Member Info for Edgein

You're welcome guys and gals.

Sienna not at the moment, no talk of consolidation. I wouldn't imagine that there will be buybacks for some time yet, company would need to be a producer first. But its an option in the future.

Mike,

Yes the closest in size that I can think of is Pharos Energy (PHAR), formerly Soco international, they're on about 5-6000boepd (£90m market cap) and constantly doing share buybacks. So not an enormous oil and gas producer. Obviously lots of the big producers do very regular share buybacks too. So as an example after FFD of Tobias (pending flow rates etc), it could be possible. They'd need to fund FFD on that plus likely some other wells, so a few years off yet, but I'd recommend share buyback over dividends for the first while. Again if Mr Karam manages to land an offshore production asset interest in Angola that would put CRCL on a new scale. So lets see what happens.

Regards,

Ed.

If anyone isn't aware of the significant potential at Canegrass these might be useful:

https://huntsmanx.com/news-media/news/exploration-targeting-at-canegrass-reveals-potential-for-lct-type-pegmatites

Aldo Resources project is just 1.4kms to the East:

https://www.aldororesources.com/wyemandoo-critical-minerals-project-2/

Still very active on the project with previous strong drilling results up to 30m pegmatites intercepted (rock chip sampling)

https://wcsecure.weblink.com.au/pdf/ARN/02732572.pdf

https://wcsecure.weblink.com.au/pdf/ARN/02551339.pdf

https://wcsecure.weblink.com.au/pdf/ARN/02552570.pdf

Regards,

Ed.

Hi Nige,

Yeah that's true, ASX is definitely a strong market for mining companies. Yeah true we may get some more info on the Mt Weld assays before year end too.

I've submitted my votes for the GM earlier today too, although that should pass easily.

Sienna,

You were mentioning the possible fully diluted shares in issue. Currently Mr Karam couldn't convert all those new 0.8p shares as it would take his interests above 30%. Align will probably convert more of their warrants at some point which would allow Mr Karam to convert some more. Although if the company starts share buybacks when they become a producer that could neutralise a lot of the warrant shares as they're converted.

Regards,

Ed.

Hi Nige,

It does happen for sure, Keras Resources floated their Pilbara gold assets on the ASX (Calidus Resources), those shares were then distributed to its shareholders. Now Calidus has JV'd with a large global lithium producer and have been talking for over a year about de-merging its lithium assets into a separate ASX listing. If all goes well here no reason CRCL couldn't do the same. A great way to increase shareholder value without a great deal of spending, makes Canegrass an exciting bonus. I'll not even get into the market value of Rubidium at this stage if its there in commercial quantities. As you say though ozzie lithium companies fetch an attractive premium at the moment.

Regards,

Ed.

GS,

Nice one, still a low cap you got in on. Agree given the Angolan blocks they could hit £25m+ cap pretty quickly. TO-14 results will be interesting for sure as TO-13 appears to have a larger than expected oil column downdip to the previous wells. We may end up finding that Tobias is bigger than that historic drilling and logging showed. We'll find out in due course.

Regards,

Ed.

Hi Nige,

Well that's understandable given what is currently going on in Angola as we transition into a potential oil producer. Given the current circa 16mmbbls of contingent and 297mmbbls of net prospective it will be the focus for many here that's for sure. However there is also significant potential in Canegrass too, ozzie battery metal miners are highly valued at present and their commodity prices have been going through the roof. I looked at our neighbours when CRCL picked up the asset and they've been getting very interesting results. The area is large and the prospectivity is very high. Once CRCL establishes cash flow one or more shallow RC drilling campaigns would imo be easy to fund, especially on any surface outcropping areas. There is a lot of hype around litmium and nickel at present, a great time to make a commercial discover and float that on the ASX for example. There is the potential for a large or more than one large lithium resources here, lets see what the rock chips come up with. Even a small commercial lithium discovery could be worth more than our £8.5m cap. We'll find out early next year if they have some decent chip grades and are moving to drilling. I'll maybe get time to dig out some info from the surrounding area later today or tomorrow.

Regards,

Ed.

GS,

Absolutely. Didn't think we would get exploration on Canegrass this year, thought it may have been 2024 given the activity in Angola. Mr Karam again showing he doesn't like to hang around! Now got lots of news to come from the sale of the legacy mining assets (GM 8th December), 2 well flow tests to come around year end and the decision on KON-15 application likely early next year and a market cap that's a little higher than the combined sale value of the old mining assets. I'm strapped in for the remainder of 2023 let alone 2024! An exciting period ahead short and medium term for sure. We may get Brazilian production or offshore Angola added to this mix at some point too. Share price likely to pop at some point.

Regards,

Ed.

This is an exciting second RNS from the company for sure. Our neighbours have had commercial grades of Li from their assets. It'll be interesting to see what these rock chip samples will hold as that will hopefully lead the company into an RC campaign over these potential pegmatites. Li and Ni prices have gone through the roof. This one could eventually be worth more than our current cap. Company sure is firing on all cylinders now. Hopefully if they find enough Li/Ni to be commercial they'll de-merge the lithium assets into an additional company (free shares for us hopefully).

Regards,

Ed.

Good morning Luke,

I'll certainly be emailing my broker later today to vote in favour of that disposal. Should get news on that in December, pipeline of news filling up very nicely it seems. :)

Regards,

Ed.

GS,

According to the last RNS the well spudded around the 13th of November. Hopefully a happy new year for everyone as the well is expected to take 40-50 days.

Regards,

Ed.

GS,

Good stuff, looks like a nice day in Angola too, perfect weather to get the drilling done.

Regards,

Ed.

Hi Nige,

Not 100% sure. I would guess that each company will put together a suggested work programme, they may have to also show how they would fund that. Then the strongest bids will win an interest in the block. Given how many are in for KON-15 some will be left out, but might be successful on other blocks.

Regards,

Ed.

SP71,

As the other guys said, great link! Good find. That's saved me an email later! That shows just how popular KON-15 was, a little surprised that noone at all bid for KON-1, but I guess its a bit marginal for the basin and therefore higher risk. We do have some stiff competition for KON-15. I would imagine that Sonangol will get operatorship of that block. We're up against Simples oil (they hold about 4 other onshore blocks), Afentra who will become an offshore producer sooner or later (their acquisition likely to complete this Q). So if we get 20% as an nop on that block I'd be more than happy.

As Mike has rightly said though we've a lot of targets to drill on the current blocks so best not to over reach at this point, I guess that's why they didn't compete for KON-13, all eggs on KON-15 bid. Quite sensible.

Regards,

Ed.

Nige,

Absolutely. 30mins to 1hr on google will highlight Mr Karam's connections to middle eastern money as well as many African banks and institutions, including National banks. The guy is also very successful in his own right too. Didn't take the Angolan's making up their mind when Apex was acquired by CRCL.

Regards,

Ed.

SP71,

Interesting. Of the 8 Kwanza blocks on offer I hope CRCL is in for KON-15 and KON-13 as they would be the best possible fit to our current blocks imo.

Regards,

Ed.

Good morning Luke,

Sure no worries, post it wherever you like.

Regards,

Ed.

Good morning Nige,

I will take by how long it took for the Angolan authorities to approve the APEX acquisition a measure of how good they view CRCL. That approval and commencement of work was very very rapid. CRCL with the Sonangol as operator have no problems meeting cash calls, part paid by previous funding and the sale of the mining assets. They also have a large undrawn facility and yet to receive the balance of sale of Mambare and Wowo gap. So yeah I'd imagine that CRCL are on good terms with Sonangol and the gov as a whole.

I see it as possibly working with rather than against AET, we might end up in a jv with them. 55 proposals for 8 blocks, so there's certainly going to be some sharing going on. Biggest interests likely to go to the likes of Sonangol and Somoil that have a presence there too, but I'd imagine we'll still get something. Anything would be a bonus to the three large blocks we are already in. CRCL with their current funding and activity with Sonangol are in a position to make a strong bid imo, even stronger if we get good flow rates from TO-13 and TO-14..

Regards,

Ed.

Hi Nige,

There are 22 confirmed companies bidding for the 8 blocks on offer. Sonangol will have first dibs on these, but the authorities over there are encouraging new blood in from the small to medium players. So the most popular blocks likely to have the most crowded jv. Yes certainly CRCL could be in for 50% or more of some blocks, but that might bet split down. If they are successful at 20-30% again for several blocks I would be more than happy with that. Currently they have 20-35% gross interests in the current blocks. Imo they'll get at least a wi in one block, hopefully more though.

I know from the UKNS bidding rounds that the interests tend to be split when a block has multiple bidders. Given CRCL's current activity in Angola and their funding position they should have a good shot for sure. Be interesting to see what happens early next year. In the mean times lots going on with TO-13 and TO-14.

Regards,

Ed.

SP71,

As the other guys have said, great find, nice to see it confirmed that Apex/Corcel are in that list of 22 applicants.

Nige,

As we're part of the consortium on Tobias redevelopment we'll be in good standing with Sonangol and that bodes well for this bid round. I would imagine that some or all of those companies will get at least one part block as the bid round is looking to encourage more small and medium explorers into Angola. We just happen to be holding a very well funded one at the moment and that will help strengthen applications. So very welcome news to get confirmed that Corcel are on the bidders list.

Regards,

Ed.

SteveV,

Within about 2hrs of me submitting my questions for the Q&A I did get a reply back thanking me for submitting my questions. Some of which have been partially answered today in the Q3 regarding the cash payment of the bond interest and early repayment of a the make whole amount for each unredeemed bond. But will be interesting to hear how the management answer those questions. Not sure when the Q&A is, but the questions were accepted.

Regards,

Ed.