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Did you get my email CS?
Totally agree HOLEEFOOK - every RNS bought more good news and all was heading up and up, until of course it suddenly went sour with no get out for anyone. That comment wasn't a jibe at you or MattTheBrave by the way. It was just a general observation as some people are stating that it was all obviously going to come to this but if that was the case no one would have put a penny in.
Fair points MattTheBrave and HOLEEFOOK. I'm being over-optimistic I'm sure and of course nothing is certain at all. PRG may not have raised a cent in finance. But of course whilst they continue as a company then all hope is not lost. I find that the ones with the least amount of shares in PRG are the ones keenest to throw the towel in and spread negativity. Let's hope all comes good for all our sakes as no one can really afford to lose out.
All as not as clear as would appear in that response. "PARAGON was given a chance but they failed to show up" - simplifies what is really going on. I suspect the sticking point is paying $12 million in to the government consolidated fund. If PRG truly have the funds to take the two mines in to operation then I'm guessing that this is all they have, i.e. no spare $12 million to poor into a sink hole. If the Lesotho government truly want to get the mines up and running and it's people employed then surely this 'payment' could be offset against future diamond sales. Funds are scarce but I'm sure PRG could raise funds to buy the equipment needed to start mining and to bankroll the work force. That's not going to come to $29 million and won't include a $12 million down payment "Therefore, this matter has been openly published on the 'LOCAL' newspapers". Who sells a diamond mine in the local rag? The guy responding is the Information Officer from the Ministry of Mining. He's not necessarily privy to what exactly is going on. He knows about as much as we do: Found this at another site. It talks of where the proceeds from diamonds sales go - "Asked how the revenue collected from the mining industry is used, the information officer at the Ministry of Mining, Rorisang Mahlo, said the revenue goes to the government’s consolidated fund." Mmmmmm that's a nice name for it. I'm still thinking it's cat and mouse. If that $12 million 'fund' asking price is offset against future diamond sales I'd like to think the process could begin. All speculation of course but I believe hope is not lost. It's just playing the game and letting it come to a natural end. It could be a coin toss as to how it will end but if I were PRG I'd be offering to pay the $12 million at a later date based on proceeds of the mining operations.
This makes for an interesting read. It offers nothing new to us and is no more than another person's opinion but worth a read. http://www.pressreader.com/lesotho/lesotho-times/20160121/282162175225037/TextView
Sadly, the news came directly from PRG, so it's confirmed as not being a true statement.
Sadly guys the news is incorrect. PRG are still working towards finalising funding and acquiring Mothae. Mothae is still available.
PM has taken the company back into private ownership. It is now not a listed company and we are all private investors. I think he's done it as it gives him much more freedom without the pressure of the open market controlling the value of the company which of course had a terrible effect on funding. Had the market responded to good news as it should have done and the share price had gone to 10p plus, then funding would have been easy. The market wasn't helping PRG at all. It's a distraction that is not needed or welcome. We are now all locked-in as private investors (although we are of course free to sell our share to individual private investors and of course that could include selling back to PRG). This company is far from dead in the water as many think. It's just a change in strategy.
Not the news we all wanted but the right decision I think. What's the point in being back on AIM if the finance isn't in place? They can't come out of suspension without the deal being concluded as the sp would be decimated, so in the end it was the right decision for the shareholder and don't forget PM is the biggest single shareholder. He's protecting his own interest which by default protects us all. With a 21% stake, this isn't just another AIM failure. If we were really close to going under then actions would have been taken that would have saved the company but halved the sp in the process. We're obviously far from that position otherwise that action would have been taken. It's because we aren't privy to insider knowledge that we panic.
Very interesting logic there BigBiteNow. I like reading your comments as they are very well written and very well reasoned. I concur with your thoughts as being the most likely state of events.
Anyone on here have a full account on LinkedIn? I don't fancy spending £240 per year to contact PM directly. Of course even contacting directly we are not assured a true response but it's worth a try. He's a 3rd link to me but who knows who I need to ask get a direct link? https://www.linkedin.com/profile/view?id=AAkAAAbhybUBnGbJKXOKVTZ32-hKQd0wGZQYsDA&authType=NAME_SEARCH&authToken=RHJX&locale=en_US&trk=tyah&trkInfo=clickedVertical%3Amynetwork%2CclickedEntityId%3A115460533%2CauthType%3ANAME_SEARCH%2Cidx%3A1-1-1%2CtarId%3A1449953697948%2Ctas%3Aphilip%20falzon%20manduca It makes an interesting read as PM states that he is keen not to dilute shares, which we all knew and he's all for the shareholder. For some reason it has the dates wrong for his chairmanship of PRG and hence at the top it quotes this as a previous position. Don't read too much in to that or we'll all be topping ourselves! Someone has already commented that $15 million is not a lot to raise but of course it is if you don't share the rewards. PM will need to give up more than he wants to get the deal done. I still believe that deal will be done - it's a time issue.
I agree with your findings BigBiteNow. As I say, my mind is wandering these days. I have so much money tied up here, and consequently my future quality of life, it clouds my logical reasoning at times. You are correct - speculation is pointless and facts are everything. I still believe in PRG and PM and have faith that all will be resolved in due course.
In the hours that I wake up screaming, hoping that it's all been a bad dream I ponder even more on the recent events and the problems ahead. Getting the nomad, on the face of it seems simple but I suspect that the nomad resigned due to a disagreement over PRG suspending shares, which (and of course I am surmising) was probably more to do with protecting a falling share price than to do with lack of operating capital. A falling share price spelt curtains for any finance deal. Once the share was suspended, the nomad would have demanded to see the financial status of the company as they have an obligation to do so. So, nomad - "please can I see your bank account, together with a list of outgoings", PRG - "yes, course you can - here you go" or "no, you can't". If the answer was "yes, course you can" and the figures didn't stack up then the nomad would have to report it to AIm. If the answer was "no, you can't" (because PRG aren't in financial peril) then the nomad would have no choice but to resign as they can no longer uphold that PRG are fit to remain in AIM. That's only me surmising of course but the timeline would fit and the events fit. Then of course a new nomad would ask the same questions. Show me that you are fit to be in Aim and evidence that with profit and loss accounts and your bank account statements please. That will be tricky if cash has moved out of the account in the interim. That would be even more tricky than if there was a genuine cash flow problem. So, if that is the case, then a new nomad would have to be post finance deal, which means an even tighter deadline for doing the deal. Doing a deal with a low share price is so difficult as why lend money when you can buy the company for a song? Or at least you could if the shares were in circulation. So any deal done will need to give up a share of the company; meaning dilution, which right now I'm happy with. I'd rather have half of something than all of nothing. All pointless supposition on my part but it fills the cold dark hours of sleeplessness.
I agree and that's why I invested so heavily. I believe they have the capital and connections to see this through. It's a timing issue at the moment.
Agreed - I see the next deadline as 24 December but believe a nomad will be in place before then.
I haven't seen Hargreaves' sector report that was posted by jscsc but I'm very surprised that a professional institution would write such unprofessional and immature words: "At the time of writing shares in Paragon Diamonds are suspended pending clarification of its financial position. It is trying to buy a mine from Lucara which has been sitting idle for some time. We were very unimpressed with one of the company’s top people after a meeting and our gut feeling was to stay well clear of the stock, which in hindsight has proved a good call." It says more about Hargreaves than it does about PRG in my opinion, using such words as 'hindsight' and 'gut feeling' - I thought they were supposed to be analytical and not acting on 'gut feelings'. Is that how they make their recommendations? And of course the personal jibe at PRG's 'top manager'; quite childish IMO. It proves my theory that there are no experts when it comes to share dealing; if there were then they'd all be mega rich and certainly wouldn't share their views with anyone else. It's all about market manipulation. We'll come out of this present state of affairs just fine in my opinion. Sure there'll be the inevitable drop in share price when we come out of suspension and the finance is done. It'll be great news but there'll still be a lot bailing out as confidence has been dented. Personally, I'm gonna stay on the ride.
My thoughts exactly Sam1337. PRG aren't going to let the short-term lender push them into coming out of suspension without finance in place. It would truly be a Black Friday for us all if that were to happen. In an odd way, provided the finance is sorted, even if that takes months, then the share price is protected (although in suspension any share price is only notional anyway), which protects PRG, Titanium and us all. That is provided the finance deal can be done. Coming out of suspension with the finance deal done is the only way. The Nomad needn't be an issue as PRG are no worse off than in the years before PM so there should be a Nomad in place soon. They've been in AIM a long time and haven't made a penny in profit. So, nothing's changed. My guess is that the Nomad's new valuation wasn't to PMs liking and there was a parting of ways. I can't really understand the short-term lender's insistence that PRG come out of suspension in the short term, unless of course they are tired of waiting and have inside knowledge that PM is procrastinating for the Utopian deal that will never transpire. We don't know how many deals have broken down because he wants to give little away. It's maybe a rocket up the whatsit.
.......................no, because if PM was an unscrupulous chap then he would have allowed the share price to fall through the floor, mopped up the shares and then sorted the finance out. By suspending the shares he's temporarily protected the share price until he can bring good news to the market. That's when the suspension will be lifted and not before, otherwise the likelihood would have been a collapse in share price and a hostile takeover, probably from a cash rich miner! I don't think PM would play second-fiddle to anyone and with a 21% stake they wouldn't want someone else in charge of the company's destiny.
I think we have all forgotten where PRG was before PM came along. It was pretty much aimless (no pun intended), carrying out exploration works with seemingly no eye on ever mining the diamonds that it was looking for. At that time the share price moved around the 4p mark (where we are now) - and that was for a company with no idea of how to make money. It was still on AIM and hadn't made a penny; reporting continued annual losses. Now, we have a Chairman with vision, a little more debt but certainly no more worse off than before PM came along; certainly no timetable for production and a second mine to purchase. PRG were in AIM before when short term funding was running out, and so there's no reason why they won't stay in AIM. Given the funding then diamonds will be coming out of the ground. I'm sure PM anticipated a rise in the share price - certainly to 9p and above on the news that PRG was full steam ahead to buy Mothae and to get on with mining. That would have given a great position to do the financing, even if it did mean watering down the share share issue a little. The markets' disinterest in the positive news and the 30% downturn in diamond prices has hit the finance deal hard. In my opinion a financial backer isn't going to want to take risk without a share of the company (I wouldn't would you?) and that is likely to be the sticking point - with a 21% stake, Titanium is not going to want to water it's stake (and our stake) down too much but with a share price at 3.9p it is backed into a corner. PM must be pulling on all he knowledge and experience to come up with a solution to this problem. Lifting the suspension opens the share price up to more losses because of the doom and gloom talk. He needs to have some finance package in place before lifting the suspension - even if that is more short-term funding. I think it will come in the form of Titanium backing itself financially, which will send the right message to the market. Call me an optimist (which I am) but I think we will come out of this just fine. Hopefully PM will keep his engagement next week: http://london.minesandmoney.com/day/conference-day-3/ Can anyone on here get access to this event? The media will report on it of course but it would be good if someone is there to give some feedback on here. No one would be surprised if he shies away from the event but it won't send a good message to the market if he does. He needs to be bullish and to talk positively of the future and at least have mention of deals in the offing.
Well said and well reasoned BigBiteNow. I invested so much and put my faith in PRG because of the stake that Titanium have, so they will do everything possible to make this work. Your question Jeffa would all depend on whether the Directors of Titanium and PRG enjoy prison food as it is the legal responsibility of all Directors to protect the interests of the company and shareholders.