At the risk of over-analysing "a very sombre mood for explorers needing finance" possibly means they do not have a JV lined up for when we get Anza back. Where are the funds going to come from for a drill program?
J - par for the course in junior mining, they have no revenue so they need to tap the market. Normally for direct drilling expenses (and to pay for salaries), which is why this very lengthly limbo at Anza has been absolutely brutal as all costs are simply salaries with no value being discovered.
I didn't think so bhargav, moreso explaining the process to our new friend as to why placement purchasers don't buy a placement just to dump the position immediately.
Also, many placements come with blackout windows, meaning the purchaser is not able to sell for 1-6 months. I have seen this type of thing for very large placements, I have no idea if it is common for tiddler companies on AIM.
J - the placing was at 2.95 and the price dropped to this on the news, so there is only a very small window, if at all, for placement buyer to take advantage. So no, it is not usual for placement holders to simply sell immediately, remember the placement shares come with warrants, so most purchasers would expect/desire price to rise so they can exercise those warrants in the future.
Johnstone, there is no way to find out but you can see the "largest holders" on the OMI website. The largest holders are us PI mugs through our retail brokers, HL etc. With regards the placing, you are mostly correct, however, the broker does not buy the shares then sell them for a profit, they get a fee on top of the placing. New shares are created and sold to interested private entities with OMI banking the proceeds.
Doesn't take much for this to have 10%+ days. Especially with gold breaking out and I would assume a lot of M&A activity in the market. Free float is typically low, there are a lot of 7 figure+ holders here and I guess not selling at 2-3p.
We should be drilling up high grade right now and rallying with gold. Instead we are raising capital at the lows with no value realisation in sight. No news or even a pic from PDAC. Sad.
This talk of buying MMA for X $ millions makes me very nervous. I have no confidence in our Board to resolve this in favour of OMI shareholders. I think OMI are going to vastly overpay, with MMA trying to recoup every penny they spent on Phase 1, which is NOT part of the Agreement. The Agreement is clear, if MMA do not progress to P2 they OWN NOTHING and they walk away with nothing. At best, I think OMI should pay $2m and MMA should just leave, not this bizarre "buying MMA" approach. I have written yet another formal complaint which is necessary prior to raising an FCA complaint, but I expect I will be ignored.
OMI have backed themselves into a corner by failing to address the lack of progression to P2 in a timely manner, which would have been from Sep22-Jan23, the C&M nonsense should have been the trigger for OMI to get aggressive for resolution. I told them this at the time and was told "it is legally complex and we do not wish to have a legal dispute with our largest shareholder (Newmont)".
Very poor management, the worst I have ever encountered, and I believe breach of fiduciary duty to be talking about buying MMA for $ millions.
I have spent many years consulting to C-suite execs and have seen all styles of management, but this is the absolute worst I have ever seen.
Going back to last months RNS they claim that MMA "have earned 51% of Anza" but this is WRONG as I have stated repeatedly, MMA only had an option and if they do not want to progress to P2 then they leave with nothing. I am afraid these clowns are going to sign away millions in future value, or worse, a free percentage ownership, in buying out a shell company (MMA) that is worth nothing. I am furious, but no longer shocked, that shareholders cannot do anything about this and if I had any energy left to waste on this steaming pile of turd I would submit, yet another, complaint to the FCA.
As it is, I am resigned that the clowns will vastly overpay for MMA, a transaction which is certainly not the "quickest and easiest way to resolve the matter" as Brad put it in the last interview.
Smart guys imo
Webb's, thank you for sharing that, I do not have time to go digging through NewMont reports for commentary but this report confirming focus on 10 core assets only alleviates my fears as to why MMA are exiting the JV with OMI, if is as Brad described, a business prioritisation rather than anything found lacking at Anza.
I am terrified at the thought of Brad and Louis trying to manage multiple JVs at once. Absolutely terrified.
Newmont own 15% of OMI which was arranged as part of the JV, what are they going to do with that now? Hopefully OMI include it in the "buying MMA" deal, but quite frankly I have absolutely zero confidence that these clowns will have even though about it let alone factor it into negotiations.
Karl, the opposite view is that they are holding themselves out as doormats. Any new JV partners will be licking their lips knowing that OMI will never seek to enforce any contract term.
At what price to remain on good terms? Shareholders have paid the price with loss of 90% or more.
Now, it seems we are on the verge of agreeing to future payment of millions for an entity that owns nothing apart from a few applications in the area.
Chicken, I agree with your comments regarding the huge delay. I have said it many times before, MMA needed to start P2 within 90 days of P1 ending. After this 90 days MMA lose their option.
OMI never issued an RNS to state any reason for a force majeure of this contract term, after around 8 months delay Brad verbally blamed it on "new laws that meant the JV company couldnt be formed in a tax advantagous manner". Utter BS imo.
This should NEVER have been allowed to drag on and it is clear evidence of dereliction of duty. I DGAF if MMA take a long time to make decisions, this harms OMI and the obligation was on Brad to collar the most senior decision-maker at MMA and tell them we are taking the 100% and walking if they do not start P2 within X days or come up with an acceptable exit plan.
Brad and Louis are either terrified of standing up for shareholders rights, or something worse.
With all due respect Chicken you shouldn't be interpreting contracts if you are not qualified to do so. "feeling they have done enough" is irrelevant, the facts are that MMA own nothing until they formally start P2 which comes with obligation to spend another $20m drilling Anza.
Shareholders have been shafted here and my finger is on the sell button today. The only thing stopping me is my anger, investment decisions should not be made when experiencing strong emotions.
CHicken, yes, and I was basically ignored. "we have various legal opinions on this and it is complex" was the paraphrased response. I also reported it to the FCA but they do not provide any updates or any information about action they may or may not take. AIM is for all intents and purposes unregulated.
I don't like it one bit but I am trapped and not selling at sub 3p. Buying MMA is the quickest resolution? Sorry but that is utter bs. All it takes is one letter to end the Exploration Agreement "MMA have choosen to not progress to P2".
It seems OMI have incorrectly accepted that MMA now own 51% of Anza, if not then what exactly are they buying and at what price? A few applications in the region? So what. No, this will cost us further millions as MMA pretend they own 51% of Anza and OMI accept it. In short, OMI shareholders are shafted from every direction.
The more I think about it, the more it becomes clear that the whole thrust of the Exploration Agreement was a $50m investment towards PEA. However, it was broken into Phases so that MMA did not have the full liability from the very start, which makes sense before any drilling took place. Thus the Agreement gives them the right to walk away after P1, which it appears there is evidence, as per bhargav, that Ignacio confirmed this in previous annual meetings. Quite how MMA have now been able to convince our new BoD that completion of P1 grants them 51% equity is beyond me, I have advised Brad otherwise and been ignored. It is either incompetence or corruption.