Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
So your release is clear that Art and the CFO get shares. It doesn't say who the investors are. I don't know your rules in the UK - but could Art put his own money in to pay out his own debt without disclosing he is one of his own lenders? Sounds circular, but it could be possible.
I haven't looked at your board for a bit as I am at work. The release I saw is clear that two of the debts getting settled are Art and the new CFO. The release didn't disclose the two institutional investors. Release says - funds to be used to settle debts not eligible for Debt Exchange and to pay for ongoing admin costs. Like everyone, I am frustrated the company won't explain why they did it at this level and before the announcement of a completed deal with Essar - which would have allowed the shares to go at a less dilutive price to the company.
If this isn't the form of release you are seeing - they revised it.
You could argue it two ways - it is frustrating to see him issue more shares before news that stifles momentum. But you wouldn't be taking shares to settle debt unless you figured they would eventually come good to make you whole.
GLTA
Pared does for us dummies. The technical analysis says we have oil
I agree, release next week. And it should say terms with Essar are done and terms of extension granted by Nigeria. Not sure what that does to share price
Maybe I am clueless on this but we can project a market cap based on the field potential but our share price will be dictated by how many more shares art issues before the field is proven. So how can we predict a price? Art just did two raisings, which makes my point. What stops him from diluting us further ? He is raising on your exchange where the regulatory limits are looser. God knows how many shares he intends to issue in the next 6 months. If he tells us on the next release he won’t dilute us further until the drill then we pop. Otherwise I think we are facing a wild uncertainty and we don’t get a true rerate until the field is proven
Jiving it is a good point that licensing opened up, but we just cleaned up creditors at an awful dilutive rate. We are not flush with cash. So why go blow more cash if we have none? Maybe focus on getting the cash flow going so we can negotiate better terms with creditors on future deals like Mozambique. Let kola make the deals and farm out our expertise until we have cash flow.
I wonder how much more dilution Art will do to us before we see a drill bit in the ground ?
We shouldn’t be buying more licenses until we actually prove this asset out and Get Mozambique online.
I think Caw caw said this before on the board. We don't seem to have a lot of correlation between our board and yours. We trade in half penny increments. You are able to trade on finer increments than us. It seems crazy we can't bridge that gap and find trades at a quarter or tenth of a penny. But it is what it is. So if someone wants a bigger position, you have to jump to a penny to get filled, or get in line with the bid at a half penny and hope you get filled before news and you risk chasing the stock.
I am also crossing my fingers along with the many long term holders that post on this board that we might finally see something happening here. And I am hoping we made enough progress the last few years on this OPL play that it can get cracking in short order!
Oilberta, you make any sense of this extra financing before July 9? It doesn't make sense we wouldn't hold off to raise again unless it was a dire need, until we can say by July 9 the license extension was approved for Essar Nigeria and the terms. It seems that would move our stock price and make any new financing less dillutive to us. So why not wait? Anybody with experience with these oil plays - is there a reason we would raise a week before we expect to release positive news?
Nation you need to factor in that we are only 5 per cent of the result until we buy up to 15 per cent. So if 4 wells get us to 24000 to 30000 we may have as much as 4500 boe as our share at the successful completion of a four well program. Just saying ... we may need to wait for some rerate when resources proven
So we have to hope that with essar in charge now they follow the same path that shore can intended . That is a big price difference
Quant - we are told here that we have to pay some awful currency exchange rates to trade on your board and that practically eats up the value of trying to buy on your exchange. Unless you are dumping huge money in - and I am just averaging down.
It doesn't make sense that Nigeria would not give an extension and risk a lawsuit with Essar that ties this field up longer. Nigeria wants a drill so any royalties start flowing to the government. So it seems that business sense will push Nigeria, Essar and ShoreCan to get this extension of the license done and then for Essar to get the appraisal drill completed. The terms of this new deal, while not as great to us as before - show parties making deals that focus on getting the field to production. The closer we get to production, the higher our price will go. So I am hoping that the next release will give us some details of terms of a license extension. From what the last release said, about the deal, I understand that ShoreCan and Essar are currently negotiating terms of the extension with Nigeria right now - with the intent to announce the status of that by July 9.
Let me put it this way - without the license extension - Essar can't contract the drill ship because it takes 90 to 120 days or so if it all goes smooth - to get the ship contracted, inspected, on site, and drilling - our current license runs out before we could get it all done. So I think the extension will be coming fast - which is why they announced 35 days to put this together. The license extension gives Essar the comfort it needs to spend the money to get the drill ship on site. We price adjust as we get closer to that drill date.
Caw Caw - where can you get stock at 3/4 of a penny in Canada? Brokers here only trade in half cent increments, to my knowledge. If you have someone that trades more thinly, here, I would like to know as I would buy more. I am one of the buyers at a penny. I would have loved to get stock at a half penny, but the bid was too stacked up and I didn't want to chase the stock. But if there is a brokerage that would sell at 1/4 penny increments, I would be buying more.
There is going to be a news release by July 9. That is the deadline under the 35 days stipulated for Essar Nigeria to announce the new deal with Essar Mauritius and ShoreCan. What should be in there is something about the status of the application for a license extension (never not been granted before is what I have been told).
What is not known is the terms of the extension the Government will demand. That may mean commitment to more than one well, and they may impose a deadline to get it done.
So right now - it is a game of chicken with the stock price because that pending release is going to clarify the terms of the deal with Essar Mauritius, and it may clarify when the extension will be granted, and terms, so we may have a drill date demanded. And any certainty that comes, has to help our share price.
GLTA
Well the announcement today was supposed to be a financial update. We got a placing. Art had been holding creditors at bay, offering shares. At least he didn't do it at .007 pence - he did it at a multiple higher, but it looks like he is getting money together to clean up creditors. He has to get us clean so we can say no potential other pending litigation - for part of the application for a license extension.
The release basically admits it is coming from 3 people. It Looks a lot like taking care of a couple people before the news flow comes out July 9 or so. Expect an announcement around then of the terms of the Nigerian approval of a license extension. Hopefully with an imminent drill deadline, so the momentum continues on both exchanges. I don't know enough about this industry to assess risks and values, but it occurs to me that if the first appraisal well confirms oil, we go to a different valuation for proven reserves. GLTA
In Canada, someone cleaned out the ask at what is a half penny Canadian - that cost $2500 Canadian. It left us with the ask at a penny and the bid at a half penny. Too big a spread and so far, nobody has blinked over here to fill an order. I think our market is waiting for your price to get to about .6 pence. Then we will adjust with you. Your market will lead ours.
I think we may seem some financials tomorrow - an earlier release said that our financials would come out tomorrow - so probably posted during your trading day in the UK and at open of our market tomorrow. And then we have until July 9 for the parties to document the settlement announced June 4. What is not clear to me is if that is supposed to include a license extension to Essar Nigeria by the government. So we should have a number of news points in the next few weeks. As they come out that will hopefully help our share price.
GLTA
Our stake would be 150 million over the course of the number of years to take it out.
Sorry, mistake below In what I think we have to pay. We have to pay 10 per cent of the proven 62 milllion to get the extra 10 per cent interest so the way I understand it the first 6 million pounds We earn on the four wells go to buying up our position to 15 per cent. So all we have to do is keep our lights on until then.
No easy, i am also wondering what the state of agreement is with the government to get a license extension. From what little I know they can’t make it all happen by October with such a recent change in ownership unless essar can assume all they Shorecan already arranged.
The government did want an initial 4 well program so that must still be in place. And I read somewhere , I think the release on the settlement, we are carried on the first well so I take that to mean essar covers the performance bond and all expenses through that first well. We pay half of the 62 million pounds proven expenditures by essar to get back another 10 per cent to us. So we get a carried first drill and can use that to finance a buyout of another 10 per cent . We get a bigger interest without having to pay out. But it means a longer term to see the share price adjust to the 15 per cent participation by us because we have to pay in 6 million pounds from our 5 per cent share as we get started. Which of course depends on the wells proving out. Lots of stuff has to happen, starting with government approval of an extension. I think we will not rise as fast as we can until that is announced as being sorted. And our price will do they biggest adjustment once the first well results are announced and prove we have a ton of oil.
Glta
Hey Guitar, I am also encouraged to see activity in Canada, but a half penny Canadian is the equivalent of about 0.26 pence, so anybody buying in Canada is paying a premium. There are still over 11 million on the ask. But this stock price is finally moving in the right direction, so I hope we all do well in the next several months.
GLTA