DOID will assume the 51%. I appreciate it’s staged but until they’ve paid the 5 tranches they don’t own half - so what happens in the interim with things like the exploration costs at BKZ. And how do both parties apply for finance when that’s not yet resolved?