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Hi Ian & Mooching, EUA need to pass the resolution to raise finance IF needed to help strengthen their negotiating position. The subtle wording means that they do not need to raise funds at this time. I agree with you.
As EUA have already paid for a 2 year option to decide which mines they want after proving up any resources, plus they have the call option to buy the RosGeo 25% stake, no funds are required at this time for that purpose either.
Finally, they can mine and pay the 25% royalties/profit to RoseGeo as they go, so money needed in advance for that either.
I think we need to take the BOD and the RNS at face value. I voted in favour of the resolutions.
GLA
Evening all, lovely day out there today!
Another disappointing day here!
Today's hopefuls are:-
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Hairy_Harris - 19/04/21 - Happy 44th Birthday maybe? ...... Just guessing? :-)
Isomer - 19/04/21 - Happy 54th Birthday!
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Bad luck! no major RNS today.
At least Palladium Price Per Ounce $2,855.00 up +$44.80 is doing very nicely :-)
Have a nice evening everyone, catch you all tomorrow, cheers.
We don't "need" the cash, we need to pass the resolution to allow the board the option to raise cash if needed.Different.
Those who are invested know why they are still here and with all the respect for anybody but they are not here for 60p..it´s all because we expect something else..
If negociations for the sale were off we should have been RNS´d..but our BOD and UBS are doing what they have to do and we have to be close
Somebody Posted times to go from non binding to binding offers..maybe he can post this again because he did this with possible values of deals..come on post this again..
We need the cash to demonstrate that we are equally ready to operate the mines ourselves if need be; we don't have to fire-sell. FOMO - fear of mining ourselves - is what would otherwise drag the sell price down.
Hi, James,
Yes, I agree the licenses could be a precondition to a sale, that is what I have suggested, but EUA doesn't have to spend any more money upfront, they have the two-year exclusivity right over them, so any buyer gets to take their pick!
Yep, we are all guessing, so we will see who was the closest with the passing of time!
Getting quite exciting for those who are invested, and worrying for the non invested I would say!
Agree with your last line! massive upside potential for shareholders.
Good luck to you.
It’s my opinion that a deal was very close when the Japanese interest arrived late in the process, it all points to an ongoing bidding war
Gla , anything is possible here
Ian, the licences could be a pre condition for the buyer. However, there are lots of possibilities here, but in my view we will not see a full sale. We are all guessing but whichever way it goes I see massive upside for shareholders.
Hi, James,
Ok, let's go with your view for a moment, Why would EUA spend to get some licenses that EUA already has a two-year option over? The money EUA would spend upfront would only be reclaimed from the buyer!
If a buyer buys out EUA, it will already have the two-year option to buy the licenses?
Yes, on your second part it might make some sense to you, but remember the BOD would like to get out and retire!
They have built this exploration company up over 25 years, they have taken shares at par in lieu of wages, they want their payday!
Just my view!
Morning Ian,
Personally I see there as being a strong possibility of a raise. This could be done to obtain the licences for the JV assets to then sell on to a buyer under the FSP.
The more likely option for me is an asset sale, with the raise to allow a new (Japanese) investor to take a stake in the business in exchange for an off take agreement. The raised cash is then used to develop those JV assets to be sold in future to a number of buyers.
Morning James,
I'm just pointing things out,
The fact that the company wants a resolution passed to enable them to raise cash, Is NOT the same as the company coming out and saying they want to do a cash raise!
YOU would be putting words in the companies mouth, they have not said that at all!
And yes, I'm saying they don't want to raise cash, going from their past experience of stating they would grow the company organically, and the fact they have shown no interest in using the Sinosteel loan, I think the company is virtually sold, and just tidying up some loose ends!
Why, do you think they want to raise cash?
They have already shown they have non-binding offers and are converting to binding, why would they change tack and start to mine now so late in the day!
These extra mines add to the companies value in a sale!
Sell with the extra value add, makes the most sense to me.
Ian, it must be too early for me, but could you clarify the conclusion to your post. Are you saying in your opinion there is no way there will be a cash raise?
Morning All
Eyes down for EUA bingo,
Ian - good post mate - & can you put me down for 22 / 4 / in the guess competition please Tilly’s birthday
Also - Septic Lil fancies another shot across the bows - Friday 23/ 4
Cheers
Anticipation of a positive conclusion during April cranking up for all invested
& the naysayers clutching at disruptive straws & desperate for stock , absolutely crapping there pants.
Coffee all Round
Good morning all,
I hope you all had a lovely weekend with all the sunshine!
Today's hopefuls are:-
----------
Hairy_Harris - 19/04/21 - Happy 44th Birthday maybe? ...... Just guessing? :-)
Isomer - 19/04/21 - Happy 54th Birthday!
----------
Good luck!
Just remember the FACTS from the LIES being spread by those who have an ulterior motive!
The company issued a speeding ticket?
NO, the company did NOT issue a speeding ticket! it was in the middle of a sale and can neither comment one way or the other on how that is currently going!
And to reinforce that fact a few days later the share price exceeded the previous price with NO RNS issued!
-
The company is to hold an EGM to hopefully vote through a resolution to enable them IF they require issue more shares and a rights issue?
So, because of this new resolution, that just happens to have been voted on and passed in recent AGMs, posters now think that the sale has fallen through and collapsed and we now need to raise funds to go it alone ...... Er, wrong! it is only a resolution to ENABLE the company to be able to do so! what the company has said is it will reinforce their hand in the ongoing negotiations!
They have already said the negotiations are ongoing (that is a clue) telling you that the sale is still in full swing!
But, they will need to raise cash to fund the new 9 mines that they have got the first footing in with a JV.
Just remember that DFS suggesting the company mine concurrently from the companies existing two mines?
And the companies response, that is NOT currently their plan!
Rember that Sinosteel deal loan to get the company up on its feet and get mining in earnest! the company just keeps kicking that down the road!
So the company has a DFS that suggests that they ramp up production? ..... And they don't take it up!
So the company has access to a massive Sinosteel loan to fund this expansion? ...... And they don't take it up!
So the company has access to nine more mines and you think they are going to raise funds to go that route?
The company has already shown it has no intention of turning itself into a major miner BUT is saying IT COULD to any prospective buyer!
What the company says, and what the company does are two very different things!
Do not try and second guess this company you would miss the point!
They have bought in an EGM to get something that was missing from the last AGM signed off before the next AGM? ..... Why?
You can miss the point and think they need to raise cash?
Or you can think for yourself and try and see what they are trying to do?
To take on nine more mines just as you are about to sell the company makes NO financial sence!
BUT to take on unlimited expansion to seal the deal with a buyer at the last minute does!
If you think the BOD wants to raise funds by issuing more shares and dilute their existing shareholding in the process, think again!
If that is what you think, you be