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https://www.asx.com.au/asxpdf/20191120/pdf/44br9h2df8vsj3.pdf
Where does that leave PIs? They are getting 51% of EMH for a bargain price are they not?
Looks like we’re set! We get 55 mill AUD/34 mill Euro but more importantly the brakes are off! CEZ gets 51% of geomet (EMH subsidiary)
So what does this mean to dilution of EMH shares? Is the stake in geomet effectively money that’s purchased EMH shares? In other words will they take approx 134 mill shares in EMH?
All subject to shareholder approval, but I’m excited!
Seen it on twitter haha
https://twitter.com/CzechLithium/status/1196919746836385792
Awesome news!
GLA
Sounds like we have a fully funded project and of course no more problems with licensing/permits ..... the breaks are definitely off and we are finally up and running.
Exciting times
No more Cap Raises until Production Capex too Lawrence and Tom Coves , Share registry is still very tight , will be interesting when the world catches on to the enormity of the project now that it is derisked tremendously .
If my numbers are right and this investment buys EMH shares at the market rate, then we have only diluted to less than 300 mil total shares - a sensational result considering no further cap raise. I was expecting 400m+!
Should be an interesting day tomorrow.
Just a shame i only have £500 spare for a top up, better than nothing i guess.
Gla
The fact is that we are losing control of Geomet and the Cinovec project altogether by giving away 51 per cent of Geomet. The money goes in the Geomet coffers for the further development of Cinovec and the DFS, which now is due in 18 months!!!!!!!!!!!!!!!!! We are selling billions for peanuts. The price that they are paying for the 51 per cent of Cinovec is ridiculous for the enormity that Cinovec is. I don't know what people here are celebrating, we sold ourselves cheap. And I am still trying to figure out what's in for us the EMH shareholders. 5 directors to be appointed to Geomet, only 2 proposed by EMH. We don't have any more part in any decision making as far Geomet goes. Correct me if I am wrong please.
In order to facilitate the
timely progressing of the DFS, Geomet will enter into a service contract with one or more third party
contractors, provided that EMH will be appointed to provide services of managing the Cinovec Project
development.
So what happens if EMH is not appointed to provide services of managing the Cinovec project?
I am no expert in these things, and rely on what makes sense to me plus what I read here and there. That said, firstly we needed money and a strategic partner which we appear to now have. As nice as it would be to get 40p per share and not 21, I think it’s overly optimistic to expect much more than current market rate. I agree it’s a little scary to give away three out of five seats and effectively control, but KC has enough skin in the game that he’s not going to broker a deal without his own due diligence to protect his own position. Still, I agree it’s a bit scary. As for DFS, we probably don’t even need it now with CEZ’s ability to mine or arrange mining - we don’t need to convince anyone of anything to proceed with the project. Permits will hopefully come raining down now and intos just might now have the confidence to engage.
As I say not a particularly informed set of opinions but makes sense to me
If this goes through we will just be minority holders of a company owned by the Czech republic government, because that's what Cez is. Is not that we have so many assets and we decided to sell the majority in one of our companies. THIS IS THE ONLY ASSET THAT WE HAVE.And giving it away.
The office (EMH)
David Brent (KC)" I have good news"
Staff (us) "What is it?"
DB (KC) "I have given away control of the company"
Staff (us) "Why is that good news?"
DB (KC) "I get to keep my job"
So what’s you guys’ take on why KC has negotiated this considering he holds so many shares and has a vested interest in our success?
Maybe he was getting tired of the situation and the shenanigans and decided to retire with a good package behind him.
I don’t think KC has a lot of options in this situation unfortunately @tomcoves - guess this is the price of a Czech blessing.
Expensive huh?
Tsibis that makes no sense to me. He’s holding 10mill shares or whatever it is, and doesn’t make the best decision to convert those shares into tens of millions of dollars and instead risks it all in a deal with the govt because he’s tired and can’t be bothered any more, after putting in this many years of effort? Doesn’t wash with me. Too much personally at stake imo
Sorry mate, it doesn't have to make sense to you or me or anyone else. Who told you that everything has to make sense.
What say You now trolls???? Please convince us now that this is a great deal for the EMH shareholders.
CEZ as the majority stakeholder of Geomet will make all the decisions, about everything, mining, takeoffs, financial matters. EMH will just become a bystander. ASX already 20 per cent down. I think the market is responding accordingly. Pity. Still have to vote for it but I think it will go through.
Fair enough tsibis but for me what makes sense is pretty relevant, at least to take into consideration. We can happily agree to disagree.
Is the deal optimal? Nope, but it was never going to be because CEZ were always going to negotiate hard. Was the deal necessary and acceptable? For me, it’s an easy yes and pending more info I’ll vote to push it through because it’s basically a major step forward albeit at a price that isn’t amazing for us.
I still will personally factor in KC’s personal posi
Listen, a few months ago I said that we should pray to get a deal with CEZ because otherwise there was nothing we could do to advance the Cinovec project. I could never think that that was to sell 51 per cent of Geomet for peanuts. Of course is better than not going forward at all, but we got screwed big time.
As a LTH I have waited for many years for such positive news and had high expectations around this project.
As i read this announcement i am struggling to see the positive. According to KC the DFS was being worked on and if memory serves me, we should of expected it to be completed by Dec '19. Not the case.
We have entered into a takeover at nil value and gained funding upto DFS completion which was 'suppossedly' being worked on and near completion. So my question is what have we actually gained by selling 51%??? In my view nothing!
The story starts to read like brexit, kicking the can down the road on the basis of what!!
Maybe im being harsh but...
If the government have a hand in the project, mining licences will be approved. With CEZ funding construction cost (£200mil??) we don't need a DFS and BFS. The only part of the study needed is the directing to point the shaft drill. Who cares if EMH is in control or not when they own 49% of a company that WILL a fortune as opposed to 100% of a dream. It's still a good deal. Tblisi needs to get off this board for a few minutes, take some deep breaths and get 51% on repeat out of his head.
Strange days trading in Oz.
Plummeted to -27.5% and then bounced back to -5% before one measly trade took it back to -12% at close. About $100,000 value traded for the day.
Over to you London .. Oz will follow your lead tomorrow as is usual.