Member Info for Daisan

That should be a fun process. Nothing like two sides equally revolting fighting each other! MKA looks unlikely to bring anything to fruition in the same way as RGM with Greenland or Mambare but I get that people will see trading opportunities there. I actually think that KGLD is more likely to advance the Finnish gold opportunity.

AIM investors are clueless on the whole. How people can't see the potential of the situation is beyond me so I am becoming reconciled to the fact that Labro are going to get this very much on the cheap.

Well, the retail offer is only open to existing shareholders.

Not sure that it will be that easy to flip 70% of the company! You have to think that they are in it for the long game and I suspect that they may have done a very astute deal over the long term - it is not that easy to grab control of a significant gold operation and they have taken advantage of the situation. I believe that they could have been even harsher given the financial circumstances of the company. Existing shareholders may have been at risk of complete wipeout but at least now they get to participate in any potential recovery.

Assuming that the retail investors take up the offer of 540m shares (to give 5.65bn shares overall), I make the resulting market capitalisation about £106m based on a share price of 1.875p. Not sure what the cash/debt position will be after the dust has settled so unable to work out the enterprise value from that, which is more significant. As a result, I can't compare it to similar operations such as AAZ and SHG.

That is one heck of a raise by AUE but they have already found their 'white knight' who is providing the bulk of this funding and, I believe, has got a seriously profitable transaction for themselves at the expense of the existing shareholders. I am not sure that we are quite in the same boat - a similar one but substantially smaller! They were about to breach their banking covenants I believe having re-scheduled significant debt repayments ($14m rings a bell) several times. We have gone straight for the 'going concern' option! I also believe that a diamond mine is a different beast to a gold mine. Fewer and more specialised players.

Sisyphus, I suspect that you are right but a lot of people will remain on the sidelines at least until the £500k fund raising has been achieved.

bitSA, Is that the final piece? The 'Air' to go with the 'water', 'earth' and 'fire' that we have already had?

Wow! That is a big chunk of cash and should put them right. Unfortunately it will put them right by giving away 70%+ of the company. Always a it dodgy when one party holds such a large chunk as they can do whatever they please. However, as other institutions are participating (it would be interesting to know who) there must be some kind of undertaking which has eased any concerns. Given the size of the fund raise you would expect 1.5p to be a floor. Interesting investment decision here.

So no response. Which suggests that the deal on the table was probably as good as it was going to get. It feels very odd arguing in favour of KGLD and on the same side as Timeless (filtered). Although, given our history, the village idiot probably thinks that I am speaking against KGLD.

Valency, I agree the decision by the DMR was ridiculous (and not for the first time either as I understand). But investors were looking at the incident as just confirmation of the fact that management did not have control of the situation which made them focus on the elephant in the room - the going concern question. If they get over the £500k issue then the share price will respond although I expect not to the previous normal area of 6p as too much damage has been done and too many shares are now in the hands of investors with a short investment horizon I suspect (especially when you consider that a great deal of shares would have a 100% gain at a little over 3p). I don't agree with the post that this will be taken out by a hostile takeover at 2.5p. Hostile takeovers tend to drive the price up violently and a third party would want to do things much more subtly to ensure that the price doesn't race away from them. Look at CGH as an example at the moment - shares are being collected gradually and gently in the market place at levels much lower than they would have to pay in a hostile takeover situation.

I think it is the 'getting through the next month or two' bit that has spooked the investors. Or should I say non-investors now. I wonder whether any of them will be buying back in?

For Labro's coffers this morning and people still seem to be bending over backwards to help them get them. Are people really this thick?

Well, 2p paid suggests that a lot more people believe that the deal will be done. The trades are following a similar pattern today as yesterday - small sells and larger buys. I confess that I did not expect to see this up at any point today. It will still be very volatile for the rest of the session. Another 10% traded?

Well, people need to see that the company is going to survive more than the next few days so the £500k is critical. I tend to agree that the funding will be raised but the market is pricing in a significant probability that it won't.

1.85p paid. Perhaps 1.75p was a little out? ;-)

1.65p paid! Quite amazed really.

You may be right as they have a fair amount of skin in the game and must realise that there is a significantly valued asset buried deep here. Unless, of course, the big investors have been approached by a third party who are happy to see this fail and have done a deal. Less likely maybe but certainly wouldn't be the first time.

Well, they were idiots to go for 2p. 1p was there for the taking and probably 50m warrants to go with them. I know it would have hurt us all but at least we would have had the cash.

Are people looking for on this? They indicated that they were looking for a gold deal away from India. The near term cash generation is hot air and if they did find something it would cost them way more than they are paying now. Even MTR's Thai property (which, I believe, is a long way from cash generation) cost multiples of what they are paying here. You just cannot do near production deals cheaply. Are people waiting for the Fintech deal? I think that this would make for a rather confusing picture if they did this now. Or are they waiting for Kolar to suddenly kick off? I know that something has been made of 'grandfather rights' but it looks more and more likely that this term refers to how old you are likely to be before anything happens. Let's see what they make of the gold asset and judge them on that.