GreenRoc Accelerates their World Class Project to Production as Early as 2028. Watch the full video here.
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There is life in the old dog yet! Potentially the start of people realising that a takeover is extremely likely here even if it won't fully value the asset.
Just had one nice thought, at least these shares are sticky. I've witnessed a lot of placings where they're all dumped often before they even get them
Well, for the asset I would suggest that the current market capitalisation is ridiculously low. All explorers have to go through start up costs but most start ups do not have anywhere near the resource that Chaarat has. Geopolitical risk is certainly a factor but let's not kid ourselves, serial misjudgement by the leadership is what has created this situation in the same way that Andrew Bell, for example, has ensured that RRR and RGM are worth very little.
On reflection i guess the ONLY way Chaarat had to raise money was via its Chairman - they knew this and accordingly made sure the placing price was LOW and their mates FILLED their boots - Dekel's hands were tied as the largest holder ultimately decides his fate. In reality despite the apparent "world class resource" and numerous expressions of "interest" "due diligence" and "negotiations" we have never received any formal offers - this asset is worth something however that figure is probably ALOT less when geopolitical risks and start up costs are taken into account. Worth buying at circa 5p - as 10p is probably fair value.
Complex stuff. This does smack of a takeover through the front and back door! Small PIs again will suffer. Share price seems to have been manipulated downwards (through press release and bad management) and then the placing is at a further discount to the new non-exec Chairman and friends. So anyone (I imagine a significant percentage) of PIs who bought over the last 2-5 years in the 7p - 45p (yes, in 2011 I originally bought at 45p!) range gets hammered. One way may be to try to average down (as I have done 2 years ago). The other is to hang in and wait for the £4.1 million to be spent on the BFS and pray it results in a price rise. The problem is that both are so high risk now because of the risk of a complete takeover which no doubt, will be at a substantially discounted rate and will cripple many of us long-suffering PIs.
All we get from Dekel is talk. At the same time he is letting banksters take the tusks from our sleeping elephant. The writing has been on the wall for months/years and still Dekel hangs on. Why? Because he is necessary cover for the smart guys... hidden in the shadows. He says his placing was oversubscribed at 5.25 so he scaled back the concert party amounts. If so why didn't he up the price. The truth is this placing has been worked on for months, look at all the detail and legal stuff that would have needed to be done to get get clearances and the fine detail on option. Remember just two months ago the sp reached 9p (probably when discussion started in earnest) plenty of time for concert party to manipulate price down. Then last week when sp was over 7 we get announcement and within a few days the fund raising is complete at 5.25p. However the record will show on day of placing price was 6.2 and only a 15% reduction to sp on the day of announcement but more like 40% from time when fund raising was started. And yes they could only find money from the largest shareholder and his friends!!! When did they contact other shareholders to take this option? Yes the existing bod took part but apart from CPT 2%+ (now ex-chairman and money man... Probably hidden part of concert party but with shares now free to be traded at any time, and would take their total over 50% when all option exercise), the rest shelled out £30k between them. What's that less than one months pay and they get to keep their jobs for the next 18 months. Furthermore by raising only £4m it won't belong before Dekel needs more money. Finally, just saw Interview. If you look closely you will see the back of a fag packet plan for time to production. It shows onsite construction starting January 2018 which is impossible due to winter at mine site but Dekel won't care because he'll be on an Israel beach by then probably selling ice cream!
the icing on the cake - a Dekal interview. enjoy. http://www.proactiveinvestors.co.uk/companies/stocktube/6050/chaarat-gold-holdings-ltd-eyeing-start-of-mine-construction-next-year-6050.html
Labro (plus friends) already hold OR have options / warrants for nearly 50% of the stock here. 30% of the stock is owned by directors OR one of the major shareholders. This leaves around 20% of stock available in the market place. IMO today's placing puts a floor under the SP. NOTE today's placing has actually reduced Dekel's shareholding despite him averaging his price down. There must be some upside here - probably not much but maybe 10p plus for the brave / stupid.
difficult to argue imo with the gist of last couple of posts
I suspect you are right - a takeover is inevitable. However, I am not convinced about the price range. I still think that this will move to a premium once people realise that a takeover is in the offing although nowhere near the premium that people would have hoped for. I expect the price to be more like 10p (i.e. nothing like the value suggested by the asset itself). It is pretty clear that the project has been handled poorly and I tend to agree with a previous poster that Dekel's position looks perilous.
Is now inevitable and just a matter of time. I suspect the take out price is going to be a shock to long time investors. My guess? 5-7p. Yes that bad. Nothing to go for here. Seriously better places to put your money now. Sad but true
Yep - glad though I cut my losses last month. I can only see history repeating itself with the SP. Another feasibility report that takes forever to produce, then it's questioned after it is issued, another recycle of costs and in the meantime the SP falls to 50% of where it is now. I'll take comfort watching from the fence now and not have to suffer my hard earned cash dwindling away. Think it's time for Dekel to go too.
when you consider that Labro + concerts already have 48.2% (if warrants / further placings are exercised) Adding the holdings of China Nonferrous Int'l Mining Co. Ltd, First State Stewart, D Golan, A Novak, UBS Wealth Management, Ruffer, Linda Naylor and Christopher Palmer Tomkinson they have over 70% of the shares. whats amusing is that if you go to the Chaarat website and download today's announcement - they have forgotten to rename the PDF - "v2 Project Stockholm Placing Announcement" - given Martin Andersson is Swedish its not difficult to work out who is pulling the strings here!!! http://www.chaarat.com/files/Project_Stockholm_PlacingAnnouncement_FINAL.pdf they could have had the common sense to re-name.
Well it certainly looks that way but of course will never be spoken of until it happens. Not sure of the rules but possibly with a t/o the concert party would have to offer to shareholders the same as the maximum price they purchased any shares within the last 12 months. That was not at a high price - 7p? Yep, here's the rules : "When a person or group acquires interests in shares carrying 30% or more of the voting rights of a company, they must make a cash offer to all other shareholders at the highest price paid in the 12 months before the offer was announced" From today's RNS : Following completion of the Placing, the Concert Party will hold 136,858,034 Ordinary Shares representing 38.9% of the Enlarged Share Capital. As the Placing was oversubscribed and Placing applications by members of the Concert Party were scaled back, it has been agreed as part of the Placing that members of the Concert Party may acquire up to a further 21,611,714 Ordinary Shares (excluding Ordinary Shares issued on exercise of Labro Warrants) within a period of six months following Admission without triggering a requirement to make a mandatory offer under the Articles. ------------------------------- In fact with warrants (soon to be @ 14.43p down from 15p (?)) the concert party can get to 48.2% ownership and still not trigger the mandatory offer. They'd only then need to buy a few further millions of shares to take them over 50% to then do whatever they wish. Anyway, don't think Dekel and co are going to let it all get taken over for single figures per share if they can help it. Tim Wonnacott would probably say 'we're in good hands' but I wouldn't !
With the admission that there is now a concert party at work, we could be in for interesting times. There is no doubt that these investors would like to take the project over and I suspect that, financially, they are in a position to do just that. At some point the view will turn away from focusing on Dekel's performance and move towards the next steps of the concert party. This could be coming to the end game here with the result being obvious. The question is at what price?
i like your optimism. Its good we have some funds for yet another study however we have pretty much sold the family silver to raise these funds. Given the holding of Martin Andersson (plus if you read the RNS the warrants and options for more shares for his cronies within the next 6 months of the placing) this will be taken private. I wonder if the Chinese will want to participate in the placing? I guess NO and then Labro will offer to purchase their shares. Our only hope is that the shares LABRO don't own are purchased for nearer 10p getting some of us out with something.
Terrible price but the 'elephant' is on it's feet again for a year or two. Could have been worse I suppose if we couldn't raise any money. We are now afloat and the Directors including the 2 Martins well aligned to the cause. The shares haven't been knocked down to the placing price which I suppose is a good sign. So, sit and wait until next May when winter recedes?
If that's the case then Martin Anderssons cronies will be buying today - Dekel has gifted the company / asset to them - I guess this was the price for him to keep his job. Are the board suggesting that despite ALL the interest in the asset this was the best way forward...
It seems my post just a week ago was spot on. Dekel makes me chuckle, raising a 'modest amount'... yeah it'd be modest if you were valued at £160m rather than £16m! 25% dilution is not modest Dekel.
The below % goes up to 48.2% when warrants are taken into account. This is a back door take over.
Labro will hold 38.9% ( this includes cronies of Martin Andersson who have participated in the placing)
They have all filled their boots - not surprising given the placing price. Even Linda husband has bought some. Where was our opportunity to participate?
Price of 5.25p is rather depressing. Least we can pay Dekels salary now for the next few years.
If Chaarat is a Sleeping Elephant then Dekel could be Dumbo. The BOD have spent over $10m per year of the lifetime of this project which was supposed to been producing sortly after at least two previous funding rounds. Now we can expect a funding round to just complete another feasibility study, I think this will be the third one. Boy those engineers really like to give Dekel the benefit of their experience, unfortunately he never seems to be able to stick to a plan. Any plan! Now with our White Knight has arrived, with some of his buddies to slay this dragon and take Chaarat to a better place. The problem is do they have the experience of mining and are their interests direct aligned with those of ALL the shareholders. The new Chairman will have a duty to look after the interests of all the shareholders not just the few, himself and some of his friends. Dekel should have had a money raising well before now, when it is absolutely necessary, he as put us at the mercy of the men with money and the friends of the new chairman. Expect the Elephant to go down before standing back up to reach a much higher price. We are in for an interesting ride.
If he doesn't then we will have major issues in terms of company value