Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
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Seen it, so added a tiny buy myself
Look out for a delayed print
Someone pulled the trigger. Maybe WRE transaction about to get wrapped up
Full steam ahead if so
Thanks Rose.
Been adding when I can. Excited about the deal.
Hi OAPK, we know from the deal announcement that there is potential dilution of up to 30% from the CREASY/WRE acquistion, and maybe they have to sell a few more shares to fund exploration for up to 40mn oz, yes, 40 MILLION OUNCES!! Frankly, do I care about 50% dilution? Not on my nelly.... Reason? What are we getting in exchange? Potentially 40mn oz vs the 220k or so we have in hand in the Carolinas. We have just acquired an asset that potentially has 18,000% more gold in it and could end up being a new gold field. Don't forget that you can always buy more shares in the market at these levels, slightly below the recent capital raise price, that would prevent dilution, and you would be getting stock at a cheaper price than the "Gnomes of Bangkok"!!
So for my money, who gives a damn about 50% dilution if we get an 18,000% uplift in reserves? Surely we are splitting hairs here. Also agree with genius that confirmation that the WRE asset acquisition is completed will support the price. Its a slam dunk anyway. Its in the power of the Business Reorganiser to grant this and it has already accepted LEX's offer, which LEX has already raised money off the back of. Its happening!! And its crazy cheap!!
Video interview below ;
“…One of the reasons that Lexington has a strong following is that shareholders know that we unlock value by putting the money into the ground. We are not a lifestyle company. Every single cent is turned over three times and we make it work for us…”
https://total-market-solutions.com/2023/07/lexington-gold-ltd-july-2023/
Dilution ?
Very encouraging results from Argo Asset.
WRE acquisition being completed soon should really spark this into life
Results of surface sampling programme at Argo Project, USA, confirm and define surface gold mineralisation of over 10 g/t
Lexington Gold (AIM: LEX), the gold exploration and development company with projects in North and South Carolina, USA, is pleased to announce assay results received in respect of the completed surface exploration and trenching sampling programme at its Argo Project (the "Argo Project" or "Argo").
Actually its Nealon who is the Witwatersrand expert among this new configuration of WRE/LEX. Nealon was involved with Aquarius Plats and Sylvania Plats and if you google him, you will see he has great knowledge of the geology of the area. I reckon that's why Creasy injected his assets into LEX, to capitalise on the South Africa knowledge bank already in place there.
As to ounces, I'll be happy with a million or so... after all, SA gold is alluvial in the Wits, you find a bit, you're likely to find much more. But agree that the more the merrier.
If we can prove up and get a JORC for several million ounces by year end then 10p will be left far behind !
We have the licences, we have the funds to drill, we have the historical data and we have Mark Creasy on board who knows a thing or two about that part of town. Very exciting !!!!
Sensible post and completely agree. This will be trading 10p+ by the end of the year
Yes, the price reaction after a very successful premium capital raise is disappointing! However, if you look at the fine print in the announcement of the deal, we can actually learn quite a lot and take heart from it. In particular the take up of shares by shareholders we know own a large portion of the company, the "Gnomes of Bangkok". The very fact that they seem to have taken up half the issue (that we know about) is very telling. Either that, or they are suicidal lunatics. Chairman Ed Nealon also converted his debt into equity. So has Creasy. Why would he do that if he were not 100% confident in the asset that LEX has just bought, especially given the fact that he is supposed to be something of an expert in the Witwatersrand by all accounts. What is not mentioned in the sub text is that there are probably quite a few smaller, but significant shareholders who also took up shares in the placement too. So my guess is that there is quite a bit to look forward to.
1) We are also owed the results from the exploration work that went on at the Argo concession in the Carolinas which was done before the deal was announced. 2) Now that the deal is confirmed and money successfully raised, you would think that it is probably about time for the house broker to release an updated report. It will be interesting to see what their new target is going to be..... 3) There will doubtless be announcements in the near future about details of the drilling program in South Africa.
Anybody who bought the shares in the placement expecting to make a killing in the short term is going to be disappointed. However, I reckon it is true to say that if a smallish portion of the stock was placed by Peterhouse and WH Ireland to punters, it may well be them selling off the stock and hanging on the the warrants which have real value with a 3 year maturity!! On the other hand, I can't see many holders wanting to dispose of their newly acquired stock at a loss which they would be right now. It is reasonable to assume that 5.3-6.0p may become an important support level, especially as it was a resistance level on the way up.
Patience is a virtue, hang tight and pick up more from those silly enough to sell.
It’s down over 40% from recent highs
Nice tree shake going on by MMs reminds me of 6 months ago before we seen 100% rise
Very low volume. I expect the buy taps will turn on again shortly
.
Well well, whatever my opinion re BRICS CBDC, LEX never ceases to amaze. The core shareholding group and the BOD always seem to want to extend a helping hand, even in these markets. Unlike one or two cautious individuals who still seem to be sceptical as to what a bargain LEX has just acquired, they are further piling in there and supporting management to the hilt. Not only that, the placement was done at a premium!! Albeit a relatively small one.
So, looking at the purposes of the deal, and what they are going to do with the funds, it is pretty obvious that most of it will be spent on South Africa given potential amount of ounces up for grabs there, over 35mn! However, its also a fair bet that the company will not want to lose its interests in the Carolinas and will spend whatever is required there too keep and expand the JORC compliant resource. Longer term though, one has to ask the question whether LEX will stay in. Proving up between 500K and 1mn oz in the USA will take up just as much management time as proving up 35mn+ oz (or more, heaven forbid?) in South Africa. I would not be surprised if management decide to maximise the value of the Carolina properties and consider selling them, maybe to Romarco, the owners of the Haile mine which isn't too far away from our JKL spread. But that is all in the future.... I reckon all the attention will be on the South African assets which I still can't believe they have acquired for the price they have!!!
Looks like LEX has come up trumps again, without the help of Donald!!
Frankly, I am not sure anyone will really give a toss about a BRICS CBDC. The main reason is that the participants are all either flawed democracies or autocracies. If the central banks of all these countries are under the thumb of their respective ruling parties, which they are, it would be impossible for a sane human to trust them. However, it has to be said that there are many insane people who believe and live the crypto dream, perhaps they would be silly enough to compound their errors by backing an initiative hatched out of cryptomania last year, just before the bottom fell out of that market. Accept that CBDC may be backed by gold held by BRICS central banks, but would you trust this lot; Putin, Xi, the ANC. Modi (maybe) or Da Silva (maybe, but he is a socialist so has rose tinted specs!!). Its a tall order.
So BRICS will release a gold backed CDBC by the looks of in August. One would imagine an extraordinarily large gold resource in SA would be regarded as something that should receive alot of government support. Stars continue to align for LEX.
Markets, fortunately, are NOT perfect. If they were, it would be no fun investing in stocks because in a perfect market everyone would have info on everything at the same time, which of course, is totally unrealistic!! Hence, if the market is pooh pooh-ing what looks like an amazing deal, just pounce on it and get the stock bought.. It really is very silly where this stock is valued.. Thank heaven for imperfect markets.... much less boring that perfect ones, more opps for making super returns!! Bring it on LEX..
This company needs to get some exposure. The board is doing everything it can to turn this company into a highly successful enterprise. I would've thought that creasy joining the team would have turned some heads. People need to be told
Market doesn’t seem to like the deal
So We're all done and dusted. Agree with your points SJH, and I am sure that we will get the info that you are asking in the fullness of time. Lot's of planning will have gone into this, where to drill, how to drill, etc etc., in advance of the actual takeover. I am hoping that they will hit the ground running, though looking at the share price to day you would not believe it...
I think we just need to get Creasy out talking now. Let's get his followers on board and we should see some near momentum. As I'm a long term holder I'd like to see a structured plan put out that we can judge the board on. I've no doubt we can 5x here in short duration. How will we navigate the current instability in SA infrastructure management. How long to get the WR site reserves proven upto regulatory standards. How do we extract valve from the USA sites. The board still has some convincing to do of the wider market here I'd of thought we would be trading much higher currently than we are but then again it's a opportunity to add a bit more.