Member Info for ElectricLion

Er, OK, just read this.: A bit worried now.

Irrevocable Undertaking

Metals Exploration has received an irrevocable undertaking from Galloway Limited ("Galloway") to vote (or procure the vote) in favour of, or accept (or procure the acceptance of) (as applicable), the proposed acquisition by or on behalf of the Company of all the issued and to be issued shares in Condor, whether implemented by way of a scheme of arrangement or a contractual offer (whether on the terms of the Possible Offer or including any revision or variation in the terms of any such acquisition which may be made by or on behalf of the Company from time to time) (the "Acquisition"), provided that the Company has announced the Acquisition under Rule 2.7 of the Code by 5:00 p.m. on 4 December 2024 (or such later time and/or date as the Company and Condor may agree) (the "Irrevocable Undertaking"). In addition, the Irrevocable Undertaking provides that Galloway shall vote against any resolution to approve any transaction or other corporate action which is proposed in competition with, or which might reasonably be expected to otherwise frustrate, impede or delay, the Possible Offer.

Galloway is beneficially owned by Mr Jim Mellon, Non-Executive Chair of Condor. The Irrevocable Undertaking is in respect of Galloway's entire existing holding of 50,512,597 Condor Shares (representing approximately 24.7% of Condor's existing issued ordinary share capital), together with any Condor Shares that would be issued upon the exercise of the 892,857 warrants over Condor Shares which are currently also held by Galloway (representing approximately a further 0.4% of Condor's existing issued ordinary share capital). Further details regarding the irrevocable undertaking are set out in Appendix 1 to this announcement.

33p! Ha! GTFO. What will the next CNR RNS say I wonder? This is exciting isn't it!

MarketAnalyst - you're new here, and with the greatest of respect, we don't need mindless ramping any more than mindless deramping. Ta.

Needless to say, we will have some differences of opinion, coming as we are from opposite directions. FWIW, I also have question marks over the union. Brutally, I'm not sure MTL are big enough to buy CNR and then pay for their mine. That could back-fire on both CNR (lower offer than we were hoping for) and MTL (bigger costs, more dilution than you are hoping for). It would be worth it over the long-run - CNR's mine once fully up and running, will make a lot of money - but the short-term is rather hazier.

Surrey and CuckoldKing - this is a conundrum we had already anticipated - how to you convince a purchaser that CNR is worth multiples of it's MCap? Well, you do so by educating them on the size of the opportunity here. Someone will make billions out of this mine. Will it be MTL? Not if they think they'll get it by faffing about like this. Put up or shut up time.

You may be more familiar with MTL and what it will pay, but we (think we) are more familiar with what JM will accept. So we may have a Mexican stand-off between two billy-big-balls billionaires. As with any deal, if the two sides can't come to some agreement then obviously the deal won't happen. Don't decieve yourself that MTL are the only ones looking CNR over though. They're just the first to break cover...

The OP said $ not £, and that's what I correctly quoted in my response. 60-70m GBP is closer, but even still, I can't see JM going for it. A hostile takeover is another story, but JM owns so many shares that it'd be an uphill battle to get enough votes.

Interesting you should mention that. I am a holder over there and used to be one here a few years ago. Initially I warmed to the CEO on watching a few interviews - he seemed like a good guy, in as much as you can tell. But got a bit tired of waiting for SP appreciation, so sold out for a small loss. Always kept an eye on things here though, with a mind to get back in at some point. I may do so once CNR's sale is crystallised.

It's simple maths. A hostile takeover has to have more than 50% of the votes. JM owns 26.12% (with warrents still in the bank I think). MC owns 2.38%, Oracle own 3.94%. I'd think all of those would vote JM's way. That's a total of 32.44%.

So a hostile offer would have to be good enough to persuade 74% of the remaining 67.56% of the votes to go for it. So what price would get 74% approval from the rank-and-file shareholders, and yet not be enough to meet JM's criteria? That's going to be quite a narrow band I'd suggest.

https://www.investopedia.com/terms/h/hostiletakeover.asp

Condor have been going bust for years! lol

They make no money. But they can string it along as long as Jim Mellon wants them to. In fact, forget about CNR and MTL. This deal is between Jim Mellon and Nick Candy.

"$60m - $70m"

Speaking from a Condor perspective, that's not going to be enough. Current CNR MCap is £58m/$73m.

...although the Proactive article itself seems based on the Sky one, so who knows.

The £150m number mentioned in the Sky article seems to be a bit ambiguous. They may have just added the 2 MCaps together.

Proactive are saying £150m for CNR.

https://www.proactiveinvestors.co.uk/companies/news/1061849/condor-gold-receives-takeover-approach-from-metals-exploration-1061849.html

"unless his position as director means he has to sit on the sidelines when it comes to the vote"

I don't think that's a thing. He has the shares/votes, he gets to use them. So yes, an uphill struggle to get a hostile takeover over the line. Bit of a soap-opera isn't it!

Genuine question Seingred, since you're more familiar with then than I am - what was Calibre's MCap when they bought out B2's operations, and what did they pay for them? IIRC, they basically just issued a lot of new shares to pay for it. Assuming they could find someone to buy the new shares, couldn't MTL do something similar?

Let's just wait and see Simms. There is still much that we don't know.

Contain the enthusiasm Simms. Calibre have removed themselves from the process, according to the latest information we have. It's probably all smoke and mirors of course, but to assume they will come in with a bigger offer is a stretch. Most likely they want Condor to buckle first, but that is not likely to happen while they're are other offers on the table.

More interesting to me is that the MTL offer seems like it may be a hostile one. Our BoD have not endorsed it, nor recomended it to investers. So they want more than £90m.

Where are the Chinese? Surely some multi-billion dollar Chinese outfit could give us the price we want out of small change? With all due respect to them, MTL doesn't appear to be big enough.

More like Calibre blown it with CNR. Reading between the lines, they always wanted more than they were really willing to pay for. That goes back to toll-mining days, and maybe even takeover talks back then (IIRC, their CEO went on a bit of a rant a while back about how some un-named juniors were being unrealistic about what their companies were worth). If they stump up the cash they can have CNR, but they're not the only the only ball in play.

Well, I'd thought that when I woke up this morning, the situation would be clearer than before I went to bed! I should have known better! lol

Still, big picture is that this has got to be the beginning of the end though. At whatever the final price is, it's going to be some way North of Friday's market close.

It's the same guy. Once on Twitter, once on Sky News.