Member Info for GKahn

Inco I believe acquired Voisey Bay

Mike Buck had indicated that he was determined to avoid a dilutive fundraising if possible; and only recently, he secured the loan from Petrovis. As there will be no drilling operations this year, the Petrovis loan would have been sufficient for PM’s needs well into next year, which provided a window to pursue JV, farm-in or other funding options. In the event the Board has pursued an entirely different strategy with a significant fundraising at a very substantial discount immediately after the EL approval. So, what has changed? Explanations please.

The closing share price of Petro Matad’s shares on the day of the exploitation licence RNS (Wednesday 7 July) was 7.60p, with an intraday share price over 8p. On the following trading days, the closing share price was 7.05p (8 July) and 7.20p (9 July). The very significant slide in the share price started on Monday 12 July, down 0.85p (12%) to 6.35p, followed by a further fall of 0.90p (14%) to 5.45p on 13 July, and closed at 4.90p on 14 July. The fundraising at 3.50p was announced after hours on that day. Clearly, the fundraising was being worked upon soon after the exploitation licence was granted and certainly during the two days when the share price slid from 7.20p to the placing price – a discount of over 50%.

Notwithstanding the EL approval and the fundraising, the current market capitalisation is now less than the market capitalisation immediately prior to the EL approval. Accordingly, on what basis can Shore Capital possibly justify that the placing at 3.50p is fair and reasonable as far as shareholders are concerned?

Accordingly, Mr Bushell, being the sole independent Director considers, having consulted with the Company's Nominated Adviser, SCC, that the terms of the participation by each of Petrovis and Mr Buck in the Fundraising are fair and reasonable insofar as Shareholders are concerned. !

Consider the following: the company had announced that there will be no operations in 2021 and that the Petrovis loan would be sufficient for its expenses well into next year. In the meantime, Petro Matad would seek a JV or a farm-in partner. This raises the question as to why this fundraising went ahead so soon after the Heron exploitation licence was awarded.

I believe the reason must be the assurances or undertakings that were given to the Mongolian government to secure the licence. Very understandably the Government would be reluctant to approve an unfunded operating plan. If this were the case, who gave the undertaking or assurance that satisfied the Government; and, most importantly, should such an undertaking or assurance have been disclosed to the market. Almost certainly such an arrangement would have been disclosable. The implications of allowing the market to continue to trade in ignorance of disclosable facts is really very serious and raises the question as to who participated in the conspiracy to defraud investors. By arranging a placing at a discount of over 50% of the share price in the immediate days after the EL announcement, the brokers and advisers clearly had the company over a barrel. But it gets worse because both Mike Beck and Petrovis participated in the placing; moreover, it is highly probable that insiders were selling shares ahead of the announcement of the placing, making substantial illegal profits at the expense of market participants.

In my opinion, the placing should be annulled if that is legally possible, Mike Buck should resign immediately, the company should replace Shore Capital and Arden Partners and seek a suitable Nomad/Broker with the mandate to find a buyer for the Company, a process that can be overseen by Tim Bushell (non-executive director) who, interestingly, did not participate in the placing.

Many thanks Spainish - it is now late here in Spain - i will add further thoughts over the weekend

Ma2brw
Many thanks we are of like minds. I intend to apply a lot of pressure next week as what has happened is a disgrace . By the way, I am not getting a response from the Company or Shore Capital. Undoubtedly they have a problem

Ojay
I shall be lodging a formal complaint with the LSE.
The fact is that we have been legged over and, if there has been criminatory, so be it.

Thanks very much Simon, much appreciated
Ojay - it sucks because there has been criminality which has cost us dearly - in my case more than £250,000

Ojay
It really doesn’t matter what is going on behind the scenes. The fact is we are victims of criminality. It is blindingly obvious and I am resolute to expose this which I am sure is in the long term intertest of shareholders. We cannot and will not turn a blind eye to what has happened.

The closing share price of Petro Matad’s shares on the day of the exploitation licence RNS (Wednesday 7 July) was 7.60p. On the following trading, the closing share price was 7.05p (8 July) and 7.20p (9 July).

The very significant slide in the share price started on Monday 12 July, down 0.85p (12%) to 6.35p, followed by a further fall of 0.90p (14%) to 5.45p on 13 July, and closed at 4.90p on 14 July. The fundraising at 3.50p was announced after hours on that day.

Clearly, the fundraising was being worked upon soon after the exploitation licence was granted – hence Mike Buck’s silence – and certainly during the two days when the share price slid from 7.2p to the placing price – a discount of over 50%.

That the share price fell so dramatically while the placing was being worked upon by the advisers and brokers must surely attract the attention of the London Stock Exchange for a leak and possible criminality. Selling at over 7p and covering a short position at 3.5p must have looked irresistible!

The fundraising should be annulled - if that is legally possible. The company should find replacements for the Nomad and Broker and Mike Buck should resign.

going backwards into the siding

The announcement of Mick Davies appointment as chairman is now more than 5 weeks overdue. The company should provide an explanation for the reasons for the delay

Bluerill - excellent post re Alfacomp who is totally out of order - many thanks

"connection to high voltage line progressing, completion scheduled for May 2021, currently nearly 80% complete"

Many thanks Rocklwan

Correction. Admission 19 March plus 3 weeks takes us to today, but note "around" three weeks

I believe the new shares were admitted on 28 March (to be checked). Also, completion of the CLN is expected to take place around three weeks after Admission.
A few more days before I am expecting announcement of his appointment

Indeed, and the ex Ms Bridgen probably would like to see some money

Nick Bridgen’s 12 month lock-in over his 64,738,800 shares expires next week