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@Vii, Messaging you here as you're more likely to see it.
I'm still hoping to walk round Tungsten West next week on one of these site visits. Probably Tues or Friday. If I manage it I'll report any findings on that BB.
Busy week so I can only really fit one in - even then it will be dependent on work commitments.
I notice from the application form that Cornish Metals is already fully booked out, as is Cornish Lithium and Wardell Armstrong's lab.
Did you manage to book on one of these? If not you may be too late.
ATB LB
BTW if you are still following the S.A. REE project - some interesting developments there this week.
^^ Sorry CUSN investors for all the blatant cross ramps. ^^
Looks a good addition to the exec team.
A strong background, with plenty of experience.
Fantastic news. Great to see all the images which bring home the huge effort that all are making to bring back South Crofty.
Thanks LB.
Morning all. Spotted a couple of posts regarding WTP and dewatering. Must be getting close to switch on.
https://www.linkedin.com/feed/update/urn:li:activity:7101252725362810881?updateEntityUrn=urn%3Ali%3Afs_feedUpdate%3A%28V2%2Curn%3Ali%3Aactivity%3A7101252725362810881%29
https://www.linkedin.com/posts/colin-smith-a3a57a79_pipework-fabrication-southcrofty-activity-7100466528382275586-xMzT?utm_source=share&utm_medium=member_android
https://www.linkedin.com/feed/update/urn:li:activity:7095690480352391168?updateEntityUrn=urn%3Ali%3Afs_feedUpdate%3A%28V2%2Curn%3Ali%3Aactivity%3A7095690480352391168%29
ATB LB
Yes.. 15K @ 2.2 ave.
Hit $4 yesterday.., thinking of trading this now - sell / buy back.
On yahoo usual talk of this will hit 15,20,…
Maybe one day but it’s about making £££
Not looking confident here with CUSN , ATM!!
Yes, doing very well at the moment. Do you hold any ?
If CL can start DLE production from the brine it would be great for CM. That was partially why I bought into them initially but then used my gains to add to my E3 . Depending on timing I may well buy back into cusn but I want to ride E3 somewhat longer.
…and on the rise!! Fingers crossed for more of this.
Good luck
This sounds like we have been down this road before !!!!!
It would depend on the market cap of the company.
>>to fund managers in London and the USA.
You pension find managers?
CL was an unlisted company with no assets, of course existing Shareholders get diluted.
>>Yorkshire potash mine
Needs $4bn doesn't it.
These mines are already built. Vastly cheaper.
The market now knows what to expect from a financing if the government backed UK Infrastructure bank is involved. The kiss of death for shareholders.
The reaction so far today, CUSN off 5.4% and SML off 12.5%
This proposed deal (for Cornish Lithium NOT Cornish Metals) sets a very bad precedent for the involvement of the UK Infrastructure Bank with any of the mining companies in the South West. If the UKIB is going to behave like a vulture fund with taxpayer's cash, who will want to go to them for finance? Furthermore, as an arm of government , the UKIB should be helping with the political aim of leveling up, NOT arranging the transfer of value from SW pensioners to fund managers in London and the USA.
This will end up the same as the Yorkshire potash mine,where more and more funding requirements will mean in eventual nil premium takeover by a giant mining company who have deep pockets..The company will have to accept as no further funds available to them..
Price off here on consideration of the Sunday Times article?
PAWGEE
It is worth considering the impact of tranche 2 on existing holders as well as tranche 1. The options for tranche 2 mean the new investors will scoop the pool again if the company has huge success.
Existing shareholders should insist on the same financing offer being made to all investors at this stage. To do anything else is unfair and divides the cake very unevenly. My view is that ordinairies should be offered to all at whatever the clearing price is.
Vii - the controlling votes of existing shareholders are held by a very limited number of individuals with large holdings. Even with the likely dilution levels and disparity you highlighted, these guys are still going to win big if CL hit the brine mother load.
What will be interesting is the level of interest in the £6.9m Crowdcube raise planned in the near future. Imho they’ll hit that figure on day one. Will eat my hat if I’m wrong!
Pawgee
Thanks for the post. I agree.
The same deal should be offered to both existing and new shareholders. First to existing and then to new to the extent existing do not take up enough of the offer. It would be interesting to hear how this one sided deal has come about.
Have the new boys been able to run down the clock until there is no time left to go elsewhere?
It appears that the current deal, involves a transfer of existing value from existing shareholders to new, a bigger proportion of what results for the new boys, and options for the newbies too, so if it is a great success they can scoop the pool again. Why is the UKIB, set up by HMG a party to this?
Other companies in this industry have now been warned that UKIB is happy to be involved in vulture type deals.
I hope the CL shareholders vote it down and insist on the same deal for all. It is called "equity" after all...........
Vii
Times article highlights many of your thoughts on the disparity between existing small shareholders and the new funding deal
https://www.thetimes.co.uk/article/14f4d8a8-3e6f-11ee-87d9-ff29f95b54f7?shareToken=10f392b348e77f1ebb421174b80cbb22
Lovelyboy
I seem to remember reading that the tailings were going to made into a slurry, so one could deduce they are planning to pump it back into the mine voids. I wondered if they could make it into an aerated concrete as they did at Combe Down near Bath where they needed to improve the structural integrity of the ol coal mine workings.
In this proposal, for every pound these new investors put in, they may receive up to 15 ordinary shares. For every pound a crowdcube investor puts in, they receive 5 ordinary shares - a third. Although the price offered to both sets of investors is the same, what happens to the new shareholders money before receiving the ordinary shares is very different to what happens to Crowdcube investors money. The new investors will first buy CRPs and receive dividends capped up to 14% per annum, probably paid in the form of shares, so their money gets compounded up over around 4-7 years, possibly more than doubling, before it is invested in the ordinairies, whilst crowdcube shareholders have no such arrangement. Furthermore the new investors are offered ratchet warrants.
Source see Ordinary Resolution:
1. AUTHORITY TO ALLOT SHARES parts a,b and c of
https://cornishlithium.com/wp-content/uploads/2023/08/Notice-of-General-Meeting-signed.pdf
You will find that the company is seeking authority to issue up to 813m shares (£34,500+£37,300+£9,500) at 10,000 shares to the £1- to satisfy the requirements of the £53.6m first tranche. That works out at 6.6p per ordinary share. Whilst all that authority may not be used it shows that the two offers are remarkably different. The puzzling thing is why existing shareholders have not been offered the same deal as the new investors. It is also surprising that the UK Infrastructure bank appears to be a willing party to this unfairness.
Cornish Lithium investor canters towards becoming £1bn ‘unicorn’. Story now also in The Times
And the logic follows that for TechMet to become billion $ unicorn CL’ s worth could be a large part of that.
https://www.thetimes.co.uk/article/c5d8bc04-3ba2-11ee-81cd-1bf34cc855cb?shareToken=15a98dfc900fef830606aec477275321
I expect that the equity investment will enable partial borrowing for publicly traded entities like CUSN and RBW.
But these funds don't complete against each other, rather all come in on the same terms. So yeah, there will be some dilution, mitigated by SP increase I hope.
Techmet also invested at a premium to the current SP, so there is that.
Pawgee
Thanks for the post. Interesting to see that Lansdowne are invested in Techmet, which recently announced a deal for Cornish Lithium. Lansdowne is providing the finance to keep TUN going through the Environment Agency and local authority permit delays. Wonder where they will crop up next? With UKIB, EMG and Vision Blue resources also on the SW scene, finance now seems to be flowing. Lets hope competition emerges amongst these "big boys" so that it is more difficult for them to "dilute" the small private investors.