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Missed a step out.

Lets suppose that you do the above: when the IPO happens you subscribe for the IPO and sell your POW/RRR and hedged your position. If the IPO price is higher than anticipated, it will be reflected in the POW/RRR share prices and therefore you have neutralised the rise in the IPO price.

DYOR

Now that RRR and POW have confirmed that they intend to list RRAL on TSX an interesting trade comes up.

If you are an investor who would normally invest in an IPO for RRAL on TSX why wait when you can pick up RRR and POW at a substantial discount to the listing price. Same with pre-IPO funding.

Lets suppose that they value the license assets in Victoria at A$10mil pre-money and they take A$3mil in. Those investing in the pre-IPO money get 13.23% of RRAL and RRR holds 38.5% of RRAL. The look through valuation is £2.9mil. RRR's market capitalisation is currently about £7mil. It has got to be a close call; do you fund the pre-IPO money or do you buy a position in RRR?

DYOR

Up 13.89%.

Maybe the penny is dropping.

What do you reckon Tragic?

Power version

https://www.proactiveinvestors.co.uk/companies/news/929675/power-metal-takes-big-step-towards-listing-australian-gold-jv-after-publishing-ni43-101-report-929675.html

Slight difference in emphasis. AB says we are going for TSX, PJ says North American and that TSX is one option.

DYOR

https://twitter.com/proactive_UK/status/1308373489049575424?s=20

Listen, I have been in and out of NTOG I think four times now. If I can do it, why can't you and others?

You were investing in NTOG before me and also when I wasn't. It is not my job to advise you or anyone else. You are a big boy, I am sure that you can make your own decisions.

I took some of the 0.25p placing and have sold some between 0.4p and 0.42p. You can thank Mr Turney and Erridge for the current share price: without his interventions NTOG would have raised money at a much higher price and he killed the price the other day when he dumped. Without Mr T I reckon this would be up around 1.5p/2p. It will get back up there but probably not till back end of Q1 2021. Though you never know: the Cypress drill could come in as a cracker and the same with the Permian Workover.

DYOR

From the POW RNS

Paul Johnson Chief Executive Officer of Power Metal Resources plc commented:

"The receipt of the NI 43-101 is a key moment where, for the first time, investors can see in this report a detailed review of the geological prospectivity and potential within eight of the RRAL licence applications.

The report accelerates the JV to the next stage of its development, charging RRAL with more detailed exploration plans to implement on licence grants and to assist with corporate negotiations in respect of RRAL interests.

Both Power Metal Resources, and our JV partner Red Rock Resources plc, through RRAL have an interest in one of the largest Victoria goldfields licence application footprints. RRAL is a substantial venture and the Report is the accelerant needed to capture the value opportunity available.

The JV partners have many options through which to create value and are working at pace to move this exciting opportunity forward."

"assist with corporate negotiations in respect of RRAL interests."

Note not initiate but assist with ie., negotiations are ongoing.

Note, "The JV partners have many options through which to create value and are working at pace to move this exciting opportunity forward"

The report only touches on 8 out of 12 licenses: what happens with the other four? Separate spin out? Sell a couple and keep a couple?

The report sets up the pre-IPO funding discussions.

DYOR

Indeed.

Victoria and TSX is the current hot spot. Next is confirmation of a listing and pre-IPO funding. No one is going to give them pre-IPO money at the JV level without a commitment to IPO.

Very interesting.. it will need reading a few times. Big step on the way to a listing.

Also interesting from POW re the Silver.

Oh and NTOG was blue on a day nearly everything else was red. If you hold on you might make your £3k back.

Not on his payroll mate and if being down on £3k ish on an investment upsets you so much perhaps you shouldn't be investing?

It may surprise you to know that CEOs do talk to investors. In fact I was swapping messages with him this morning.

Anyway, fingers crossed for your £3k: obviously that is the only thing that matters.

https://www.metalbulletin.com/Article/3952210/Home/China-nickel-ore-prices-continue-to-rally-on-tight-supply-bullish-sentiment.html

No thanks. I know what CEOs have to put up with. They get grief even when they get it right.

Seriously though, in my humble opinion NTOG has progressed well this year. The Cypress drill is not far off, I suspect it will be finished late October/early November. The new Permian workover could be anything between 10 bopd and 40 bopd: for NTOG that is material.

DYOR

Ah yes the man who spends 24/7 ****ging off NTOG and ML because his £3k investment went wrong. I would hate to see how you would behave if you had invested decent money.

If you look at my posts they have been consistent:

Get to break even with smaller deals: positive cashflow, workovers and upside from drilling in due course. Getting to break even in the current price environment will look pretty good going into 2021.

My view is that Mesquite was a mistake and Egypt was just just stupid. Unlike you, I have discussed all the above with ML and what I have posted is what I have said to him directly. I told him earlier this year to forget larger deals and just concentrate on nicking good value deals that would get him to break even. I have oil fields in Oklahoma via a private partnership and know that really good terms can be secured at the moment but you need to move fairly quickly when they come up.

With the Caballos deal, the Cypress farm in and the latest Permian Basin Farm in NTOG is executing exactly as it should. Small deals that don't require huge discounted placings, cash flow positive, additive to daily production with a portfolio of potential drill targets for when prices recover.

In addition to the above NTOG has other potential farm in targets on Pine Mills: they may or may not happen.

Currently 2021 looks pretty good. It is plays out like it is looking like it will, it should mean that any placings from NTOG are for deals and not to keep the lights on.

DYOR

https://twitter.com/businessinsider/status/1306631920915222532?s=19

The next RNS will likely be the spud of the Cypress well.

https://www.lse.co.uk/rns/POW/new-strategic-joint-venture-established-botswana-bv5pluh6z6raz6q.html

All going very well.

Low cost incremental production adds, with workover upside and acreage to drill at a later date.

I don't know for deffo but I think this, along the Cypress drill and Callallos takes us to break even once the work is done and successful.

Fingers crossed.

DYOR

https://twitter.com/HedgehogTrader/status/1306978278289428486?s=19

https://twitter.com/Share_Talk/status/1307716211392655360?s=19