Member Info for Edgein

Nige,

If the assets acquired are worth more than the current assets it would constitute a reserve takeover. Especially a production asset as in oil and gas PDP reserves are the highest valued. That would mean that if they successfully bid for an asset then they would suspend and issue an admission document for a future relisting. They'd likely use the new NED's long list of institutional contacts to at least part fund such a deal. We'd then come back out of suspension at a new share price based on the new assets etc. The relisting would take somewhere between 6-8 weeks and there would also be a period of them agreeing the financing etc. But lets wait and see, as this all depends on the size of the assets they're looking at. If its a very small field with shutin production then it may not need an RTO. If its an asset with say up to 5mmbbls 2P and 1000bopd it certainly would. Lets see how things unfold in the coming months. In the mean time we'll hopefully see Mt Weld drilled.

Regards,
Ed.

Nige,

SK did say in that market musings interview about 6 weeks which would have put it to around the 10th of April for the rebrand. I guess they could be waiting for a number of things. They only got in the new NED with the institutional contacts recently, so that's likely to structure a possible financing for one of those oil and gas acquisitions they talked about. Also Mt Weld drilling hasn't happened yet. Also they may not have been anticipating the buyout of Mambare so that might slow things down too on the jv front. My guess is once they get confirmation of a Brazilian oil and gas asset then we'll get our possible RTO and rebrand. But lets wait and see, we might even have the drilling and assays from Mt Weld before we see some Brazilian action.

Regards,
Ed.

"If this is really that cheap, why don’t we have any further director buying?"

Good question, here's your answer:

31 January 2023

Corcel Plc (London AIM: CRCL), the natural resource exploration and development company, with interests in battery metals including nickel, cobalt, vanadium and rare earth elements, announces that Mr. Parsons, the Company's Chairman, has elected that, rather than draw a monthly cash salary, that he receive his remuneration for the next four months in stock of the Company.

Agreement Details and Directors Dealings

With a view to both reducing the Company's cash burn and ensuring alignment with the Company's shareholders, Mr Parsons, the Company's Chairman, has proposed and the Company has agreed, that his monthly salaries from February 2023 to May 2023 as well as certain historic obligations dating from 2021, will be paid in the form of new ordinary shares in the Company.

Accordingly, 16,910,618 new ordinary shares of the Company have today been issued to Mr Parsons at the closing price on 30 January 2023 of £0.00265. This reflects the net balance of the obligations which are being settled by this agreement.

Regards,
Ed.

Nige,

Yeah there would be licence renewal costs etc with Mambare and to get it up to indicated like a chunk of Wowo gap it would have cost quite a bit in drilling costs, then the cost of PEA or Scoping study. The fact that they're getting a cash payment by Battery Metals is a positive. Will be interesting to see what quantum that payment is, hopefully hear something this week.

Hopefully Riversgold will get permission to drill Mt Weld soon too.

Regards,
Ed.

Leaving one asset? Are you sure? I count Wowo gap, Canegrass and Mt Weld and perhaps that small interest in the Argie lith asset if the jv goes ahead. CRCL may also be around 50% cash then too depending on how much they get for Mambare. Its certainly not as if Mambare was contributing to our £3m market cap either.

Regards,
Ed.

Goodness seems like there must have been some entertainment over the weekend that I missed. :)

Eazy,

Very true, they do have the funds from the recent bond issues. Most of that is likely going to the GGS upgrades and subsequent production increases. As others pointed out likely used for CCU recompletion works too. But interesting that the legal firm has held 5.65% holding almost one month later since they were paid on the 23rd March, they'll be well aware of what's going on with the JV too as there'll be plenty of legal work when they're getting into the detailed terms stage. So fees are not likely to be bond issue only. But interesting that they still have a material stake at this point.

Regards,
Ed.

Stas,

So why then does this large legal firm now own almost 21m shares are you suggesting they're bought another 1.5m shares on the market since 23rd of March?

Regards,
Ed.

If you sell something you don't own it anymore! Its not the same as losing something if they lost an asset they wouldn't get paid for it, big difference. If PNG authorities decided not to renew the Mambare licence that would be losing it, BM Pty buying the asset is selling it for cash. Hope that clears it up for you.

Regards,
Ed.

They aren't losing the asset that's what you're missing, they're selling it under the pre-emptive rights.

Regards,
Ed.

Steve,

CRCL just announced a placing for £1m recently which we'll hear about next week, so not selling just to boost cash. This move is a legal obligation BM Pty had a right to make an offer due to their pre-emptive right to Mambare, they have done so. We'll know how much for next week. That money could come in handy for one of their other assets. We'll see if the 41% of Mambare makes any difference to the JV as Wowo gap has a licence extension Mambare didn't and was under negotiation with the authorities. Also very little of Mambare is higher than an inferred resource, a much larger section of Wowo gap is Indicated reserve. We'll get more details of this transaction early next week, probably once CRCL discuss this with the potential JV partners.

Regards,
Ed.

Nope the company don't lose the asset. They'll sell it for cash to BM Pty, they still have 100% of the licenced Wowo gap. We'll find out how much they'll get next week.

Regards,
Ed.

Interesting development, the pre-emptive rights for Mambare have been taken up by BM Pty, so they're making a cash offer for our 41% of Mambare which has been waiting for some time for a mining licence. Also proof of the funding has been given so will get an update on that next week. So a bit of a cash boost from these next week from the looks of it.

Regards,
Ed.

Shaa,

Oh my quite a bit of M&A in their case experience.

https://www.mccarthy.ca/en/search/cases

Regards,
Ed.

Shareant,

Interesting, a law firm in for a big lump.

Regards,
Ed.

This thread shouldn't have been called the options thread, it should have been called the wild speculation about the future thread. Here's some more, get the JV done, get the production right up there, and I mean right up there and buy back bonds and shares in issue like many of the other north American companies.

Regards,
Ed.

Tiburn,

Very good summary of what the short term goals are. It'll be interesting to see where the momentum takes us. Take another of the market favourites. Jadestone, 2P of 47mmbbls and production of 10k bopd and a market valuation of circa £300m (all offshore SE asia higher OPEX, CAPEX/DEVEX). COPL are almost at that current 2P with 40.5mmbbls and can get half way there production wise with the BFU, a jv with the right company could take production and reserves way beyond that.

Regards,
Ed.

Nige,

Good question. Hard to say, they may get the results of the assays back in parts or all at once. I was just really expecting three, drill campaign commenced, concluded then assays some weeks later.

At least we have a date now for the GM.

Regards,
Ed.

Nige,

From that interview posted today it sounds as if they still need to get the rig contract signed. Hopefully like you say very soon after Easter they'll make a start on these ten holes. Might hear some outline terms or get an effective date on some of these Brazilian oil and gas acquisitions. I get the feeling that the new NED is in to finance those possible deals. But terms first then financing next, so hopefully soon after Easter we'll also see the rebrand and first oil and gas production (even if its just an effective date for the first acquisition).

Regards,
Ed.

Stas,

Can't argue with that, I've had many a correspondence with TCW, premier league of oil and gas management that guy. Another top guy for running an oil and gas company was Paul Barrett formerly of EOG (he didn't have the opportunity or assets of TCW) but did his best with what he had. Not a fustercluck to be seen from those guys.

Regards,
Ed.

Nige,

I'd expect Riversgold, followed by Corcel to announce commencement of drilling once it happens. This could be a material even for both companies. I don't think you can yet judge the size of these four targets without corresponding assays. Results could be very significant to both of these tiddlers. Not without risk, but what an addition to those large Ni assets.

Regards,
Ed.