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ATB, tucson.
Indeed Hedgehog, I've previously commented on the beneficial side of recent warrant conversion to the Company in terms of cash received. It's also true that the "up to" £250k is beyond the clearing of the decks on previously unpaid Directors salaries. Nice to have that technical debt out of the way and to hear the fairly low amount now seen to be needed to reach cash flow positive and self-funding thereafter.
That said, I'm still of the mind that this thing may be designed as a shot across the bows of the prospective lenders to either get their fingers out or to get others to get theirs out or to do one. Assuming that message is received and understood, let's see if things suddenly get freed up on that subject in which case, the actual drawdown may end up considerably less than the "up to" £250k available to cover cashflow over the next 6 months.
" A mere "up to" £250k over the next 6 months is seemingly all that's required."
On top of the £251.25K. recently brought in through the exercise of warrants and share options, which apparently isn't enough.
17th Sep 2021 1:25 pm RNS Exercise of Warrants
"Kazera Global Plc ("Kazera Global", "Kazera" or "the Company"), the AIM quoted investment company, announces that the Company has issued 10,000,000 ordinary shares in the Company ("Ordinary Shares") to satisfy the exercise of warrants by Tectonic Gold plc. The exercise price for the warrants is 1 pence per share. ..."
https://www.lse.co.uk/rns/KZG/exercise-of-warrants-h6ao34p86jzwz0u.html
1st Oct 2021 9:53 am RNS Exercise of Warrants
"Kazera Global Plc ("Kazera Global", "Kazera" or "the Company"), the AIM quoted investment company, announces that the Company has issued 2,500,000 ordinary shares in the Company ("Ordinary Shares") to satisfy the exercise of warrants. The exercise price for the warrants is 1 pence per share. ..."
https://www.lse.co.uk/rns/KZG/exercise-of-warrants-082zwq2uegp90jx.html
4th Oct 2021 4:07 pm RNS Exercise of Warrants
"Kazera Global Plc ("Kazera Global", "Kazera" or "the Company"), the AIM quoted investment company, announces that the Company has issued 5,000,000 ordinary shares in the Company ("Ordinary Shares") to satisfy the exercise of warrants. The exercise price for the warrants is 1 pence per share. ..."
https://www.lse.co.uk/rns/KZG/exercise-of-warrants-f1pddlt1x22uubu.html
7th Oct 2021 6:07 pm RNS Exercise of Warrants
"Kazera Global Plc ("Kazera Global", "Kazera" or "the Company"), the AIM quoted investment company, announces that the Company has issued 16,666,666 ordinary shares in the Company ("Ordinary Shares") to satisfy the exercise of warrants by two of the Company's Directors, Giles Clarke and Nick Harrison. The exercise price for the warrants is 0.3 pence per share. ..."
https://www.lse.co.uk/rns/KZG/exercise-of-warrants-syxjhlts6447cqf.html
12th Oct 2021 11:28 am RNS Exercise of Warrants and Share Options
"Kazera Global Plc ("Kazera Global", "Kazera" or "the Company"), the AIM quoted investment company, announces that the Company has issued 1,825,000 ordinary shares in the Company ("Ordinary Shares") to satisfy the exercise of 325,000 warrants and 1,500,000 share options. The exercise price for both is 1 pence per share. ..."
https://www.lse.co.uk/rns/KZG/exercise-of-warrants-and-share-options-9wljtn14mcr3tof.html
18th Oct 2021 3:06 pm RNS Exercise of Warrants
"Kazera Global Plc ("Kazera Global", "Kazera" or "the Company"), the AIM quoted investment company, announces that the Company has issued 1,666,667 ordinary shares in the Company ("Ordinary Shares") to satisfy the exercise of warrants by Peterhouse Capital Limited. The exercise price for the warrants is 0.6 pence per share. ..."
https://www.lse.co.uk/rns/KZG/exercise-of-warrants-3akbg6ec9bhedjy.html
Oh, those ones. I think the word samples is the key. Can't think that I know of any company that separates out sales revenues of individual sundries. I think the message at the time was more just flagging up interest from potential buyers when and if they could get to viable commercial production. Seems that doorstep is now upon us and as we know, an initial 3-year offtake agreement has been signed with the Chinese who were also said to be interested in helping to develop the production of the lithium reserves.
Still waiting for the value of those four samples to be disclosed, must have been freebies."
"A test sample has already been successfully assayed in Namibia and has now been airfreighted to Jinxin for factory testing. Payment for this sample is expected by the Company during September 2021."
Thank you for that. The 4 samples to which i refer date back from a few years ago, not the recent one sent to Jinxin as per the info you have posted which is far more recent.
My point being, we have sent samples previously, yet never received payments for them, what happened to that cash?
"Still waiting for the value of those four samples to be disclosed, must have been freebies."
"A test sample has already been successfully assayed in Namibia and has now been airfreighted to Jinxin for factory testing. Payment for this sample is expected by the Company during September 2021."
In view of the latest RNS, it seems you are wrong tucson! A mere "up to" £250k over the next 6 months is seemingly all that's required.
"Generating cash from early next year will mean that we can fund our own future expansion and that we would only look to additional funding if it was on terms that substantially improved the Company's prospects."
New brush sweeping clean? Wonderful to be invested in a company with such a massive future and not able to be held to ransom. Now only on terms that substantially improve prospects or not at all. I like that strength and the shot across the bows of potential funders - get your act(s) together or do one!
Looking forward to that suggested "year end" (but which year end?) RNS stating that the mine is once again (after several years of stopping) producing Tant and finally earning a few quid.
Still waiting for the value of those four samples to be disclosed, must have been freebies.
I find that often it pays to look backwards, rather than just forwards to obtain the benifit of experience when making my investments, better than just continual blind unfounded optimism and historical blinkers..
I remember for years and years in my younger life being told a big porky pie about a fat man in a red and white suit coming down my chimney leaving me loads of presents once a year. Like all youngsters i swallowed that line for yonks as indeed the big pile of presents materialised as expected each year right on cue.
Here the presents are still outstanding, and i no longer believe in fairy stories.
Im not sure if fellow 'old timers' will Remember when Kennedy announced they'd 'bought' there first mechanical excavator? i certainly do. How i chuckled at the time when i thought of all those shifts of poor workers we used to employ here toiling away with just shovels beforehand extracting such a valuable commodity. Also made me think of Christmas - pantomime.
Furthermore, since mid-year, as the Company states, “despite the investment being delayed, based on their understanding of the situation from a Namibian perspective, the new mine contractor, DJ Drilling, continues to rebuild the road systems at Tantalum Valley that were damaged due to the extreme heavy rains experienced in Namibia. There is continued heavy equipment arriving on site as well as technical teams now busy with maintenance of the current plant. This work is being undertaken by DJ Drilling its sole risk and at no cost to Kazera in the expectation that the investment into the Company will be made.”
“…repairing the road systems around the Mine…noww been completed. DJ Drilling will now begin moving earth for the government approved Tailings Dam that will recover approximately 20% more water from the plant waste materials.”
“Since moving onto site in June 2021, DJ Drilling have upgraded roads and general infrastructure as well as conducting plant maintenance. In line with their continued commitment to the Mine, DJ Drilling have agreed with the Company a fixed price contract, which will see the Mine be moved back into operation and producing Tantalum with a target by the year end. DJ Drilling will then be predominantly paid out of profits generated by the sale of Tantalum.”
"DJ Drilling committing to undertake the work to get the mine into operation as well as their bringing in the necessary equipment has unlocked the current impasse and is a true reflection of their commitment to the project and their belief in its potential. We look forward to a long and fruitful future together."
Five months work and major expense and ongoing for nothing. These idiot companies are everywhere, aren’t they? Gullible, born yesterday types I guess.
....there in plain sight.
"And if the investors are waiting for the proceeds from selling another project or projects, then it could be a long wait, with an uncertain outcome."
But they’re not. We were told on 13 May that the hold up is actually because they are seeking to invest even larger sums in Namibia:
“The Board have now obtained further assurances that the investment of EUR9,130,000 referenced in previous RNS's will proceed in accordance with the agreed documentation. The expectation was that the funds would be received imminently following the completion of the banking due diligence. However, the investment in Kazera represents part of a package of broader investments in Namibia being made by the prospective investor. The size of the overall funding coming into the country has raised the need for visits to the larger projects by the underlying backers to cover in-country compliance….
…..The Board does not expect any issues for the Kazera element…Enquiries undertaken by both the Board and the Company's independent advisers have all indicated that, despite the delays, the investment into the Company is still on track to complete on the terms as agreed in the signed Subscription Agreement between the two companies and previously outlined to the market…no guarantees as to when the investment will complete and when the Company will receive the funds committed…”
So, banking due diligence confirmed as being completed in Apr, signed Subscription Agreement, not merely Heads of Terms, no issues expected for the Kazera element, no mention of “if”, only when and such assuredness has continued in all statements on the subject throughout 2021.
"There may be agreed heads of terms, but not a signed contract, so the investors are not obligated to proceed." Given that we’re told only one of the potential investors will get the nod, it follows that, as you say, neither are obligated.
Nevertheless, both investors have agreed to the terms and these terms have never varied, nor the stated commitment of the investors to complete.
We heard only last month that KZG had been constantly updated by both prospective investors, both remaining confident of being able to make their investments – shortly - at the original investment level (circa 2.7 pence per share). Both are awaiting the conclusion of other transactions and neither is able to control the speed at which these bigger transactions come to conclusion.
“Both…remain focused on completing their side of the existing agreements with the Company. Once these funds are received they will substantially accelerate the development of the Mine and further exploration into both the Tantalum and Lithium deposits…along with a Phase lll Drilling Program to add further to our world class resource.”
“Whilst we remain focused on the accelerated opportunities that an investment of $11million would create, we are conscious that the process has taken longer than anyone had originally contemplated as a result of outside factors. Rather than continue to wait, the Board have elected to move forward, albeit on a smaller scale, with a view to accelerating operations at the Mine once the investments come through and in a manner that is non-dilutive to existing shareholders”
So, “..remain confident they will be able to make their investments shortly”, “once the funds are received”, “once the investments come through”. No suggestion of “if”, only “when”. Noted.
So, other prospective transactions are bigger than the KZG proposition Neither investor struggling to get there financially then? Noted.
So, those previous statements have not come through? Must be wrong, must be liars, why would anyone invest at such a premium?
At IRON, another GC company, they too have waited all of 2021 for a result. First indications of other interest was Dec 20. Then came “Talks at an advanced stage with a major partner seeking to take a strategic equity stake in the Company at a premium to the current share price…material progress on a possible alternative transaction...which we hope to conclude in the coming weeks”. Oh right – weeks -, sounds familiar, when was that - 30 Mar!
Then came “…Whilst progress on the transaction has taken longer than initially expected, positive discussions have continued and the Directors remain optimistic that a deal can soon be concluded.” Oh right, – soon -, sounds familiar, when was that – 1 Jun!
Then came a near 5-month virtual news blackout till 22 Oct – news on a Friday, must be bad, it’s a rule! Heavens above, will you look at that, a major investment at a significant premium! Boom!
Nuff said. The opportunity is
" ... the AGREED investment at 2.7p ..."
Poppyseed,
There may be agreed heads of terms, but not a signed contract, so the investors are not obligated to proceed.
And if the investors are waiting for the proceeds from selling another project or projects, then it could be a long wait, with an uncertain outcome.
So KZG need a Plan B to get the required strategic funding.
Clearly, they didn't have DBM diamond production years ago, nor a massive JV, just signed, to run the Alexkor processing plant or indeed the vast promise of HMS. Nor the advantage of DJ drilling taking on the front-end costs/risk of upgrading the TVI operations at their own expense in order to get things moving, ahead of the major investment that would clearly speed things up, including further drilling to better define the scale of the tant and lithium resource.
Taking Fortitude's report at face value, I'm sure DE is merely looking ahead to the unfettered promise of the next period and seeing the possibilities of quickly growing income from operations and thinking along the lines that the AGREED investment at 2.7p will be just dandy and will speed up ambitions for sure (likely to happen based on Sep RNS but always sensible to have a Plan B), but that KZG can actually do this without the 300m share dilution it would bring, albeit on a somewhat slower trajectory.
Unlike IRON which, for all its attributes and value on other levels, had an absolute need of getting investment over the line in order to move forward, KZG looks well capable of prospering in due course with or without major investment because of last year's bolt-ons and the rapid progress achieved in trying conditions under the stewardship of new sole-CEO, DE, not forgetting him also recently securing the additional likely-meaningful earnings of the major Alexkor processing JV which is quite apart from the the promise of DBM and WHM.
Obviously, the main difference in the absence of the major funding is pace of growth but I believe this will soon be resolved by one of the two investors getting over the line. Just saying, I do not see the dark storms others are perceiving if, for whatever reason, the funding doesn't come through. Sounds like DE is of a similar mind. The coming period will reveal all.
If they are talking of possible in house financing of the pipeline why was this not considered years ago?Instead of all those wasted years especially if the mine is world class according to Larry.The slow pace of 'progress' seems like bad management to me
Fortitude - Hope you are right as this is of course conjecture, but please remember the rules of posting on these boards, ie if you are wrong we will say 'I told you so' !!!
Dennis Edmonds tells me that the tantalum ,diamond production and HMS will within the next few months start to produce serious earnings and he seems to be saying funding for the pipeline could be financed in house regardless of a third party. I have no doubt he is not prone to over exaggeration and bases his three month confidence prediction on hard facts. He surely is in the best position to know. Regarding Larry Johnson’s departure we had two very competent CEOs and frankly one of them had to put their head on the block. I do think with Edmonds we shall see a lot more RNSs as we accelerate away from the set up stage to that of a more mature company. The stars here are the tantalum and HMS projects. Both are simply enormous………………… ????