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Well the line was in construction and we were just waiting for a shilling (or Real) meter. It's gonna take some change to run that bugger !
Is the news today part of the new plan or something that would have just happened anyway?
On Saturday I wrote...
'... Start the mine build, and shift the pressure back onto the potential investors by bringing some more to the party from the US and Canada. Get on the bus, or miss the bus as all the seats will be taken... To follow through on this game plan the company will continue to put pressure on investors by releasing lots of progress and news. We may see a different beast over the next six months than the previous six.'
I stand by the post, I think we may see a much more prolific news flow, but obviously one RNS doesn't prove the case.
Interesting though
I thought he looked a little nervy but put it down to guilt that he knew he had agreed a 7.5p price point some time back no doubt (below what could have been achieved for current shareholders - witness the 3x oversubscribed).
I don't subscribe in the current nickel environment to the list of negatives and problems that PP has speculated on in the opening post on this thread.
I'm sure this will likely be the catalyst for off takes, which will be the trigger for the rest of the finance deal.
pickedpeck
“ I thought Jeremy looked uncomfortable in the BRRmedia interview.....”
Agreed.
TDT
yes,
JM needs to clarify how fund raising now changes the debt/equity financing going forward, if at all
Will do Blue.
I thought Jeremy looked fine and came across pretty confidently.I am firmly in the camp that this deal was to strengthen the balance sheet to give us maximum negotiating power with the debt providers.
In my mail to Anna,I also asked if we can expect a lower equity component now in the main deal-doubt she will answer that though.
PP,
I have seen a couple of offtake agreements signed on just PFS and DFS completions. This is why we will get offtake agreements within next 1-3 months I am sure
"they still haven't signed any off takes, possibly because the mine build hasn't started. Negotiating simultaneously may have been just too hard."
Ivor, good point
"he looked uncomfortable probably because he had told shareholders that the package would all be announced at once. Clearly this has not happened and now he has gone back on his word."
I agree that he looked uncomfortable probably because he had told shareholders that the package would all be announced at once. Clearly this has not happened and now he has gone back on his word.
My understanding of the deal before this week was that debt with five banks, ECAs for equipment loans, local banks adding to the debt, off takes with potneital for up front payment, and the cornerstone investor to pick up the balance in placed equity.
Either my understanding was wrong or the plan just went through a major change.
I thought Jeremy looked uncomfortable in the BRRmedia interview and I have been trying to think why.
I think it's likely that they have not managed to qualify for ECA credit for the equipment, the debt raise is harder than expected, and the cornerstone investor didn't want to cover all the equity and has forced them to raise. Meanwhile they still haven't signed any off takes, possibly because the mine build hasn't started. Negotiating simultaneously may have been just too hard.
Jeremy was uncomfortable because he had been backed into this corner. Mum and Dad (Teck and Glen ore) haven't helped out either.
So I think this is a gambit to break out of the corner. Start the mine build, and shift the pressure back onto the potential investors by bringing some more to the party from the US and Canada. Get on the bus, or miss the bus as all the seats will be taken.
For us PIs this means essentially the game is now afoot and running. To follow through on this game plan the company will continue to put pressure on investors by releasing lots of progress and news. We may see a different beast over the next six months than the previous six.
What I don't see is a calm steady cruise towards finance against the original plan, JM and the board after being put into check have thrown the pieces in the air and said let's play a different game!