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Of course there is the prospect of a deal not being done. If SAU say "we want it all in cash and only cash" (as is their right) and BMV can't or won't pay it all in cash, BMV will be in breach of the agreement and SAU will then be able to sell it to someone else or keep it or whatever.
Of course SAU may take the view that a chunk in cash and a chunk in royalty from BMV (if BMV can't/won't pay it all in cash) is better than hanging onto the asset or trying to sell it to someone else. But they aren't obliged to accept any offer other than the full amount in cash.
Obviously, to date, BMV has not offered to pay the arbitrated price in cash.

If a deal doesn't get struck, how do you develop half a mine?

So if these mines are a steal at USD10m for 50% why didn't BMV just pay the cash?
They either couldn't or wouldn't. Maybe they don't have the cash (remember the funding committment is a minimum of USD5m only).

But if these assets are really as attractive as some posters claim here, they sure are acting like they don't have the cash. Why else offer something other than cash on the table (which maximises the BMV situation if the assets will produce a lot of near term gold)

That's not true. There was an in specie dividend and the mall development ended up in Leadersmart, a private company. All UVEL shareholders at the time were given the equivalent shares in Leadersmart so those shareholders still own the mall development
Get. Your. Facts. Right

Bunion, they haven't said how big the first tranche they have received from their financiers is. It could be big, it could be small
The facility has a minimum total drawdown available of USD5m. That may be the size of the first tranche. Or it may not. The facility is also not USD20m. It is potentially up to USD20m with a minimum of USD5m

This is gonna boil down to whether SAU believes BMV has access to enough cash to develop the mines.

BMV have tried and failed to raise in the capital markets in the past couple of years, hence them going elsewhere. They are being very cagey about how big the first tranche of cash they have received is from their financier. Could be big, could be small. If SAU can be convinced they have access to the cash needed to develop the mines then SAU may take a smallish cash/biggish royalty structure to the deal

If they can't become convinced, all bets are off. Royalties, BMV shares etc would be of no interest to them. They would want it all in cash, up front. If BMV can't/won't do that, SAU could sell its share elsewhere or they could list it separately

Will be interesting to see what guarantees BMV are able to provide to SAU that they have sufficient cash available to develop the mines. A commitment from the funder for USD5m minimum (without actually depositing the cash into escrow) isn't going to cut it

Do you think the fact the Company has failed to keep its website up to date (a requirement for being listed on LSE) is a bit of a red flag? I am not aware of any other company listed on LSE or AIM that has such an uncompliant website

Just started taking a look at this company. I see that the NPV8 in the annual report has a value of GBP98m. Current market cap is about GBP60m so very little discount to this bearing in mind the assumed gold price in the NPV calcs is GBP1,400/oz

Am I missing some major upside? Is there the prospect of expanding the JORC resource substantially to increase mine size/life?

That's not drifting. That's the sound of Promoters like Winnifrith and "5 Share Tips" exiting their positions. They convinced punters that the buy price would be whatever SAU had spent on the JV and that was never going to be the case. Now the USD10m figure has been published, they're getting out as the spectre of financing has raised it's ugly head

I hope for all shareholders, that the financing is forthcoming. However, the BoD suggesting consideration may be in shares, royalties etc (which isn't what SAU want unless it's a very sweet deal for them) raises issues.

Be careful how you interpret the Funding Update RNS of September 28

It states that the Korean funders have made a minimum committment of USD5m and that BMV have received a first tranche. BMV has never disclosed the size of that first tranche.

Not trying to rain on your parade here. But to assume that BMV has USD5m from the Koreans may be incorrect

If you read the VALMIN Code, that the independent expert is obliged to folow under their terms of engagement, the amount SAU has spent on the mine is not how the valuation is calculated (this is specifically excluded for development assets and, in any case, more than one valuation method must be used)

http://www.valmin.org/#:~:text=The%20VALMIN%20Code%20was%20first,for%20petroleum%20assets%20and%20securities.

I wouldn't trust those two as far as I could throw them. I'll stick with the official RNS which doesn't say that. Good luck to all holders but skepticism is a healthy thing in these shark infested pools

Read it again. That's not what it says. Total facility is between 5m and 20m. First tranche has been drawn down. Doesn't say what that first tranche is

I have never seen an RNS before that fails to say who is on the hook for a transformative loan (so investors can assess whether they actually have the money or not) so forgive my skepticism

Bunion...
No mention of who the SK lender is in either the RNS or the Align Report
No mention of size of initial tranche in either the RNS or the Align Report
No mention of timing of subsequent tranches nor what activates them in either the RNS or the Align Report

Please show me where this info is in either the RNS or the Align Report

What the Align Report does say (although the RNS does not) is that there is no repayment schedule for the loan. However, it doesn't make clear what backstops (if any) there are on the loan in the event that the gold isn't extracted. Perhaps none. But the official RNS is silent on this matter

So as things stand, we don't know who the SK Investor is, how big the first tranche was, when any subsequent tranche is payable, what activates any subsequent tranche payment, what security (if any) is applicable to any of the tranches, what happens if BMV can't extract the gold to repay the loan. This is basic stuff, I wonder why BMV aren't disclosing this (as they should in any compliant LSE announcement)

I'm very surprised that neither the details of the SK investor nor the size of the first tranche have been disclosed. I would have thought that both were price sensitive and, as such , must be disclosed. Unless the first tranche is so small as to not be price sensitive of course

Hertstrder74 is on the money here. The market makers in HK were really worried that all the AIM holders were sitting on big profits at the IPO price and that, when they converted in to HK stock, there would have been a mass sell off and they would have been left holding stock they couldn't shift. So they dragged it down to a level where they think there won't be a sell off when the converted AIM shares become available to trade

Nothing's going to happen until after the ex AIM shares become tradeable. Then the HK market makers will see how much selling there is. If the answer is not much then they will allow it to increase if there is buying demand

So this creates a new floor at 7p. However, the IPO subscribers came in at 10.2p so I expect a lot of them to bail if the price gets back there.
Need to hold for a while to get more than the IPO price methinks as IPO subscribers liquidate

A gap has developed.....a lot of HK brokers aren't mandated to buy AIM shares so this is choking demand. At the same time plenty of UK brokers are force selling due to corporate actions (mine was going to force sell the buy I made on Tuesday by Thursday until we had a little chat)

This sell off will soon wash through but in the meantime it presents an opportunity where the risk profile of the relisting transaction is less than the potential reward. Hence me buying a few more this week

I felt that 8p was probably a fair discount to the potential range of HKEX list prices and, as such I sold a chunk at 8.6p a week or so ago
Just rebought those I sold as the price is too low for the risk. I suspect it's brokers who can't hold HKEX offloading.