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Called reading the RNS properly b4 posting. Somehow in all the excitement completely missed the 1 in 8 bit, not the bit to miss really :). Plenty to digest today not sure how I feel. That MRE is overdue and I want to see it.
This is progress. The modest 3.5m apportionment to the gold is clearly very supportive to IRR and will surely be seen as a positive by the iis that have held off from investing until the demerger. Also, we are now getting much closer to that inflection point where we should start seeing the stock go up to where it should be - ie much higher than the 18p to 24p range that it has been stuck at lately due to that uncertainty.
It's all about the lithium company now (ALL)
And this what will create the huge value for current holders in the middle/longer term IMHO.
the gold company (RICCA) will be just a little bonus that may or not will gain some value but not for a long while....again IMHO.
I will hold to my current position with a view to see the lithium company growing into very decent and rewarding asset.
GLA.
As an unlisted security am afrsid that is down to interpretation..obviously Vince and co do not think it is being given the valuation it deserves and is taking this action..hopefully somewhere down the line it will be either relisted or taken over and better value realised for all
Doesn't look like the $7million placing for the new gold company has gone down well
So N2S how do we know at any given time the value of our gold shares ?
Why is it unclear swest holders in IRR get 1 share for every 8 held in Ricca..a bit basic
Could someone clarify. Are IRR holders getting any interest / shares in Ricca. If not, then IRR holders are down 7M AUS, as that been tranferred / comitted to an unlisted entity, hence the drop. Is this correct, genuine question as unclear.
On par with the past 5/6 years an RNS causes a drop in SP. I do agree with Munchbox in the view that the seller or sellers probably knew about this news long before today. Disappointing once again.
That's how I see it SM.
If I was to pick out a negative then I'd say VM could have given us 1 Ricca for every 4 IRR but I also see the case for not doing that.
It is of course important not to lose sight of ALL as you suggest given this will be listing on the USOTCM and Piedmont are in at 20 and 25p.
In for a few more today. ATB.
Hi Bozi, RE the point on choosing not the list the gold now. As we are (long) overdue the MRE at Zaranou, I am wondering whether the business has bought itself some more time to prove up the surrounding targets so that it has a much more substantial MRE to shop around at IPO time.
Personally see today's news as welcome as we now have transparency over the future of our investment with accompanying timelines.
- Company to be demerged into publicly listed Atlantic Lithium Limited (ALL) and delisted Ricca Resources Limited
- ALL to be dual listed on AIM and OTCQX (North America)
- ALL to become a much more attractive investment (vs IRR) to those who want exposure to lithium, including instis, funds & ETFs
- Ricca to raise almost equivalent cash being siphoned from IRR (AUD 7m vs AUS 7.1m) with shareholders of Ricca invited to take part in the capital raise
- Whilst the above I hold to be known, I would strongly speculate that Ricca will list at some point next year following further progress with its drilling campaigns (and I'd hope for a welcome return on the shares we're getting there)
There may be a few teething pains over the next couple of months but mid to long term this remains an excellent investment.
If any of the above is inaccurate I welcome corrections!
All best
SM
How does demerging into an unlisted vehicle for the gold give us better value or a means to sell those unlisted shares?
Mike - there will be a small drop once the demerger goes through, bit like when a dividend goes ex.
But instead of having one apple we'll have two.
The other way it could have been done and the way I was maybe thinking would have been to list the gold up front and value it higher. For reasons only known to Vincent that hasn't been possible or hasn't been deemed the correct move.
Maybe starting the gold off at a low valuation gives more upside for IRR holders (and IPO buyers) when it does eventually list?
I might be wrong to be so but I'm not unduly worried.
Don't know if i have got this right but am attributing roughly 10% of overall value of IRR to new gold co ricca so possible drop to 16p and restart in January and see where we go once all the paperwork is carried out
Must confess to not really grasping everything in there and whether it is good or not.
Does having the gold company unlisted devalue our overall holdings or is it better that way.