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Hey Mickey - with a goldmine and existing HNW investors already with a big stake / financial commitment, I think the odds are much better than that. Are these HNW's going to let this fall over and they loose their investment?
ATB
Legalwolf - I am not aware but full marks for a post planting further seeds of doubt. Maybe do your research first and get all the facts straight before posts like this?
That was a low punch and not required!
Unbelievable.
Have there been previous companies involving this BOD which have been left in bankrupt with a lot of debt? I seem to recall reading something about this last year when that online guy was raising his GCAT concerns with the FCA and its nomad and advisers?
He's raised over £2.6m in the last 10 months and the company is still in financial difficulties.
This listed at 1p and since then the company has been in decline.
I doubt he will ever to be in a position to say any of the statement below again, such a poor performance why shareholders even put up with it is beyond me. As none of anything he's promised has come to fruition.
RNS 8th October 2021
Robbie McCrae, CEO of Caracal, said, "Our focus at Caracal is on rapidly delivering on our strategy of becoming a +50,000oz p.a. producer and building a JORC compliant resource base of +3Moz within the next 12-18 months. Whilst we will continue to increase production at our Kilimapesa Gold Mining and Processing Operations, in parallel with this we will be focused on our aggressive acquisition strategy and on our exploration activities on our mining and prospecting licenses at Kilimapesa where the potential to increase our resource base is significant.
50/50 RM pulls it off
Decent odds I thought
Not even relisting - coming out of suspension
Relisting - not resisting
Hi Legalwolf - historically you were one of the posters who would back up logical points with facts - I was a little surprised not by the question which I think is valid but the surrounding inference about things being true of false.
I don't think there has been reference to Philoro since May 2023 and so I think that we can assume that they are not part of the equation anymore, otherwise I would expected ongoing references - could be wrong. Others seem to have stepped into the breach though as evidenced by the various RNS announcements.
I find myself increasingly try to correct people here with facts or put things into context - as such I am now seen as a rose tinted glasses supporter of Robbie. Wrong - I am sure that Robbie will be the first to say that he would have done things differently in the past. But I also have a great deal of admiration for Robbie for keeping the ship afloat under horrendous cash flow constraints and in the face of a wave of suspicion from other potential investors because of OCIM walking. The natural tendency is to think there must be something wrong if OCIM walked - not necessarily true. There must be something wrong with the accounts to make the audit take so long etc. Personally I think the auditors have a case to answer if the file wasn't worked upon for a period of time. Robbie has been able to attract more money over recent months but the big money required for the expansion plan is tied up in the prospectus and ergo the audit.
I tend to agree that upon resisting it will be choppy here to say the least irrespective of what any plan or finance solution is communicated. So be it. Each to their own.
CSS Alpha Global Pte Ltd has a debenture which includes a legal mortgage over the assets & properties of Caracal Gold Plc.
That's if you believe it all. With all the smoke and mirrors and bs that has been told to investors here, who knows if or what is/was true. What happened to the other party that was going to put in £3 million and according to GCAT, remained super keen and an option. Did they also decide to walk or what? All imo and dyor
Daniel - if you had been following this story closely then you will know that OCIM introduced a new and late condition precedent which was impossible to fulfil as the law doesn’t allow assignments over mining licenses in Kenya.
OCIM effectively walked away by asking for the impossible but not at the start of negotiations- it was an additional condition asked for late in the day.
Thank you JC. Your words of experience and wisdom are appreciated.
I agree. My point was more (as usual) JC suggesting it wasn't the great and mighty Robbies fault.
OCIM gave paperwork saying they wanted that commitment.
GCAT read it.
GCAT signed it.
GCAT announced the wonderful deal to investors.
We all bought shares off the back of it.
GCAT then (a couple of weeks after the event, nobody knows why....) announced it wasn't happening.
We all lost money off the back of it.
Rinse. Repeat. Every time they release an RNS. At least we're suspended now so the dry humping doesn't kick in.
Rose tinted DD - I wasn't invested when OCIM were about . But they couldn't go ahead with what OCIM presented - I did attribute to either party ... However OCIM wanted something they couldn't have by law so the deal could never complete , it's old news - very old news.
Clearly the company is in a precarious position and the story regarding funding has chopped and changed so much that who knows if any of it is true and what is going on. If it does get relisted, which looks like a big IF, without a credible financing plan, it will be a bloodbath.
Don't one of the creditors have security over the mine?
Since OCIM walked? How rose tinted can your goggles get?
GCAT walked. They didn't meet the conditions of funding so funding wasn't given. A refusal to extend a long-stop date is not OCIM walking, it's OCIM saying "we did give you until the 31st December.... It's now January."
Sounds like one of those conditions was near on impossible / insane, but it's not OCIMs fault nobody bothered to read the paperwork.
I'm expecting the company to possibly call another general meeting at some point, for a vote to increase the prospectus share issue as it looks like they've already pre-issued the original amount that was voted on.
I just not buying the funding is in the final stages of completion because there's been no heads of terms agreement (non-binding) and any potential corporate funder would want to see the audited financials as part of their due diligence.
The independently verified mine plan is also a must but there's also several passes between legal teams needed to draw up the terms.
There's nothing contained within the latest update to suggest funding is close but rather it is needed near-term and they are also exploring other options, which suggests the funding is NOT close.
The current production grades are consistent with the grades from 2 years ago, even though they are slightly lower.
The ounces produced is also lower and the jury is still very much out on the heap leach (from the limited information given).
Jersey crew
Thank you for taking the time to write that reply. Its genuinely appreciated and I take note of everything you have written.
ATB
SW's post below and specifically his/hers question about are the funders still there prompted me to revisit the RNS again:
The delay in completing the Company's audit for the period ending June 2023 (as announced 9 May 2024) has affected the Company's ability to complete the financing for the Kilimapesa expansion project.
So to me this reads that the financiers are still there and the audit is the hold up.
Also with remembering these paragraphs in particular:
The finance team are working to complete the audit and interim financials and are confident after recent feedback from PKF the audit is in final stages. As per the announcement of the 9 May we await the final timeline for the audit from PKF.
The Kilimapesa expansion project financing is still the key value creation event for the Company, the project was subject to independent review as part of the audit and again this confirms the robust nature of the project. The timeline on the audit and recommencement of trading is driving the timeline on the expansion funding.
So the word confident was allowed and also reference made to the independent review - the way this is phrased would indicate that GCAT already know the outcome of the independent review and its positive - why else state it confirms the robust nature of the project?
Words matter and the advisors who sign off these RNSs are sticklers for detail - its their job.
Keep the faith SW but you are right to switch off for a while. I'm confident we will come out of suspension but this roller coaster has been an awful ride for everyone.
Red Kite - you make a valid point about the tone but you also have to remember that the RNS would have needed the agreement of the advisors / nomad. Given the position with the auditors who refuse to commit to a date for delivery then the company has to be very factual in the wording. The future success of this company is dictated by the ability to ramp up production - its always been the goal. That in turn requires funding and that in turn needs the audit to be complete and for the stock to come out of suspension. So the RNS is just being clinical in setting out the position. What it can't convey is the sense of optimism and confidence as that would be open to criticism as trying to mislead the market and so that type of commentary would not have been allowed. The result therefore is the tone that we are reading. Personally I don't think anything has changed - we just need the auditor to deliver.
I appreciate your optimism JC as always, as a fellow long time Investor it's been nice to see some positivity.
For me the RNS was pretty much the final straw, I cannot remember the last positive RNS we received , it's just problem after problem and always something breaking or someone else's fault.
My main question is where has all that money gone they borrowed over the last few months? For me simply getting back on the market is the only goal I have at the moment , everything else is a bonus at this stage. There will have to be a mighty set of RNS / news to keep me holding .
I've lost what little respect I had left for Robbie, he's clearly been economical with the truth leading up to the suspension which kept many of us holding and also told quite a few mis truths along the journey
Are the funders still there, nobody knows now .
Ultimately if I have lost the considerable amount in here, I'm ultimately to blame as the signs were there.
I also wonder where the chairman has gone .
Anyway good luck all, I'm switching off for my own well being. I will post again if we ever get a good RNS
The tone of Robbie McCrea,s comment isn’t in the least comforting and clearly reveals the precarious position they are in. The impression is they are hanging on by the skin of their teeth and it’s only the gold price that’s keeping them afloat. A nervous time for all. Good luck everyone
I think you a very right there JC, however it's also worth pointing out that OCIM changed the deal at the last minute and that is why it fell apart - they wanted security of the Mine, which is not allowed under Kenyan law.
And the next funder that came along approached GCAT rather than the other way round.
Gold producers are struggling lol - No Gold producers (Majors) have record amounts on their balance sheets and are being pressured to reinvest or buy other assets. Perhaps some should take a look at GDX - and no that is not a cross ramp or stock! And GDXJ. When Gold moves the Majors move first , followed by the Juniors - it's not rocket science, and neither is the price - it has barely started. If you are taking a short, and I mean very short term view of Gold I really don't think many are prepared for what is coming.
With regard to Tanzania it's rather more complex than it was before, however African countries are fairly rapid with licences , you could be sat somewhere and wait over 10 yrs. Tanzania have recently changed the law regarding permits and licences . TYACKS are 100 % owned by GCAT and two licences are for Production while the other are older exploration licences. The Government have basically said unless you have the Financial clout to produce nothing is happening, GCAT were already going down this route so does not really impact them . "The government said on Tuesday that it will no longer issue mining licences to investors who lack comprehensive plans for value addition of minerals within the country." Extract 30 April - The Citizen (Tanzania )