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FTH: important to be aware that Alpha are not investors. They are lenders. Both approaches have ups and downs, so it's horses for courses. But aside from some warrants, this is a straight-up debt finance with bullet repayment in May 2023. Some key phrasing from the finance RNS:
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1. Debt facility:
“As part of the Transaction the Company has secured a $4,000,000 asset backed debt facility from A&T Investments SARL (Alpha) arranged by Alpha Credit SA ("Alpha"), a Swiss investment banking and asset management boutique”
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2. Identity of lenders:
“A&T Investments, the principals of & investors in Alpha Credit S.A.”
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3. Asset-backed debt facility, using a shareholder's Bucharest real estate
“Alpha has provided an asset backed debt facility with the following terms:
· $4,000,000 asset backed debt with no convertibility
· 12 month term
· 20% interest per annum with ability to repay early at month nine. Interest & principal to be repaid as a Bullet payment at the end of the term on Monday 15 May 2023.
The following security has been granted by the Company in order to facilitate the Transaction:
· Alpha has been granted first lien security over a real estate asset in Bucharest, Romania, in order to provide an enhanced security. Alpha is predominately a real estate driven lender and as this transaction is its first mining transaction, the real estate security component was key. The real estate asset has an independent valuation of €9,199,769.
· An existing shareholder of Vast Resources PLC, who is not a Related party under the AIM Rules, has been granted a first ranking security over Baita Plai in return for allowing the real estate asset owned by him being used as enhanced collateral for the funding to be provided to Vast by Alpha. Alpha has been granted a second ranking security over Baita Plai”.
(Note for information: Alpha are real estate people so they're more interested in the Bucharest real estate than the mine, while the shareholder who's offering the real estate as collateral gets top priority in having the mine as security for himself personally.)
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So you need to reframe how you're looking at this. Not necessarily in a bad way but just for your own clarity. Alpha are not investing for a return based on expected mine performance. They are lending for a flat 20% interest over one year, secured against a hunk of real estate owned by a shareholder.
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Separate issue trying to value all of Vast's other various untapped/developing assets/resources you mention. Need to update my thinking on that. Too busy today but I'll try to get back to you on that reasonably soon. It's a good question.
Thanks Sandy,
Picking your brain here:)
What are the all various untapped and developing assets/ resources now worth in your honest opinion?
As an new Investor on board with CEO, what will ALPHA be seeking on their new investment from 0.70p per share
i.e ROI their return on investment?
They have to very confident that the returns would be worth an investment, post due diligence?
Else why would you invest?
Good reputation does not want to be tarnished, lawyers would have weighed up their risk v high reward for next 1-2 years.
H
FTH: no, it isn't the company's. It belongs to a shareholder who is sticking his neck out for the company, and getting security over BPPM as a result. Essentially, to get the finance over the line, some personal wealth is being used as collateral.
Sandy.
Thanks for response, appreciated.
Is the following real estate building one of our assets? Worth €9m euros?
Can you clarify
The following security has been granted by the Company in order to facilitate the Transaction:
· Alpha has been granted first lien security over a real estate asset in Bucharest, Romania, in order to provide an enhanced security. Alpha is predominately a real estate driven lender and as this transaction is its first mining transaction, the real estate security component was key. The real estate asset has an independent valuation of €9,199,769.
FTH: I'm a man. 'Sandy' is Scottish style. Thanks for the kind words.
Not much of the month left so not sure if there's more to come in May.
-- At some point we'll have to get an update on the dispute with Atlas but that's with the lawyers, so might be a while.
-- We're also expecting updatef terms on our loan from some years back with Mercuria, but that's likelier to be in June.
-- I'm not expecting anything operational about Romania for a little while but we've had very little in RNS about Tadjikistan, which kicked off all the SP hoopla because of the revenue it pulled in. In reality we know very, very little about it, so I wonder if the company will put out an updated corporate presentation with more information.
-- There's lots of stuff in mothballs right now, so you never know when something will pop up. Rarely game-chanfing but sometimes nice to get an update on other backburner projects.
Sandy,
You’re a man/ woman of great reasoning. Like.
Sandy, what is next pieces of news expected this month?
Stockportedd: any link to that report? Cheers.
Looking to the future…..
The Takob Mine was one of the most important fluorspar in the USSR, also holds lead, zinc and silver. Undoubtedly more will be heard from Takob in future.
This report was released by the CIA in 2013 from a report from 20th May 1952 under their document release program.
Let’s hope VAST can do well with their new acquisition.
Tempted to buy back in but there seems to be a bad case of inertia here just now.
you know my love for AP... lol..
Agreed on the below :)
I appreciate that there's a range of opinions about Vast, going from 'AP is worse than useless and you will lose all your money' through to 'AP's got this company sorted now and it's going to multi-bag'.
Ultimately, as I've been following Vast since 2016 and have met AP many times, I can say that that entire range of views can be supported in various ways with various evidence, so it's a legitimate debate - and this is a discussion board.
So my suggestion to all is that we try to move away from debating posters and try to focus on the company: its strengths, its weaknesses, its potential, it's risk, its progress, its pitfalls.
You know. Actual stuff about a company, rather than playground stuff about each other. How about that?