Member Info for akramms

6 September 2021



Marechale Capital plc



("Marechale" or the "Company")



Completed Fundraise for UK Based Lithium Exploration Client





Marechale Capital Plc (AIM: MAC), an established corporate finance firm providing strategic, M&A and advisory services to a range of growth companies, is pleased to announce that it has completed a transaction with the lithium exploration and development company, Weardale Lithium Ltd ('WLL'), in which Marechale has an 8.7 per cent shareholding.



In connection with its role in the transaction, Marechale subscribed for founder shares at nominal value. Based on the value of the recently completed fundraising transaction for WLL, Marechale Capital's shareholding in WLL is valued at £1.5 million, excluding additional undated warrants which were awarded as part of its transaction fees for advising, and raising funds for, the company. Additionally, Marechale has secured the right to be awarded further warrants over WLL shares for any involvement in future fundraising rounds. Mark Warde-Norbury (Chairman of Marechale) has joined the board of WLL as a non-executive director.



WLL is a lithium exploration and development business based in the Weardale Valley, County Durham in the north of England. According to the Climate Change Committee, 46 per cent. of all cars on the road will need to be zero-emission vehicles by 2030 in order to meet the UK Government's plan to cut carbon dioxide emissions by 68 per cent. Lithium is a key component in hybrid and electric vehicle batteries, making it a sought-after commodity. With the rise in electric vehicle manufacturing, lithium producers anticipate increasing demand for years to come. Marechale's holding in WLL provides its shareholders with the opportunity to invest in what is expected to be one of the first lithium exploration and development companies in the north of England.



This transaction is an example of the most recent equity investment in a client venture, and is over and above the balance sheet increase recently announced in the Company's annual results. The majority of Marechale's share placing funding from earlier in the year has been invested in, or committed to, a number of these completed and ongoing transactions, taking the form of equity at attractive valuations and high yielding loans with warrants attached.



Marechale continues to maintain a healthy pipeline of new corporate finance projects, and the board believes that the accumulating and maturing warrants, equity and founder equity investments in the Marechale corporate finance portfolio of client opportunities have the potential to generate material value to shareholders in the short and long term.

...

https://www.lse.co.uk/rns/MAC/client-fundraise-completed-tq166hjc72gq70r.html

Before Origin owned 35%, Sasol 35% and Falcon Oil & Gas 30%
http://www.gasprocessingnews.com/news/australias-origin-energy-doubles-stake-in-beetaloo-shale-gas-field.aspx

Origin then purchased Sasol's 35%, to give them 70%

and later 7.5 % from Falcon to hold 77.5%, for Falcon Oil&Gas to be carried for an additional AUD$150
https://www.sharecast.com/news/aim-bulletin/falcon-farms-down-another-75-of-beetaloo-to-origin-energy--7419128.html

Do you see a pattern

Now Origin own 77.5% and Falcon Oil &Gas 22.5%

7.5% then, was purchased for AUD$150.5m
so simple calculation based on this Falcon's 22.5% would be $AUD450m alone.

The recent results puts Falcon Oil and Gas in a much better position and they are carried for total of $AUD263.8m

By my estimate Falcon Oil and Gas should be valued minimum
22.5% at AUD$450M + AUD$263.8M Carried = AUD$713.8m = £384.58m Market Cap @ 39p+

Falcon Oil&Gas Current Market Cap = £98.7m @ 10.05p per share.

Market Cap 5.0m

-- Revenue GBP11.33m (2020: GBP10.93m)
-- Gross profit GBP2.16m (2020: GBP2.05m)
-- Net cash GBP4.15m (2020: GBP2.74m)

http://www.dcdmedia.co.uk/investors/shareholdings/

I agree, they shouldn't need funds, as the Production in US is increasing which is bringing in revenue andwill be paying off their Atomic Acquisition, which was financed

But they should keep some funds, to consider acquisition that are already producing, rather than undeveloped.

OPL 226 has been extended to Oct 2021, I believe. It was in the Propectus.

Although COPL needs to be cautious and not put all funds into one basket, since they are already making considerable amount already with their portions of the wells, in US and they are the operators via Southwestern Production and have the pipelines assets

Nigeria Asset is much greater, and the recent passing of PIB, which has been ongoing for over 10 years.

and each well able to generate 1000's of barrels per day, they should be keeping funds to increase their asset in Nigeria, since they will only have 90 days after first well to increase their percentage.

Don't put all your eggs into one basket.

plus they can increase their interested from 10% to 30%, in their JV with Essar Nigeria

Southwestern Productrion Corp affilliate of COPL, being the Operator.

Southwestern Productrion filed claim and not other way round thank god.

COPL has enough cash to buy Cuda Oil & Gas outright.

Cuda Oil & Gas is in too much debt, including owing to COPL.

And recent financing $4m, only puts them in more debt.
They are hanging on by a thread for to get even higher production from these wells to help pay their debts.

Cuda's Price will drop

COPL's will rise and when time is right, COPL will snap up CUDA at bargain, and offer Cuda COPL shares at HIgh Price per share.

"On August 4, 2020, the Company announced that ShoreCan had executed definitive agreements with Essar
Mauritius to resolve their disputes. ShoreCan and Essar Mauritius entered into a Sale and Purchase Agreement
(the “Essar SPA Agreement”), and other agreements, with each other concerning, among other things, their
respective obligations under the Essar Nigeria Shareholders Agreement (the “Shareholders Agreement”). On
February 1, 2021, the Company announced, that ShoreCan and Essar Mauritius had agreed to extend the
completion date of the definitive agreements to April 30, 2021. This definitive agreement has been extended to
July 30, 2021"

Page 28-29

https://webfiles.thecse.com/sedar_filings/00021327/2103291640506877.pdf

https://thecse.com/en/listings/oil-and-gas/canadian-overseas-petroleum-limited

The company has started generating revenue from 1st Dec 2020, the date the deal was struck, over the 4 months the average WTI is ~$50/barrel

1400bopd from 1st Dec 2020 gives ~$7.7m in just under 4 months @ $50/barrel average.
1400*50*110days from Dec 1st - today.

https://www.dailyfx.com/crude-oil

"-- The Acquisition is significantly value enhancing with a transformational impact on the Company

-- It represents a step change in COPL's strategic growth opportunities
-- It provides an immediate and growing revenue stream from 1(st) December 2020, the effective date of the Acquisition

-- There has been a 65% rise in the oil price since COPL entered into the transaction which has enhanced the overall value of the proposition. The terms of the acquisition were negotiated at WTI $39/bbl. - the current WTI price is $65/bbl."

https://www.lse.co.uk/rns/COPL/completion-of-atomic-acquisition-ppzcbke74ezprxx.html

oops meant 1st Dec 2020

https://www.lse.co.uk/rns/COPL/completion-of-atomic-acquisition-ppzcbke74ezprxx.html

$4m worth of shares ( 818,873,319) also settled, to Atomic/SWP, this equates to only 5.5% of total shares.

Shares issued at 0.3497p, this is great for COPL because on Dec 1st 2021, when agreement was made, share price was around 0.2p , by my calculation they have saved $3m.

Total shares now in issue 14,863,619,791

"In connection with the acquisition of Atomic and SWP, the Company issued a total of 818,873,319 common shares on 16 March 2021 at a price of GBP0.003497 (or 0.3497 pence) per common share as consideration to Atomics' and SWP's previous shareholder."

Offer Letters for the Nigeria Marginal Field Bid Round have been sent to Potential bidders on 02 March 2021. Expect to hear NEWS VERY SOON from ADME.

ADME is in a great position, to leverage as they already have $120m financing from Trafigura. Trafigura will also invest out of their own pocket $20m to invest with ADME.

"Through an indicative memorandum of understanding (MOU) the companies intend to create a strategic alliance to develop energy projects in Africa.

ADM is seeking opportunities in the African energy sector to present to Trafigura."

https://www.proactiveinvestors.co.uk/companies/news/939846/adm-energy-extends-agreement-with-trafigura-939846.html

And they will not be going a placing, instead raise funds by other means at a premium.

https://www.proactiveinvestors.co.uk/companies/news/941726/adm-energy-mulls-fundraising-investment-in-nigerian-discovery-941726.html

The Department of Petroleum Resources (DPR), Nigeria’s regulatory agency for the hydrocarbon industry, has distributed the third letter in the series of correspondences it has been sending to, apparently, the 161 companies selected as winners of interests in the 57 marginal fields on offer in the country’s second marginal field bid round.

The third letter specifies the percentage awarded to the recipient and the signature bonus expected of it by government. The letters were emailed on March 2, 2021 and the authorities expect the signature bonus to be paid in 45 days, and it could be paid in either the local currency Naira or in US Dollars.

The total signature bonus per field ranges from $5Million to $20Million, but since no single field is assigned to a single company, the signature bonus demanded from each company correlates with the percentage interest in the field offered to the company. If the entire signature bonus charged to Field A is $5Million, a company assigned 20% equity in that field is asked to pay a signature bonus of $1Million.

Names of those who have been granted the awards remain largely in the realm of speculation, as the authorities have not published the list. This latest correspondence to awardees still doesn’t specify who your partners are and doesn’t tell who operates the field, but the partners on each field are expected to jointly create a Special Purpose Vehicle to operate the asset.

...

https://www.energymixreport.com/nigerian-marginal-fields-bid-round-advances/

The exchange rate since last June has favoured the dollar ($), so Celadon, instead of receiving $47m, they will get over $50.8m at today's currency exchange rate of RMB 330m sale.

In June 2020, If Origo was to receive $4.2m (£3.03m) from the $47m (RMB 330M) sale in June 2020.
At today's rate they will be getting $4.54m (£3.28m) instead, from the sale $50.8m (RMB 330).
An increase of almost 10% from last year .

The fair value of Celadon on Origo accounts, last june was $1.129m, they will be receiving 4x that from the sale $4.54m (£3.28m).

They also have £1.9m cash from their last accounts, since last June, they have not done anything since, just waiting to sell both their holding in Celadon and Gobi Coal & Energy, which is out of their control.

They are liquidating their assets to return proceeds to shareholders.

Current share price at Close of Business Friday 06 2021 was 0.025p
Shares in issue: 358,746,814
Market Cap 0.9m

Shares Traded on Friday 185m, almost 52% of company traded on Friday alone.
40% not held in public hands

Assets
£1.9 cash
£3.28m from Celadon when sold
£0.2m fair value of Gobi Coal & Energy asset

Total Assets = 5.38m
MARKET CAP ONLY 0.9m, this is less than half of their cash equivalent £1.9m
and is 6 times less than their total assets.

Share price should be 0.53p at the very least equal to their cash equivalent of £1.9m
Current Price only 0.25p

https://origopartners.com/category/shareholder-communications/aim-rule-26/

FOLLOW UP

22 Jan 2021
"As noted in the Company's 12 June 2020 RNS, Celadon's controlling shareholder has represented that Celadon has entered into an agreement on the terms set forth in that RNS to sell that company's assets but that the closing is contingent on travel restrictions being lifted in certain Asian countries. Those restrictions have not yet been lifted thereby preventing the transaction from closing."

https://www.proactiveinvestors.com/LON:OPP/Origo-Partners/rns/922006

June 12 2020
"The Company has been informed by the controlling shareholder of Celadon Mining Ltd. (“Celadon”) that Celadon has entered into an agreement with a third party to sell Celadon’s assets for approximately RMB 330 million net to Celadon or approximately $47 million (“the net sale proceeds”)."

"The controlling shareholder then expects to return the net sale proceeds to Celadon’s shareholders through a share buyback. If this occurs the Company would receive approximately USD 4.2 million."

"The Company invested approximately USD 13.1 million in Celadon in 2011. In the Company’s last published accounts dated 30 June 2019, the Celadon investment was carried at a “fair value” of $1.129 million."

https://www.share-talk.com/origo-partners-plc-opp-l-investment-update-update-re-celadon-transaction/#gs.vezmrv

At cost value should be sitting at 0.53p as the lowest, based on £1.9m cash alone.

at this level can still 1 bag, as current price 0.275p

Opinion Hold / Buy

They must be desperate to catch sellers out.

and like you said jumped 17% in a blink.