Member Info for davetherave1

I dont think Ganfeng have any rights to the remaining 50% of Zinnwald do they? Its BCN that have the rights. Ganfeng have the option to go up to 50% of Sonora, but their only exposure to Zinnwald is via their direct holding in BCN which is 29.99% (or likely to be when they take up the rights to get back to original holding)

Please correct me if I am wrong

So is that BWM, Tesla and VW that have now confirmed supply agreements with Ganfeng?!

No wonder Ganfeng wanted a piece of us!

it doenst warrant a share consolidation surely. only 225m in issue

MrC - point 1 was always enough for me not to invest in UKOG!

Mrc, I've followed UKOG a while but never invested. The thing with it is, there is a 50% increase in it at any stage, but also just as likely to have a 50% drop at any stage. Just seems a bit too much of a lottery to me.

Not that any other AIM share isnt a bit of a lottery, just need to try and find the ones that look a bit less of a lottery (I'm currently only in BCN and AGL on aim)

if it follows the exact same pattern and drops just before they uptake, then it just goes to show how easily the SP can be manipulated

should be a good time to buy in. Straight away you have a much better average then most in here! (including M&G, Hanwa etc)

quickest £3.5m they will ever make!

I know they wouldnt look to offload any for a quick profit as they are clearly longterm 'cornerstone investors', but would there be anything in writing to prevent them from selling any?

abd - I thought that myself as well but was then corrected (cant remember who corrected me). The anti dilution clause basically means they have the right to purchase more shares from the company to get back to their original 29.9%. That would mean more cash for BCN too which cant be a bad thing, but would obviously dilute all other holders slightly.

One thing I thought about the other day but forgot to ask - if Ganfeng to take up their rights to buy back to 29.9%, surely that would then slightly dilute M&G again. Wouldnt they all (including Hanwa if they decided) all have to buy at the same time in order to ensure they all get the correct % holding? otherwise they would just keep slighltly diluting each other wouldnt they?

M&G did get a great discount but does anyone recall what they paid for their first batch?

Close to getting back to my average now.

Does anyone know off the top of their heads what our major investors averages are? (My maths isnt great but I can just about work out Ganfengs!!)

Tomcat - so have Ganfeng and Hanwa been diluted by that equity issue? One would assume they would want to invoke the pre-emptive rights not to be dilutes so does that mean more shares will be issued, but obviously raising funds as a result?

Zarro -

1. I see your point on the RK debt, thanks for your 'house buy' example which helps me understand better (especially having only just moved house myself!) . Not quite sure how it works here though as I assume that RK will only hold a charge over the percentage that BCN still own, they wouldnt have a charge over the 22.5% that GF now own surely?

2. yes I think you are right on Hanwa, I think its all but guaranteed that they will participate though so I would consider that as banked (albeit via a placing so a light negative effect on current shareholders)

3. I agree. I have tried again to find the bit where I thought I read that they could not be diluted but I think it is as you suggest, that they have the first right to participate in any placing to ensure they remain at 29.9%

4. Agree they obviously have their own running costs so the 40m cash in bank will slowly dwindle. Not sure what will happen with Zinwald, guess it depends on whether its spun off at some point

I also didnt take the current RK drawdown into account.

As Addicknt says - clearly confusion with PI's trying to piece it together, would have been nice to get a bit more certainty from PS so we are not all left guessing

Zarro - Ganfeng will need to put in 22.5% of the full cap ex cost of 420m, not just 22.5% of the 270m balance from your calculation.

So total cost of 420m
Less 22.5% Ganfeng must pay (94.5m)
Less 40m cash in bank
Less 150m RK debt facility
Less 25m hanwa
Equals 110.5m left to fund

If Ganfeng take up their 50% it would be
420m less the 50% paid by GF
Less 150m RK debt facility
Less 40m cash in bank
Less c15m from GF to increase to 50%
Less 25m hanwa
Equals zero funding left with money left over

Have I worked that out right?

Zarro - I’ve looked through previous RNS’s and can’t see any reference to Ganfeng not being able to be diluted, think I may have just read it on one of the message boards and it stuck in my head

Zarro - I’m sure I read somewhere that Ganfeng could not be diluted during any equity issue. I could be wrong on that though. Dont recall seeing it in relation to Hanwa though so you would assume they would participant in order to maintain the same percentage

R7632 - I think the bit about ganfengs 29.9% of BCN might be wrong. They are just investors who hold 29.9% of BCN so I don’t think they would be expected to pay 29.9% of the cap ex at this level. (Ps I know they are not ‘just’ investors as have expertise experience etc) but in terms of having to pay further costs at this level, I don’t think they are obliged too.

Yes they would have to pay 22.5% cap ex at project level increasing to 50% assuming they take up the option.

I think that’s right anyway

please forgive my ignorance, but if they are looking to raise a max of £50,000,000 why do they need to issue 500,000,000 shares?

we currently have a mc of £50m with 190m shares in issue, so (as it stands and assuming they get interest) wouldnt they only need to issue 190m more shares to raise an additional £50m?

abd1991 - Ganfeng are in the process of evaluating the costs now so will hopefully get the costs down with their expertise and procurement procedures.

The RNS states its still 420m becuase at the minute, it is still 420m. I think everyone expects it to come down a bit from there though, but we need to wait for the Ganfend report to find out the final cost

Zarro / Wolfi - I though Ganfeng had a clause that meant they would not be diluted in the event of further equity issue? Also, I thought the Oman fund never happened as the completion date expired?