Member Info for CF73

The $4million does not need to be recalculated as CAPEX. KME and equipment and expertise is being bought by Newco, paid for through the issuance of $4million of shares, a total amount of shares that is intended to constitute 20% of the share capital, indicatively valuing Newco at $20million.

Once it is bought, it is bought. Paying for them at the point of IPO through the issue of shares is actually the easiest way to do this.

And yes, there are OPEX costs but not to be confused with the purchase of KME and equipment. As said, once we have bought this equipment through the proposed process, it stays bought, with those costs already absorbed during the formation of Newco and IPO.

...tomorrow...we find out more...

It's Shirley out the bag...

...Exxon is it, Shirley?!

Elmwood, I hear you about the historic issues and the skepticism that comes with it, but this hammering down on the company is not helpful. We even got traders hijacking this 'theme' of past history to benefit their trading interests/positions.

I can tell you, and is clear by looking at the BB here, it ain't awash with positivity over the proposed, let alone any attempt at balance.

chippy. I'm going on the most numbers we have to use as a benchmark. For Zulu, KDNC could invest up to $5.1million (in stages) to take us to DFS, and in doing so (if they took the full deal) were going to secure 30% of the project.

That was a deal that many were actually wanting to go ahead.

The KME option is far better terms. There, for $4million, we own the equipment (plus staffing costs and milestones bonus), 20% of Newco, and we get all of PREM, Zulu and Katete drilled, and then have the equipment permanently to lease out whenever the opportunity arises.

Newco would place us in a much stronger position than we are in now and than the Zulu deal with KDNC would've put us in. Yes, we need more detail but will come.

chippy, I know $4million is for the equipment and that wages are a separate issues. Standard. Hiring that equipment would've cost an arm and a leg.

Just to drill Zulu to DFS, looking at the KDNC deal, would've cost $5.1million and potentially lost us 30% of the asset in the subsequent JV.

Let's bear that in mind when thinking about $4million (for the equipment and bringing the expertise in house) and 20% of Newco, to drill the PREM, Zulu and Katete.

Philip1976, I agree that it caught us out. Initially, I was concerned. But as the wore on and I absorbed what was going the news, it was clear to me that it was a) better than where we currently are, and substantially so, and b) that it was genuine proposal for moving ahead with the projects in our portfolio.

Take a look at it again: for $4million we are able to undertake all of that drill work on all of our projects (happy to add the $3million bonus for milestones met). The deal also means we have the equipment and expertise in house that can then be hired out, this in a country where mining is a major industry.

Those with a medium to long term view should be behind this. I can only assume those knocking it are not in or are trading it.

Well said IQ

Constant dredging up of the past, as if we didn't see it happen, as if we weren't there. And then come continuous picking holes at everything.

Infantile.

Snowking, the proposed deal is actually a really good proposition. But there's a concerted effort amongst to cloud judgement, including traders like Malky, here to benefit at LTHs expense.

I'm referring to the unanswered questions emerging out of the RNS, to which you pointed and to which I subsequently pointed, not your losses.

And to clarify, I'm also down thousands here. But am focusing on what can be done going forward, not finding fault in ever damn thing before questions have been asked. Once questions have been put at the Webinar, folks then judge based upon the answers they receive. Judging them on the basis of questions as yet unanswered for the plain reason that the questions haven't been asked yet, is plain ludicrousity.

In my view.

Zaza wanted a deal "...sooner better than later." December is time to wind down and so feel November is the month for the announcement of the Super Major

Good luck all!

Wolf, there seem to be a trillion unanswered questions, as if a standard length RNS could have foreseen, let alone address, or even have the space for, answers to the raft of questions to which you're alluding.

By the nature of our course of business, we naturally arrive at those questions following the RNS. The purpose of the RNS isn't to answer every possible question that could possibly arise on release of the RNS.

It's unrealistic and ludicrous even that you use this as a stick to beat PREM/GR with, especially given the Webinar's tomorrow

So Wolf, be sure to ask those as yet unanswered questions tomorrow. I want no stone left unturned me ol mucker.

That $50million fund could be very helpful ;-))

Thanks Ledsparky, very helpful. Looks extremely good!

Zimbabwean government couldn't possibly do the full $6million. But not beyond the realms of imagination that they might cough up $2million or connect us with those who have the money (like the Chinese or some other Sovereign Wealth Fund - certainly these minerals are increasingly in demand). Not to mention the offtakers.

The picture will emerge in due course. Good luck all!

Futureisbright, a real possibility that the government will be injecting some of the capital. Been posting but folks don't seem to catch on, especially after the ZBC article mentioning the visit to RHA and the Minister of Mines comments.

Now imagine RHA ownership RNS tomorrow morning, and an outline of a package of government support (e.g. soft loans etc.)

Newco represents a genuine plan and opportunity to progress projects and to develop the company itself. The synergy of PREM assets with KME will be telling one.

Couldn't give a S H I T for anything you say Malky. You are, in the classical sense, a rectal wipe.

...looks as if about to move...

Utter Joker Malky, he as a trader hijacking the narrative of 'pi-sstake stress' associated with PREM/GR for his own trader benefit. Doing the righteous one on the back of admitting the following;

"Still, I`m still in on a trade hoping you and your ramping buds push it upwards a little"

W A N K E R