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The last trucks with ESP equipment arriving on site in southern Rukwa ahead of ESP testing at ITW-1

So now we know.

Looking forward to the interviews going out. Will generate even more interest in my opinion.

MMs seem to be happy holding SP at around 0.44-0.46

From previous RNS, MET1 will be drilling this year. Good results will lead to a rise in SP.

From memory, there is drilling to take place this summer. Results could be interesting.

Very interesting.

Counter intuitive in a way from a PI perspective, however they are dealing in large sums of money, so I get your point.

And that finally answers my question as to what reasons are there for the IIs not to convert early.

Pity, I was looking forward to finding out who they are in the near term.

Thanks for the additional explanations.

Makes senses, thanks

Ok so what, they wait for SP consolidation or some other indicator of strengthening market?

I’m interested. Not my area of expertise, hence the questions.

Basic article on CLNs

https://harperjames.co.uk/article/convertible-loan-note-explained/

Researching via Google ! whether forward selling against a CLN is actually a ‘thing’.

Strikes me as risky, as if the SP goes up in between the forward sell and the conversion, less profit is made. The RNS says they can’t short (although the seems to be some caviat around this).

Reading the link, the lender faces some disadvantages, so I would expect them to want to convert early whilst SP is low.

Thoughts?

If there is one thing that I have learnt about AIM, is that investors become bored if nothing is happening and take their money elsewhere.

The TZ ceremony seems to have been downgraded to ‘in due course’ in the RNS.

HE1 is definitely an investment for Q4 2025 and beyond.

Not if the company repays in 12 months with either a) cash b) shares c) a combination of both.

So it’s in their interests to convert, isn’t it?

Of course there may be more in the fine print than in the RNS.

So what does’ The Company has given warranties and indemnities in favour of the investors, which is customary in a transaction of this nature.’ ?

From the RNS

Ok so where does the 12% come from?

The 12% mentioned in the RNS ISIT a ‘default’ occurs.

Ah ha

Thanks CP

That was more the nut of my question; what advantages to the Investors are there for not converting early/ or at all.

Q4 is a bad example as CLN has 12 month period:-)

Anyway, my questions stand.

Just trying to make sure that I understand how this works.

Thanks

Thanks, however that wasn’t the angle I was coming from.

The RNS from 18 July states ‘ The Investors may elect to convert the £10 million Advance into ordinary shares’

So this may not have happened yet.

My understanding is that there will be a conversion notice and the SP calculation is taken from the date of this notice.

So let’s say that they haven’t raised a conversion notice yet and just for sake of argument, they decide to do this Q4 next year. The SP is definitely likely to be higher than now, so they will receive fewer shares.

This I would expect to see some sort of conversion notice sooner rather than later, unless I am missing something?

Also would the conversion notice provoke an RNS?

So the three IIs don’t have to convert, however likely to as there is a definite profit potential in it for them.

Presumably they want to pick a time when the SP is ‘low’, so they receive more shares. Isn’t that likely to be soon, before news of TZ ceremony and Colorado starts to come through?

Is there an advantage in them waiting? Apart from if they think the SP will reduce further?

Let’s see movement when US come on line.

Looking forward to September.

I plan to wait until after tomorrow.

In recent Proactive Investors interview, Lorna Blaisse mentioned that they have commissioned a Hydro geological study. All sensible steps to ensure success for when they are ready to drill.

Worth listening to the interview.