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CEO's certainly aligned....
AEX https://youtu.be/3l87WUOtBqI?t=624
WEN https://youtu.be/NiaztsAbNvw?t=879
Seems very possible vike, of course with the Zubairs holding almost 30% of AEX, any such move would need their blessing. It does give them additional exposure to more gas fields in Tanzania of course and a means of funding it through Pi's
CEOs of both aex and wen and already suggested this is happening, like it or not.
If solo sells their stake to newco they could take a mix of cash and shares (to benefit from drilling upside). It’s straight out of the Gneiss playbook.
Wentworth are in a nice position. Options could be:
a) buy some of the SOLO stake, say 10% (for $8m?) or 12.5% ($10m);
b) a similar offer for some of Aminex's remaining 25%; or
c) a straight merger with Aminex (similar mcap). The combined company would have positive cashflow, and a free carry to a sizable development asset.
Option C makes a lot of sense for both organisations. Was this what Mr Ambrose was alluding to in the 'infamous' interview?
Could be an interesting AGM post Farmout completion?
AEX is years away from cash flow (even with KS1) and are desperate for it. WEN has no growth, and the operator of Mnazi Bay has confirmed no appetite for near term exploration. No one is going to pay cash for anything in this market.
Where that leaves SOLO is interesting bc their holding could be sold to AEXWEN ‘newco’. The $35m credit line could still be applied to costs, just used up more quickly. Mnazi Bay cf to cover the rest in due course.
Could be Vike, though AEX only need the money for Kili and Nyuni & the later of which is years away. I would not discount a possible offer from WEN at this stage.
I doubt WEN are looking at solo’s stake. $15-20m cash payout plus the cost development (another $20-30m) would be too rich for them. See a non-cash merger with AEX more likely.
Hi Chris, it's 105mil or 75%.
Hi AA hope all is well. Licence has already been awarded of course and just the final signature now from the Energy minister. I guess the market does not believe that it will happen by the 14th July 20. If the deal closes then that's around $140 million or 75% of the project funded to production as a minimum and possibly even for the full field development.
Clocks ticking, 5 working days left.
GL
The fact that Solo's shareprice is 1.15 and Aex is .77 while on the threshold of the licence etc seems strange.
Solo or (and?!) Aminex?
Morning flex. Yes I watched it and they are looking at inorganic growth in Tanzania...so buying into another Tanzanian asset.
Any body else watch the Wentworth Resources interview & have a view on it? They have been able to make it work for them in Tanzania, a lot of similarities & are looking at acquisitions, wouldn’t be surprised if they haven’t looked over Solos stake.