Member Info for DrPatience

And this cannot solve the problem of raising the full amount anyway, as far as I can work out, even more so if the maximum unused allotment is sold at a discount.

Although we have a couple of large shareholders, I doubt they can muster support from the rest (70% or so) afterwards if such a trick is pulled. Also not in the CEO's interest to undermine his own options...

I am very doubtful this will be tried, but thanks a lot for sharing!!

Nasty idea!!

So my read of this:

Raising say £12-15 million or whatever the amount is cannot just be done. The current limits are stated below. There is disapplication of pre-emption rights in place, but puts a limit on shafting small shareholders, as far as I can see.

If they want to raise the full amount, presumably they need to arrange EGM, serve the proper notice etc. I have not checked the finer print, but it will take more than to the end of May, let alone do the book build afterwards.

Bridge loans? Bad farm out? Ask Shell for extension? Or merely let Pensacola go?! Lots of moving parts!!!

Thoughts?

Last AGM:

8. Disapplication of pre-emption rights (Resolution 8)

In line with the previous year, the Directors seek a 25% disapplication of pre-emption rights in respect of allowing the Directors to allot new ordinary shares for cash. The Board recommends that Shareholders approve a 25% disapplication of pre-emption rights at the coming AGM, in order to provide your Board with the flexibility to quickly and efficiently raise any further funds that might be necessary.

This resolution will be proposed as a special resolution. The Act also requires that equity securities which are to be allotted for cash must first be offered to existing Shareholders on a pre-emptive basis in accordance with the requirements of section 561(1) of the Act. In accordance with normal practice, the Directors are proposing resolution 8 as a special resolution to disapply the provisions of section 561(1) in relation to certain share issues.

Resolution 8 will, if passed, empower the Directors to allot equity securities for cash otherwise than in accordance with the statutory pre-emption requirements either in connection with a rights issue or other pro rata offer or otherwise up to a maximum nominal amount of £2,327,415 representing approximately 25 per cent. of the Company's issued ordinary share capital as at 26 April 2023 (being the latest practicable date prior to the publication of this document). The power will expire at the conclusion of the annual general meeting in 2024 or, if earlier, on 31 August 2024.

Last AGM:

7 Directors' authority to allot shares (Resolution 7)

This resolution will be proposed as an ordinary resolution. Under the Act, the Directors may only exercise the Company's powers to allot shares if authorised to do so in accordance with section 551 of the Act. The existing authority conferred on the Directors will expire at the conclusion of the AGM and it is proposed under resolution 7 to confer on the Directors authority for a further period expiring at the conclusion of the annual general meeting in 2024 or, if earlier, on 31 August 2024. The authority will be limited to shares up to a maximum nominal amount of £3,103,220 (representing approximately one third of the Company's issued ordinary share capital as at 26 April 2023, being the latest practicable date prior to the publication of this document) and a further £3,103,220 (provided that such additional authority may only be used for the issue of shares pursuant to a rights issue).

Although at present the Directors have no current intention of exercising this authority, it is considered prudent to maintain the flexibility that it provides.

As at the date of this document, the Company does not hold any of its shares in treasury.

Let's agree to disagree. If you want to believe all this stuff, be my guest!!

99ice, you may well be right.

They may have less than great offers and the RNS softens the blow and also tells the large shareholders (who clearly is not supporting a fundraise) that this is what happens when you don't play ball. CEO covering his own back basically! Why not go to all investors? Nothing to lose trying.

David: not the best time to be ramping without evidence/substance, frankly, as much as I for one would love for you to be right!!!

Fair point re options, but if this is not resolved, Delt will only extract value from Selene and be wound up, in my view. That value will be a fair bit more than the current sp, but they will gain very little, if anything at all, from these options.

Re: "If the Director holdings are indeed so low, there’s nothing to stop them worrying about wiping out SH value."

The key thing is for as many as possible writing Deltic that a fund raise should include ALL shareholders pro rata. Like that the price doesn't matter and everybody will benefit fairly. And if not, we need a proper shareholder revolt because otherwise we will be short changed due to the unnaturally low share price.

Email:

ir@delticenergy.com

Not correct guys. The exec team has a potentially very large pool of options at stake. Check historic announcements.

If the sp is destroyed, they will get NIL! If they pull it off, they will eventually end up with life changing wealth. As simple as that.

I am sure they are fighting hard to get this resolved. Dirty deals with large investors are always a possibility, but I doubt it.

Getafgrip, I agree with you, there is zero chance of a meeting/getting more details during May.

I have supported a fundraise for a while, as that's the way of retaining maximum value in the asset, but clearly that was not part of the strategy. The CEO has been very on that. However, if we are genuinely on the ropes now, an emergency fundraise should be attempted. It may have been aired with the large shareholders or other parties, with no great interest. This may explain the RNS, as it will call their bluff.

It doesn't actually matter at what price the fundraise is done, as long as ALL shareholders are given the chance to buy their fair share. This is my biggest fear, ie that an accelerated bookbuild will give large investors more shares, relatively. Without them investing, you cannot realistically do a fundraise with just small investors like us.

The post funding value would jump significantly as you would have 2 fully funded drills, with 30% retained in Pensacola. From a cap sheet perspective, it's a big winner. If we are left out, we will get diluted to hell, in which case we are better off letting Pensacola go to be honest.

Emails to the CEO should really focus on getting a fundraise done asap, fairly!! That's what I will do.

CEOAdam Re: "This wasn't from the last RNS. Swindells said they couldn't fund it. So witch is correct?"

The numbers are of historic nature; relates to the last Pensacola drill. The latest RNS is just that, the latest position. They have a bit of cash to run the business for at least one year, as far as I can work out, but need to fund their fair share of the next Pensacola drill, this Q4. 30% of $50-60 million, I guess.

D6576, I love your optimism, but this will only fly in two scenarios:

1) Pensacola is saved. First jump. Pensacola and Selene drills go well, second/third jumps.

2) Pensacola is lost and the Selene drill goes well, first jump; until then a random muddle in the current range, possibly lower due to the psychological impact of the monumental failure of the Delt management team (their last one no doubt), even though a loss of Pensacola is already baked in.

Getafgrip, correct, but I cannot see the board (and large shareholders such as Spencer and Sneller) accepting a low ball offer. Then it's better to just give up Pensacola and take it from there.

CEOAdam, yes, unless theysort out Pensacola, there is no point. Simple.

It's not over yet though. The market has assumed Pensacola has been lost. An assumption rather than a guaranteed outcome.

I got the impression that Cluff is out of Deltic shares or if he has a shares, it's not a lot (less than 5% for sure).

Cluff and Spencer clearly doing business together. If Delt fails, I can only assume Spencer will be a very unhappy bunny and it may impact their relationship. After all he has in good faith put a fair few millions in, although it is small change for him, of course!

https://newzwire.live/meet-the-two-british-aristocrats-targeting-one-of-zimbabwes-biggest-lithium-assets/

Getafgrip, that's an extraordinarily thoughtful and insightful post! Thanks! Lots to reflect on.

That's drivel, Ade, sorry to say. Happy to top up if that happens again!!

Buying Teck costs money, but we get an asset. An investment for the future.

Interesting...but why is the sp falling?

Global domination surely has to be a good thing!

Copper pretty perky these days and the best is yet to come with Teck, energy transition, China recovery, etc.