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From Companies House
https://twitter.com/Alby__Tross/status/1773679595851530523
SH, would seem like a sensible strategy considering recent events. The only, potentially, excusable reasons for their stated approach is that Botswana has already attracted discussions for a buyout or the new licence allows facilitation of some issues in Zambia (I'm a realist! ).
Any LTH might find the recent Altona Rare Earths RNS interesting, particularly in relation to Susteneri directors and shareholders.
Completely agree SH. Yours is a considered post and I think you're right. This is absolutely the wrong time for an acquisition. The only caveat to that would be that ARCM have managed to create some sort of "unmissable" angle and simply have to have the asset in question. But, like you, I remain to be convinced. The opportunity for shareholders here is the Anglo JV. Conserving cash to avoid dilution ahead of that JV's potential fruition should now be the priority.
Good post small holding, the only strategy this company have is to secure the boards long term future.
I have said it before AA are in charge here and imo they are in no rush to do anything, they have licenses all over the world and its how they operate, at this time they are more interested in getting there own house in order, drilling in Zambia is not a priority.
As for Botswana its a side show to keep ARCM shareholders locked in awaiting news that will take years.
From RNS dated March 12th 2024
'The Directors anticipate applying approximately £2,000,000 of the Fundraise to the Potential Licence Acquisition Process and the Potential Buyback.'
The board's strategy is to spend a substantial amount of the fund raise on acquiring another exploration licence.
It is my belief that this strategy is wrong and I will explain why.
The board sold off non core assets to concentrate on the main asset, Zambia.
They then unexpectedly raised cash to purchase another licence in Botswana, We were told that they just couldn't say no to this asset at the price and I accepted that.
Due to the delays in progressing Zambia cash was running low. So much so that the board decide to suspend Botswana assay testing to preserve cash. Again to save cash any drilling through our 2023 winter in Botswana did not take place.
We then get the awful fund raise at 1.8p partly to buy out a Swedish institutional investor but also because cash was very low.
Anyway, having gone through this extremely painful process for retail investors we now at least have some cash.
We all hope that Anglo commit to an extensive, long lasting drilling campaign this year and find substantial copper. However, nobody knows how long this will take.
If they find one big copper deposit then, as I have said before, the only real way to buy into the JV is to buy Arc shares.
This is the dream ticket but everything takes an age. I was told the Zambian assays were sent off late December, three months later still no sign of the results.
It is my view that we should let Anglo do the work in Zambia as per the JV and the board should concentrate on Botswana, doing the exploration they had to suspend due to lack of funds.
Spending a very large chunk of cash on a new exploration licence commits Arc to spending additional cash under the terms of the licence, with little chance of a return for many many years (Zambia has shown how long it can take)
I have to ask where is the cash coming from? The annual money from the JV will pay salaries, overheads and maybe fund exploration in Botswana but not much else.
You may ask, why not write to the company outlining my concerns. Well I have done that but I just got the straight bat, basically saying this is the company strategy.
I haven't posted for a long time because the BB has become a slanging match and little else. However, I do think this is the wrong strategy when the hard work is already done in Zambia, conserve cash and wait for drilling results but at the same time progress Botswana,
I hope the next RNS is going to either give us the 2024 Zambia or Botswana drilling plan or the Zambia assay results.
Unfortunately I think it may actually be we have spent a large proportion of our cash on another exploration licence that you may see a return on sometime in the next decade.
AIMO