Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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The shareholder who lent the money wouldnt be diluting themselves with a placing, on the contrary like last time when they got their shares at 0.6p they could convert the debt and take another 10-20% of the company for peanuts
We have hundreds of millions in financing arranged, done if which will go towards paying off debt and working capital, so yes, another £50k interest for a few months is worth it vs placing. I’m sure the lender/largest shareholder would agree.
By the end of this month Kefi's net debt position will be at least £4million as cashburn is around £400,000 to £500,000 per month.
Given the original facility was for only £1.5million with a 25% interest rate is it sustainable to keep rolling over this debt at such a high interest rate?
Perhaps Harry Madoff using his COSULTANCY fees to gain another 25% from the naive shareholders!!
I think we can safely assume bridging is rolled over given the date and who knows how much of the £1.5m we have used until now. Storm in a teacup. Next.
“The Group has the option to access working capital from certain existing stakeholders for up to GBP £1.5 million. This unsecured working capital bridging finance is short-term debt which is unsecured and ranked below other loans. Bridging Finance facilities bear a fixed interest rate of 25% and are repayable at the earlier of a capital raise or 30 November 2021. In the event the Group was unable to pay this finance it would be repaid after other debt securities have been paid, if any. Management expects that the company would meet its contractual obligation on any such bridging finance on a timely basis going forward.”
Bear in mind the lender is our largest shareholder who was also the one Harry referred to as not wanting a placing before mine finance. They appeared pretty adamant. Obviously things have moved a little in timescales but bridgers on 25% love to roll over for some more fees and a top-up. its really unlikely the largest shareholder who was largely the reason for bridging as opposed to a placing is going to now distress their own large holding. We need more clarity anyway on timescales and i do not think they know today.also if bridging was due end of November it has already passed and you take to bridgers 1 month in advance so its BAU. Furthermore like before all bod have taken no salary in the past in these times so i am sure they will be doing the same, afterall this mess is their own doing from not making hay while the sun shone and dragged their feet. personally who really cares if they did a small placing or not, its actually positive in the circumstances to give us the runway and get ready for Hawiah update, TK updates and Jibal updates. All due in next month. anyway .85 is a great entry and surprised we have reached this level all things considered and by RG resoundingly pushing TPLF practically all the way go Tigray. Looks like a complete turnaround or i think stage managed as it seems inconceivable a group can take on the EG with planes, drones and special forces. its very likely Abiy could not get them in Tigray so got the TPLF in his own territory before taking on.
Sorry mate you are wrong - not sure what accounts you are reading but it ain’t Kefi ‘s
£5m? As at august we had £1m in cash. The loans was for £1.8m. We may need some capital to tide us over for a month but it won’t be £5m and won’t - in my opinion - be via a placing. Maybe a £200k addition to the current loan.
Derampers with an agenda filtered
The discount on the sp is all down to Adams - the assets are there but the wrong man is in charge
Adams is a total carpet bagger; I have long given up believing anything that comes out of the sun tanned mouth of his.
The business is close to going to the wall; he has not raised the finance despite years of promises; E is in melt down politically and he is pedalling the myth that all is well - he has to raise funds sharpish so yes another emergency fund raise but what fool will back it?
Yeah they no doubt would want to extend the loan unfortunately it’s not their choice the lender can call in the money as of two days ago so there is probably going to be a painful dilution unless they can get circa 5 million quid from someone else
Sorry chasf, yes - my thoughts too
I was suggesting sarcastically that if the original reason for the bridging finance was to avoid dilution (when the price was much higher) they will extend the term rather than suffer even more dilution by placing now (with the price even lower). The original deadline of Nov was presumably chosen because everything was expected to be done by then, before the kidnapping episode.
Bridging finance is just a loan until the project financing comes in. Nothing to do with share price or dilution. As long as we have sufficent share captial to cover it then term shouldnt be too prohibitive.
I'm not sure why a group providing bridging finance specifically to avoid dilution when the shares were ~2p would suddenly go "you know what? we'll go for one now at 0.70, with roughly 3 times as much dilution! that makes so much sense!"
https://www.fanabc.com/english/pm-abiy-ahmed-launches-greatethiopianhomecoming-challenge/ Would not be surprised if Harry catches up with developments with Hawiah before the update there this month.
It was remote. Harry is needed in Ethiopia rather than in quarantine in the UK. No flights from Ethiopia i suspect anyway. Abiy has upperhand, peace talks being brokered and breathing space to relight momentum. I suspect what happens all depends on progress. If Harry is close bridging. If its longer term it will depend. 25% interest is very nice for those lending and they have pretty good callaterol for the debt as Kefi is debt free apart from bridging so lets wait for Hawiah updated resource and see if Ethiopia quickly recovers its calm and then we could be looking more confidently. I am confident we are grossly undervalued but TK clouds the horizon and as i said before if Harry spun out Hawiah to stand alone we would be worth more than today. Selling Jibal is an option if that license comes through as planned in January. Key is we have plenty of assets to back borrowing and several are about to get a lot more valuable.
One thing is certain, this is currently priced for TK failure. The current mcap doesnt even cover the potential in Saudi, let alone a near term gold production on the cusp (?) of financing. Risk/reward as ever but if everything was rosey you wouldnt have a hope of getting in at these prices. We were way over 2p not too long ago. IF bridging comes in AND and nice Saudi update AND TK financing pre end Jan 2022 AND news on the Saudi gold license then this should be in the 3p range at the very least.
GLA
Finances will certainly be tight at the moment, with preparation activity at the site and contractors to be paid. There is only so long Harry can hold out for completion of financing.
I suspect Harry will have a few things in mind. The first is the possibility of addiontal bridging finance, which he has laready stated is the preffered option. Local banks, familiar with the security situtation and possibly the project should be forthcoing. There is also the upcoming Saudi resource upgrade which Harry will want to share pre any placing, if it comes to that.
I doubt Harry came over to London just for the Mines & Money event as that would justify his business class flight from Ethiopia.
The 25% debt financing facility is due for repayment next week so there's a good chance Harry has come over to meet brokers and clients to arrange a placing. It wouldn't be the first time a placing has been announced soon after a business trip to London by Harry.