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Mila Resources Plc (AIM: MILA) announced its interim results for last year which were focused on finding E-Tech as the reverse takeover candidate, presenting a very interesting opportunity with their Eureka rare earth project in Namibia. Despite the global pandemic, the re-listing of the enlarged entity has not been interrupted and the company continues with preparing the documentation for the transaction to be completed by the end of the year.
My best performing stock at the mo
Acquisition appears to be paid by shares. So assume theyâ€™ll raise as the enlarged group for drilling. Interesting to note the Brandon Hill contact details. Must have switched brokers recently.
From their website : Funding partners are required for Phase-2: diamond drilling & test mining to deliver Preliminary Economic Assessment & upgraded resource classification. That’s where Mila’s fundraising on RTO will go to start with by the looks of it.
Also interesting to see that the RNS this morning is already in their news section which augers well.
Thanks for the post Gloster. It looks very promising. I like the sound of
E-Tech Metals Ltd are focused on advancing it’s 75% owned Eureka Nd-Pr-REE Project, located in central west Namibia
Strengthening Nd-Pr magnet metal demand in electric vehicle engines (EV & HEV); wind turbine generators; smart phones speakers; Growth in La for hydrogen storage, NiMH batteries and fuel catalysis
Eureka is a high-grade, large grain size, easily winnable monazite (REE) deposit. Including a high proportion of magnet metals Nd & Pr (15% of TREO) - Pilot metallurgical test work proves a MARKETABLE PRODUCT
Eureka hosts a consistent low-thorium monazite amenable to international shipping.
20 TIMES LESS THORIUM compared to mineral sand monazite.
Monazite from mineral sands typically run a NdPr to Th ratio of 1:1. For Eureka monazite that NdPr to Th ratio is 20:1
Thanks for the link Gloster.
"E-Tech Metals Ltd are focused on advancing it’s 75% owned Eureka Nd-Pr-REE Project, located in central west Namibia"
E-Tech remind me of KZG (Kazera):
"Kazera Global currently holds a 75% stake in Aftan, which in turn holds two wholly owned subsidiaries, Namibia Tantalite Investments (NTI) (holds operating assets and plant) and Tameka Shelf Company (holds title and licences to Tantalite Valley)."
KZG (formerly KENV - Kennedy Ventures) has been a roller coaster ride since it acquired its Namibian mining project in 2014.
But for MILA to acquire a project when prices are depressed should mean that it can cut a better deal.
Rare Earths Outlook 2020: Trade War to Dominate Supply and Demand
Georgia Williams - December 26th, 2019
" ... “Despite the continuous talk by some in the media about China potentially weaponizing its rare earths during trade negotiations with the US, prices of most rare earths have trended lower or stayed fairly flat for most of the year, with few exceptions,” said Luisa Moreno, managing director of Tahuti Global. ..."
MILA suspended today at 1.65p, a market cap. of just £382.8K.
Compared to MILA's £428.7K. of cash as at 30.6.19.
Fingers crossed that the RTO proceeds, in which case we should almost certainly see a good uplift in the s.p.
27th Feb 2020 7:00 am RNS Proposed Acquisition & Suspension of Trading
Proposed Acquisition of E-Tech Metals and Suspension of Trading
Mila Resources, a London Stock Exchange traded natural resource focused company, is pleased to announce that it has entered into a non-binding Head of Terms with regards to the possible acquisition of 100% of the share capital of E-Tech Metals Ltd ('E-Tech') to be satisfied in New Ordinary Shares of the Company ('the Proposed Transaction'). E-Tech is a private company developing projects in the critical and strategic metals industry and its primary asset is the high-grade Eureka Rare Earth Project in Namibia.
The Proposed Transaction remains subject to due diligence, completion of the acquisition and re-listing of the enlarged group on the Official List.
The Proposed Transaction, if completed, would constitute a reverse takeover under the Listing Rules. As the Company is currently unable to provide a full disclosure under Listing Rule 5.6.15, it has requested a temporary suspension of listing in its ordinary shares with effect from 8.00 a.m. today, 27 February 2020, pending the publication of a prospectus and the application for the enlarged Company to have its Ordinary Shares admitted to the Official List and to trading on the Main Market for listed securities of the London Stock Exchange. The Proposed Transaction will be subject to approval by shareholders of the Company at a general meeting.
Mila Executive Director, Mark Stephenson, said "The critical and strategic metals industry represents an area of significant growth in the coming decades as international policy makers and manufacturers turn increasingly to electric vehicles and efficient energy storage. The Eureka Project would provide Mila with a highly attractive entry point into this market as this asset not only combines high grade neodymium and praseodymium mineralisation, two of the most prized and high value elements in the Rare Earth group of metals, but also offers the potential for near-term, low-capex and low-opex production."
Whilst the board is resolute in its efforts to execute the Proposed Transaction, no binding agreement has yet been reached and accordingly, the board cannot at this stage guarantee its completion. Further announcements will be made in due course.
I have held for these past 3 years! I pray this deal will be completed. I’ve waited long enough. Only problem is that I paid 7p. If I get my money back I will be happy.
I had a cunning plan here to attempt to buy all the remaining free float, but sold 2 days ago to chase other things, damnit! Looks like I'll be chasing this on the other side at 10 x the price :(
I almost bought these last week..
RNS out re Mila entered into a non-binding Head of Terms with regards to the possible acquisition of 100% of the share capital of E-Tech Metals Ltd to be satisfied in New Ordinary Shares of the Company E-Tech is a private company developing projects in the critical and strategic metals industry and its primary asset is the high-grade Eureka Rare Earth Project in Namibia.
A RTO (reverse takeover) into a shell gives more certainty than an IPO (initial public offering), especially in a weak IPO market, and allows a company to raise its profile and share price before raising funds later at the most opportune moment.
Many of the largest companies have their roots in RTOs, including even FTSE 100 constituent WPP, the world's largest advertising company:
... WPP plc is a multinational communications, advertising, public relations, technology, and commerce holding company headquartered in London, England. It is considered the world's largest advertising company, as of 2019. ...
The company was founded as Wire and Plastic Products plc to manufacture wire shopping baskets in 1971. In 1985 Martin Sorrell, searching for a listed company through which to build a worldwide marketing services company, bought a controlling stake...."
So the "extremely exciting opportunities" to RTO being negotiated by MILA could result in something pretty special happening here ... which should mean a pretty special reaction from the share price.
YOLO is now ASLR, and has continued its stellar rise.
Up another 16.92% (5.5p) today to 38p: market cap. £35.6m.
YOLO-ASLR has now 16.5-bagged from its s.p. at the end of September last year (2.35p).
Remember that it was a change of investment strategy to focus on technology that triggered the start of YOLO-ASLR's rise:
2nd Oct 2019 7:00 am RNS Placing and Investment Strategy
" ... Investment Strategy
The board of directors has conducted a review of the Company's investment strategy. One outcome of that review is that the board has decided that, in the light of the current market conditions and pipeline opportunities, within the scope of its current investment strategy it should give particular focus to technology opportunities in the fields of big data, machine learning, telematics and the internet of things (IoT). ..."
I wouldn't be at all surprised if shareholders attending MILA's recent AGM received an indication that MILA's new strategy includes the technology sector, which I believe it almost certainly does.
Which, combined with the "extremely exciting opportunities" to RTO that are being negotiated here, makes this a very compelling investment opportunity.
There were four MILA trades on 23rd. December after the AGM, which were buys apart from a small trade of £71.28.
This suggests that the shareholders attending the AGM were pleased with what they heard:
23-Dec-19 15:57:09 2.44 11,379 Buy* 2.10 2.60 277.65 O
23-Dec-19 15:56:56 2.44 74,304 Buy* 2.10 2.60 1,813 O
23-Dec-19 13:34:19 2.11 3,378 Sell* 2.10 2.60 71.28 O
23-Dec-19 12:39:45 2.4499 40,330 Buy* 2.10 2.60 988.04 O
P.S. Thanks John.
Anyone attend the AGM?
Excellent post! As soon as a target is mentioned, this will see multiples in my opinion
A non-resource and domestic RTO should be relatively quicker, cheaper, and simpler to arrange.
Whereas foreign acquisitions obviously increase costs, and resource acquisitions tend to have more complicated due diligence, and risk of abortion.
In addition, two other potential barriers to an RTO don't apply in MILA's case:-
• It's a 'new', 'clean' shell, as opposed to a 'dirty' shell that previously housed another business, which can have left some toxic baggage.
• It's very lowly-valued, including re. cash, so there is no problem of shell overvaluation putting off interested parties.
And unlike most penny share fundraisings, a small cash-rich shell can raise money at a premium.
For example, a few years ago the shell ACO raised funds at a premium of 71.43%:
"3 August 2016
Acorn Minerals Plc (the "Company")
The Company is pleased to announce that it has entered into conditional agreements with a group of unconnected investors introduced by Peterhouse Corporate Finance, pursuant to which such investors will subscribe in cash for 16,517,778 new ordinary shares in the capital of the Company (Subscription Shares) at 15p per share (Subscription Price) to raise gross proceeds of GBP2,477,666.70 (Subscriptions).
On issue, the Subscription Shares will represent 53.62% of the issued share capital as enlarged by the Subscription Shares.
The Subscription Price stands at a 71.43% premium to the closing middle market price of an ordinary share in the capital of the Company on 2 August 2016, being the latest practical date before the date of this announcement. ..."
That’s my opinion too.
No, I've yet to see a share that suspends on an rights/open offer
If there is a rights issue/open offer are they likely to suspend the shares immediately on announcement? Last time they announced an RTO they were suspended more than 6 months
Thx for reply.Surprised no mention of passing of resolutions at AGM
Rto ,I’m in two at the moment ,one of which is 14 months so far and still not relisted .
From experience of other shares it's normally around 3 weeks to a month I believe.