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20% of Newco May well be worth more than 100% of going it alone Highside….I detect EUZ shareholders have Hobsons choice at the moment….otherwise this clause in todays RNS looms…..” In the event that Shareholders do not approve the Resolution or Denarius withdraws from the Option Agreement without substantially completing the conditions to the exercise of the First Option or Second Option, the Company would seek to either identify and secure an alternative partner(s) to fund the Toral Project or raise sufficient funds to progress the project. Progressing the Toral Project will include further exploration work and completion of a pre-feasibility study.”
Sheds I got that….but how does it benefit EUZ shareholders by owning 20% of the JV Newco and how do EUZ access the 4million that is paid to EMI ?
Newco will have to develop the mine and ultimately mine it and they will have operational costs and I think the pay back period is in year 5…..so EUZ if they haven’t sold their 20% by then will benefit from year 6 onwards….my guess is the 20% sale of JV company will actually be worth something to EUZ shareholders not the 80% sale of Toral.
Grappa and rereading the presentation on EUZ website….. US$4m by way of a loan (the “Loan”) to EMI (the “First Option Expenditure”……..EMI is part of the JV…..NOT EUZ……
So where will EUZ get funding from to buy another project ??? The more I read into this JV the more it frigging stinks !!!
Hi Highside….that’s exactly the point. One cannot put a value on EUZ at the moment. And yes phase 3 looming on the both failed phase 1 Moonlight and phase 2 Toral.
My guess is EUZ shareholders will not see a penny of the 4 million quid. And phase 3 will be bought with the proceeds…..and share holders are back to where they were about 7 years ago.
Nice post Sheds….and yes it looks like the condition of getting Antonina has been dropped…It does need further clarification imo….FWIW the last financials EUZ posted accumulated losses to the tune of (48,843,673)….I wonder if any of this will be set off in the JV as well.
I think the point Grappa was trying to make is it certainly is a bit of a lop sided JV the way we read it.
(48,843,673)
Lols Sheds if it’s any consolation they have been both been performing as bad as each other the past 5 years… Denarius is (-92.39%) past 5 years and EUZ (-90.26%) past 5 years……so it looks like the two were made for each other :-) ….any gains will be most welcome :-)
I see the JSE is still operating today with KIBO…..huge volumes….what on earth is going on….
https://www.moneyweb.co.za/tools-and-data/click-a-company/KBO/
https://youtu.be/NKhCA2a9hN8
A subsidiary……of Denarius in Spain.
Sheds I c EUZ had advisors for the JV ….. https://legaldealmaker.com/ince-mariscal-wildeboer-act-on-denarius-europa-metals-jv-agreement/
Yes.I notice that and this is what one of them says on the very first page of the Latest EUZ presentation….. “we will lead the development of this high-grade polymetallic project” Denarius Chairman and CEO, Serafino Iacono.
I’m also pleased they have the money Sheds….but honestly I still believe we as EUZ shareholders drew the short straw in this so called JV.
Sorry Sheds…Dont know where I got that from….It is actually 34%….The other major shareholder is King Street Capital Management which is a global investment management company founded in 1995 by Brian J. Higgins and Francis Biondi Jr. King Street Capital Management managed approximately $17.9 billion of assets as of June 2019. They own 20%…..so 2 major shareholders of Denerius have a total of about 54%.
Source: https://www.marketscreener.com/quote/stock/DENARIUS-METALS-CORP-111483007/company/
@Money Denerius is 61% owned by Aris mining…..they are already large as per Myles….furthermore in the presentation why do they even mention If EUZs ownership of Toral drops to less than 10% they will have no one on the board? Seems very strange that this is even mentioned.