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Discovering helium concentrations twenty times higher than the background levels could be considered substantial and commercially promising. However, the economic viability would still need to be assessed by considering the absolute concentration, extraction costs, and market demand.
I think they'll sell the asset or J/V can't see them going alone.
People are mistaking the helium encountered during the drilling to the actual absolute concentration testing, 7 - 10days for results on that.
The bottom line is the company needed the money, there more dilution coming from the prospectus and wasn't there also a vote for a special resolution increase too.
Everyone has been kept in the dark long enough regarding the financial situation and production.
If production had halted they should have informed the market via RNS.
Looking forward to seeing where we are.
The CSS Alpha Global Pte Ltd $250,000 fundraising is termed as a legal mortgage with the license, buildings, land etc coming under the real property security.
The above meets the criteria, where as OCIM offer was not in the same legal framework and would not.
In Kenya, it's possible to use a mining license as security for financing or other purposes. However, the acceptance of mining licenses as security may vary depending on the lender or institution involved.
In Tanzania, mining licenses can be used as security for various purposes, including financing. However, similar to Kenya, the acceptance of mining licenses as security may depend on the policies of the involved parties or institutions.
Https://find-and-update.company-information.service.gov.uk/company/09829720/filing-history
Probably best to read the latest file regarding the $250,000 fundraising, they've have mortgaged everything, mine, mining license etc it's all contained in a relatively low fundraise with CSS Alpha Global Pte Ltd.
Theoretically it would be a straight forward process to take the mine private on default.
Can't see it happening as the loan is small in scale.
Zan, there's been no signed legally binding contract for the larger funding, so it's not a given it will come.
What we currently know is since November they've raised just under $2m, the prospectus is likely to contain another $2m most likely to come shortly after relist.
What we don't know is the financial position and production, for the last 7 months.
If they can use the money raised above to assist with the expansion and show an increase in production, they would mitigate some of the risk for larger funding.
It's common to pay a slight premium when receiving warrants (I have loads)
Let's try and piece together what's happening,
November, $1,400,000 Financing Agreement with Koenig Vermoegensverwal MBH.
Terms of the above, monthly repayments calculated as the higher of US $50,000 and 50% of free cash flow of the Company.
The two very recent fundraises, combined amount circa $428,000 with 3 months repayment grace on $250,000 and no repayment on the rest.
Fundraising is recorded on the cash flow statement but it is not recorded as free cash flow.
So the company can compensate for the repayments to the November fundraising.
I think that's twice RM has dipped into the prospectus pot, once the company is relisted it should come not long after IMO