Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Nope.
"As announced on 1 June 2020, the Company concluded a conditional Sale and Purchase Agreement (the "Acquisition Agreement") to acquire the entire issued share capital of ProspectOre Ltd ("ProspectOre") for a total consideration of £1.25 million, to be satisfied in new Xtract ordinary shares."
"Under the terms of the acquisition agreement , the shareholders of ProspectOre were required to sign share transfer certificates, agreeing to exchange their shares in ProspectOre for shares in Xtract."
ref: https://www.lse.co.uk/rns/XTR/bushranger-copper-gold-progress-update-dmuc92goxo5ufqs.html
Cyberiachas, that's oversimplifying the deal imo.
We didn't just stump up cash for an asset for them to walk away, they took shares and subsequently were able to remain exposed to the projects upside. I don't think you should get too caught up on the $1.25m figure because I would suggest that the structure of the deal meant that they knew they'd end up with considerably more than that original figure.
That 100m shares in XTR (the $1.25m "price") at todays share prices are worth nearly $8m.
N.b At 8pps it's $11mn, at 20pps it's $27.5m etc.
We paid them (mostly) in shares at 1.25pps:
"Xtract has agreed to conditionally purchase all of the issued share capital of ProspectOre ("Sale Shares") for a total consideration of £1.25 million, which will be satisfied by the allotment and issue of 100,000,000 new Ordinary Shares of 0.02p each ("Consideration Shares") at an issue price of 1.25p per Ordinary Share, to be settled upon completion."
We settled their debts:
"In addition to the Consideration Shares, Xtract has agreed that on notification by the Seller, prior to Completion, to settle from existing cash resources, a maximum amount of A$200,000 (£108,000) in cash relating to outstanding liabilities of ProspectOre, primarily being the cost to acquire the Anglo Tenements as described above, and Director loans of A$25,000 (£13,500)"
We agreed to aggressively progress the project:
"Xtract has agreed to spend at least A$350,000 (£189,000) on exploration drilling and resource definition drilling on the Tenements within twelve months of the date of Completion. The exploration costs will be funded from existing cash resources and future cash flows."
Ref: https://www.lse.co.uk/rns/XTR/bushranger-copper-gold-project-australia-o7u71uhdwbdy9b9.html
They knew we'd progress the project quickly and that they could essentially ride on our coat tails as part of the deals structure, that doesn't mean the assets value was $1.25m worth of metal in the ground.
It meant that they perceived $1.25m worth of XTR shares at 1.25pps a good deal for the asset because they knew how much those shares would be worth in the not too distant future (imo).
Ps. for those trying to work out wether grades will be commercial or not, very worth noting the following statement:
"The Phase One drilling programme will follow up drill intersections such as 159m @ 0.4% Cu and 0.2g/t Au in drill hole BRD001 and 169m @ 0.4% Cu and 0.1g/t Au in drill hole BRD009 (as previously announced these drill results have not yet been independently tested or verified by Xtract) and investigate the zonation of higher gold grades within the Racecourse Mineral Resource."
ref: https://www.lse.co.uk/rns/XTR/bushranger-commencement-of-drilling-98veayivcjvrvy0.html
Piece that together with the copper grades from the XRF and the commentary surrounding gold/ increased mineralisation at depth and I'd suggest you may already have the answer, assays will just confirm what we can already work out from info available (imo).
I don't think anyone who posts on this bb is qualified enough to answer that for you.
The best I can offer with the current information available: This will be considerably bigger than the current Jorc resource and is looking very likely to be commercial:
"Racecourse Mineral Resource, which was estimated in 2018 as 71Mt @ 0.44% Cu and 0.064g/t Au, at a 0.3% Cu cut-off, and has been classified as Inferred in accordance with JORC (2012)."
Ref: https://www.lse.co.uk/rns/XTR/bushranger-commencement-of-drilling-98veayivcjvrvy0.html
Just an observation: We had the geochemical update on the Monday (25th) after the first drill (BRDD-20-001) stopped on Friday (22nd).
The results are looking very promising considering the implied size of the resource :
o 40m @ 0.3% Cu from 110m using a 0.2% Cu cut-off
o 148m @ 0.3% Cu from 171m using a 0.2% Cu cut-off
§ Including 30m @ 0.6% Cu from 235m using a 0.3% Cu cut-off
o 287m @ 0.3% Cu from 474m using a 0.2% Cu cut-off
§ Including: 30m @ 0.4% Cu from 517m using a 0.3% Cu cut-off
§ and: 23m @ 0.5% Cu from 628m using a 0.3% Cu cut-off
§ and: 39m @ 0.5% Cu from 722m using a 0.3% Cu cut-off
Ref: https://www.lse.co.uk/rns/XTR/geochemical-update-on-bushranger-project-urg5n9bt5k8o95d.html
Recent comment re (BRDD-21-002):
"The drill core will next be logged in detail and copper grades will be initially assessed using a hand-held XRF spectrometer prior to cutting of the core in preparation for definitive laboratory sample analysis for copper, gold and other accompanying elements." ref: https://www.lse.co.uk/rns/XTR/bushranger-drilling-programme-progress-update-nqnwkp37h3kb0j3.html
Not sure about the rest of you but I'm expecting a geochemical update RNS imminently.
Blueballsnall you've sure changed your tune... so the other projects ARE looking good now you've bought in?
Interesting considering you were consistently arguing with me about how they were looking rubbish through Nov-Dec when the SP was 1-1.5pps.
I'm all for making money trading, but perhaps less of the blatant bashing/ramping to suit ones agenda would give your views a little more credence.
Was just re-reading the RNS's and noted the geochem update giving XRF results came 3 days after they finished drilling the first hole (BRDD-20-001) (ref: https://www.lse.co.uk/rns/XTR/geochemical-update-on-bushranger-project-urg5n9bt5k8o95d.html )
We finished drilling the last hole on Friday (BRDD-21-002) ( ref: https://www.lse.co.uk/rns/XTR/bushranger-drilling-programme-progress-update-nqnwkp37h3kb0j3.html )
I'm left thinking that we're going probably to be getting another Geochemical update in the not too distant future? / confirmation of the third drill starting?
I'm not even sure where my 'target' is anymore - it was smashed out the water some time around mid January.
I was originally looking for a £30-50mn market cap as had been my plan over the last few years... It reached it with ease and yet I still find myself here.
This project took my time consuming and painstakingly thought out strategy and threw it in the tumble dryer.
I'm still trying to get my head around where to set my sights to be honest.
We are about drill hole number 3 imminently as per: https://www.rns-pdf.londonstockexchange.com/rns/7650I_1-2020-12-15.pdf
"· The rig will now be set up to drill the third hole of the programme across the mineralised porphyry system to define the width and grade of the zone higher in the system."
Ref: https://www.lse.co.uk/rns/XTR/bushranger-drilling-programme-progress-update-nqnwkp37h3kb0j3.html
Apologies if you felt left out CE, believe me when I say it was for the right reasons.. fair to say I've always respected your input here and indeed, I can't think of a time we've had cross words.
Very much looking forward to sharing the ongoing XTR journey with yourself and other investors.
As an aside, if anyone is new here and struggling with research feel free to ask questions and I'll do my best (as I'm sure other shareholders will) to provide links to research/notes etc so you can investigate the company and its various projects yourself.
Nb. I'm more knowledgable about Manica than our new ventures so I can likely be more help with that project in particular - feel free to ask if there's any questions.
Cheers all, have a good weekend!