Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Oxime absolutely right it’s another PC. How many shares do you have please sell as it’s a jar of oil? Ouch
Remember also as part of the original deal xstate paid 50,000. Usd to mosman upfront as well as this 34,000 usd to get out .
So I would be pretty peeved as a xstate shareholder that they basically have given $84,000 dollars to another company getting nothing in return ( and not be too critical of our bod in this particular matter!) they (xstate) have announced no other assets just looking about, so why did they not just wait a couple of extra months, I think what they were trying to say imho was they could no longer afford the buy in so decided to get out plain and Simple. So again Baja are
In control of drill looking at cheaper ways to get falcon-1 on line and we have covered off 84 thousand dollars at another companies expense because Xstate wanted out.
As other have said a lot of news due on other fronts so let’s see what is announced next.
Gla
Yes, worth highlighting the clarification they had to put out...
Xstate Resources Limited (ASX: XST) (“Xstate” or “the Company”) wishes to make a clarification in
regard to its previous announcement regarding termination of the Champion Project Farm-in
Agreement. The termination of the agreement was in regard to significant delays in the timing of
drilling the intended well, not the well costs as previously stated.
Re-read May fundraising RNS and it’s purpose for the money raised , talks about falcon-1 and Galaxie drills (cost 235k each plus XSt buy in at the time)
Also mentions use for Stanley drills 3-4 and welch turnovers etc.
If Baja have recognised significant cost saving with falcon-1 then once that is assessed and a timeframe established we should be able to move on quickly and get that done,
I think it is the galaxie drill that may not be covered now, I would hope this is now pushed into 2020 timeframe before a placement if needed at all is at a much higher share price to cause less share dilution which is what all shareholders hate to see but is a necessary evil for a growing company.
All imho
Xstate announcement on aux as to reason why indicates the delay in drilling caused the move
But that is there spin on it ( a later clarification they said it was nothing to do with higher well costs ) as others say, who cares we move on , we have 60 percent back and another 50k for the termination costs.
Their announcement
‘Summary
ABN 96 009 217 154
Champion Project Farm in Termination
Electronic lodgement
• The Champion project farm in agreement has been mutually terminated by Xstate and Mosman.
• Xstate has agreed to pay Mosman the sum of AUD$50,000 as a break fee.
• Xstate has negotiated the termination of the farm in agreement due a delay in drilling activity and higher well costs which did not meet Xstate’s financial hurdle metrics.
• Alternative asset expansion opportunities in the USA are currently being assessed. Comments
Xstate Resources Limited (ASX: XST) (“Xstate” or “the Company”) provides the following update in relation to the Champion Project farm in agreement with Mosman Oil & Gas Ltd (AIM:MSMN) (“Mosman”) announced on May 8, 2019.
Xstate and Mosman have agreed to mutually terminate the farm in agreement. Under the terms of the termination, Xstate has agreed to pay Mosman the sum of approximately AUD$50,000. In return Mosman has agreed to release Xstate from its farm in obligations, including any damages claim.
The parties have agreed to terminate the farm in agreement due to a delay in the drilling schedule and Xstate has negotiated to eliminate future obligations whilst examining various investment options.
The Company continues to actively seek to identify and evaluate further asset opportunities that meet Xstate’s investment criteria and are capable of being delivered in a timely and cost effective manner.
For and on behalf of the Board of Xstate Resources Limited’
2m looking hot
How much cheaper? Xstate were in for up to $200k of the drill cost and up to $150k of the production facilities. MSMN may need to return the $50k up front payment too. So although it's expected to cheaper, is it still funded? 50% cheaper and the costs of the drill are less to MSMN but the surface facilities are probably the same.
As Falcon1 was the well AC specifically mentioned as likely to make MSMN profitable at the corporate level, they are still losing money until then and the unspecified nature of the possible delay means a a fund raise may be needed unless Stanley 3 and 4 are both done and generating the funds to make MSMN profitable, unlikely at the 15%ish level of interest.
Se we have to ask ourselves is a fundraiser likely, if so when and at what price. Hopefully we will see EP145 restructured and Dukas announcement give us a lift so any dilution, if necessary is done from an higher SP. Hopefully, it won't be necessary but if it sees MSMN get to operation profitability then it might be only a short term dip.
Maybe they'll get another farm in partner and avoid the need for funds. I'm fairly neutral overall on the RNS as I see upside (more %income) v downside (more %cost prior to income)