Member Info for CaveatEmptor

One of the MMs bidding heavily, so must be filling big order - looks like a cashflow from the weak to line the coffers of the strong?

What will all the sellers say if good 201 news breaks before the AGM?

I am content to buy at these levels, but do feel a bit sorry for anybody that has been spooked into selling rather than taking a balanced view - the only reason for 'advising' people to sell at a big loss is so that cheap shares become available so the 'advisor' can make money on them.

Such is AIM...

Nowhere should read now more

Disappointing that the Subscription has not been done and dusted, but the £300,000 cash raise looks like the fundraising headroom they had left and would of lost at the next AGM.
£650,000 net after payment of break fees will keep things going until the OO after the AGM, then the existing shareholders will have the option of whether or not to invest in an end game.
Almost any scenario, short of delisting, will make the company worth many multiples of the current SP so is there nowhere upside than downside? I think so and will take advantage of this dip.

Seems to me that this particular spate is easy to settle.

If Uncanny and Teamhanz are correct we will awake tomorrow to a 7.00 RNS that says we have funds and that the Subscription debacle is dead and gone so that the future is now rosy. If they are wrong then tomorrow will pass just like today with posters sniping at each other with none having a hope of scoring a killing shot. No wonder I don't post here very often!

I hope for everybody's sake that we wake up to that RNS.

May the best posters win...

Sounds intriguing, Uncanny, can you share?

If that's the case Roses then I would be more than happy to suffer a bit of dilution with a discounted placing just to get rid of them once and for all. But would enough people be interested in investing at this point to get the cash required? On the other hand the SP can't get much lower and being rid of the whole Subscription debacle could only help with market sentiment.

Many thanks Roses, I had thought there would be a different investor for the new arrangement, but I can now see that you are right.

Are we still expecting the £500,000+ cash income before the end of July? If so then that should certainly help with the short term cashflow. VAL would then need a small fundraising to ensure funding until next news on the trials. Maybe the OO after the AGM will be enough?

Must say I will be very glad if all connections with the Subscription really can be severed as I was not a fan of the onerous terms attached to it.

I guess all we can do is wait for the next RNS when, hopefully, all will become clear.
ATB.

As announced by the Company on 31 May 2019 and 28 May 2019, the Company is in advanced discussions with European High Growth Opportunities SF (the "Investor") to terminate the entire Subscription Agreement that was announced on 26 April 2019 and enter into a new convertible bond facility (the "New Facility"). The terms of the New Facility are still subject to negotiation and agreement and no definitive documents have yet been entered into. The Company expects to notify shareholders of the details of the New Facility in due course, which, like the current deal, is expected to oblige the Company to issue convertible bonds and certain warrants to the Investor.The Company's working capital position is dependent on new funds being made available to it. The Company anticipates that the Investor will provide it with additional funds in the short term, under existing shareholder authorities, which will be used to drive its clinical and pre-clinical assets to completion.

So repayment of funds would not have to happen until after all trials have been completed - then further funding should not be a problem...

Hope you're right. If there is any news due then looking at recent RNSs it is likely to be subscription/finance related... it is too early for an update on the trials front, IMO, but that could follow in the near future...

Good to see that an open offer for participation by existing shareholders is planned for after the AGM and that the trials will then be fully funded to conclusion - so no more dilution after the OO! Bring it on.

Many thanks, Both.

When is the AGM? - I get "server error" whenever I try to access the RNS on LSE (and I've tried it on different devices).

Many thanks in advance.

What do you mean by "imminent "?

.01234 trade - someone likes numbers?

No problem, Trellis - we are all entitled to our own views.

Colin and Lawrence were due to fly out to China the day following the AGM, having said that they would not go unless there was some genuine interest expressed from the companies they were due to see.

Been very quiet since then, so either it was a waste of time or maybe they are considering an offer?

I would be surprised if we do't get an update before the end of June, one way or t'other...

20 TCF unrisked! What does that reduce to if fully risked - between 3 and 4 TCF, I would guess.

Didn't somebody say that 1 TCF = £1.00 on the SP in the event of an LE?

Is JP seriously saying he can get upwards of £3.00 per share for the Eastern Morocco portfolio?

I will believe it when I see it, maybe, not even then...

OK, just seen your post JDAU - I guess $300,000 will still go a long way - just makes the current CIB all the more important to know.

Hello JDAU,

So, if I understand you correctly then we have access to about $500,000 worth of unsold gold, on top of whatever CIB we already have?
That would pay for our current corporate expenses and Zambia commitments for the rest of the year!

Hopefully we will get an update on the CIB at the AGM so we have a clearer picture of how much we have to spend in the short term.

If the alluvial production has improved this quarter that can only add to the kitty - but as we always say, income from alluvials, whilst always very welcome, is very unpredictable so can not be relied upon.

Roll on the hard rock processing as that will be a lot more consistent from the earnings point of view and we will then know that we have finally achieved financial security.

Who knows, we may even get a bit of a long-overdue re-rate in the SP?

Agreed, JDAU,

I am well, thank you and i hope you are too.

That means that once commercial CIL production starts the share of net profit going to XTR will be $300,000-$400,000 per month. Certainly not to be sneezed at!

However, in the short term we have the gravity extraction to look forward to - by its nature larger lumps of gold and with relatively cheap production costs, how much this will be worth to XTR we should find out relatively soon as they can make a start on this virtually straight away. This combined with the ongoing alluvial income ( patchy) should at least make the company profitable and, who knows, maybe even very profitable in the shorter term - perhaps even enough for us to pay our way in Zambia without having to dig into shareholder pockets?.

It is this side of the plan, together with the commissioning of the blue sky exploration that will offer the short term newsflow and that is what I expect to be on track before the AGM.

So, all happening over the next six months:

Harvesting of the hard rock 'low hanging fruits'
Ongoing alluvial processing in much better weather conditions and increased processing capacity.
Blue Sky hard rock exploration.
Magnetic survey results from Zambia and targeting for detailed exploration.
Targeting of drill sites for Eureka ( drill ready) and possible production plan.

ATB.

"During the construction period, we plan to process, those mineral resources which are amenable to gravity processing and continue with the alluvial operations. A concession exploration programme will be initiated with a view to enlarging the currently known resource by drilling at depth and testing areas not yet investigated."

So looks like the short-term harvesting of the 'low hanging fruit' for the hard rock is still the plan together with alluvials this should return a handsome corporate profit until the CIL production starts next year, at which point profits and cash distributions should be considerable,

At the same time exploration will continue so that here is more hard rock to mine to keep production going after the initial estimate of 6 years mine life.

Admittedly a good plan, IMO, and the foundations now seem to be in place but CB et al need to convince us that the BOD has the expertise and drive to build XTR into a successful enterprise.

At the AGM we will see what progress has been made, if things are moving forward in the right direction then I will accept that that the plan has a chance of success, but if there are yet more delays then I think that some difficult decisions will have to be made, both by shareholders and the BOD.

I remember our visit to Tendrara,

The LE value being bandied about at that time (backed by the BOD) was £4-£6 per share.

Would I be happy with £1 per share? Of course not I invested my hard-earned cash based on a return of 5X that figure. Much of it has been tied up for more than 8 years now so it is not unreasonable to expect a satisfying return.

There are many PIs and also IIs invested in this company and all that any of us can do is wait to see what sort of deal the silver- tongued JP can cut for us.

The fact that JP is still young and has a lot of his career still ahead of him must work in our favour as I am sure he doesn't want a lot of disgruntled investors following him around for the next 20 years.

£1.50 - £2.00 per share would be be sufficient for JP to be able to crow about SOU for the rest of his career, but less than that may not play out so well...