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Let's not forget, KAT is only half of this project. The other half is Blyvoor and as far as I can tell, they have a pretty solid record.
So Blyvoor has a strong background.
Graham Briggs has a strong background.
LC doesn't.
A rising tide lifts all boats.
As long as Blyvoor and GB do their job right, LC can't wreck this up too badly.
Katoro Gold plc ('Katoro' or the 'Company')
SANDERSON CLN CONVERSION
Katoro Gold plc (AIM: KAT), the AIM listed gold and nickel exploration and development company, announces that, further to its announcement of 25 February 2020, it has received notification from Sanderson Capital Partners Ltd ('Sanderson') that it has elected to convert the full remaining balance of £300,000 due pursuant to the Sanderson convertible loan note ('Sanderson CLN') at a conversion price of 1.5 pence. As a result, the Company will issue Sanderson with 20,000,000 new ordinary shares of 1 pence each in the Company ('Ordinary Shares') ('Conversion Shares') and following the conversion, the Sanderson CLN will have been fully paid up and settled with no outstanding balance remaining.
Admission and Total Voting Rights
Application will be made for the Conversion Shares to be admitted to trading on AIM, and dealings are expected to commence on or around 10 March 2020 ('Admission'). Following Admission, the share capital of the Company will comprise 211,022,129 Ordinary Shares.
Each Ordinary Share has one voting right and no Ordinary Shares are held in treasury. Accordingly, the total number of voting rights will be 211,022,129 and this figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Katoro under the FCA's Disclosure Guidance and Transparency Rules.
Following the issue of the Conversion Shares and Admission, Kibo Energy PLC will be interested in, in aggregate, 96,138,738 Ordinary Shares representing approximately 45.56% of the Company's then issued share capital, and Sanderson will be interested in 20,000,000 Ordinary Shares representing approximately 9.48% of the Company's then issued share capital.
Copied from advfn.
I don't have premium on here so either post it publicly or PM me on that site; my username is the same.
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If you have tried to contact the BOD over the last three months, please compile documentation of your efforts and PM it to me.
For phone calls: Date, time, company you called, who you spoke to.
For emails: Date, time, email address you sent it to, subject line, and whether you've had a response or not.
For any other form of communication, as much relevant information as you can provide.
Note, I'm not just looking for people who have had no response; if you have had a response, please share that too.
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I'll repeat the above post over on LSE, and keep posting it until the end of the week.
Over the weekend, I'll compile all the responses and put something together to send to:
- FCA
- Brokers
- NOMAD
- Board of Directors
If anyone wants to volunteer with the contents of that email, PM me your suggestions and I'll work with you on drafting it up before sending it.
There absolutely is money to be made in property, for me it's the family business and I intend to scale it up massively over the next few years.
My point of view though is that money tied up in brick and mortar is not doing you any benefit. Your property value will continue to rise regardless of whether or not it's mortgaged.
Take a £300k house for example. Even if you mortgaged it for 50% LTV, that would give you £150k cash in hand.
If you can return more in investment profit than the 2-3% interest that the £150k would cost you, your overall wealth has grown from two perspectives: your gain on the investment, and the increase in your property value.
Let's say you took that £150k loan from the bank and made 10% on your investments with it over the course of the year. You now have £165k. At 3% interest, the loan has cost you £4500, leaving you with a net profit of £11500. And you still own the house.
The way I see it, if you:
- Have an income that covers the repayments and your living expenses
- Enough cash to survive 6-12 months without that income
- The confidence and competence to generate better % returns than what you pay on interest
Then you should use that money as a salary advance rather than paying off the mortgage.
People will spend years working their backsides off in someone else's business to clear the mortgage, and then continue working in someone else's business to "save" enough money to invest/retire/etc.
Just invest the money to start with.
This is a point of view I cannot comprehend. If you're financially stable enough to be capable of paying down the mortgage, you have absolutely nothing to gain from doing so.
Your home is not an asset, it's a liability: it costs you money and makes you nothing.
As a couple of you are saying, you wish you hadn't paid it down because now you can't use that cash to make investments to increase your wealth, it's tied up in an "asset" that you have to pay to maintain.
If you're at risk of losing your home because you're not keeping up with repayments, absolute number one priority should be to fix that, not make speculative investments on the stock market.
But if you have a stable income and a pot of cash that will last you 6-12 months if you suddenly lost your job, paying down the mortgage is one of the least optimal financial decisions you could make.
Vauch, I haven't checked advfn yet this morning (or for the last few days) but if it hasn't been suggested already there, rmart has a pretty decent view of how much stock is held by BB users.
Within my family, I think we hold about 1.5 - 2% and would support calling an EGM.
In general though, I know I've been hoping for news soon, but now I think I'd prefer a delay until this whole Covid-19 issue is resolved. The last thing I'd want is to get a massively positive RNS in the middle of a major global sell off and for the market to barely even notice.
I got in at some point around the low 300s and then got out again in a profit not long after (can't remember the exact figures and the HL app is running terribly slow today).
Saw the drop this morning and wondered what happened.... Absolutely nothing?
Adding to my watchlist again. The way I see it, once this covid-19 issue passes and money starts coming back into the market, we should be right back into mid to high 400s
Next time you contact them, can you also ask if the BOD are currently legally able to buy shares?
(If the answer is no, that suggests they actually are sitting on information that would materially impact the share price if released)
He's not playing around any more.
Smacks, I am chilled mate and I'm confident that we'll all make a lot of money here (otherwise I wouldn't be in). My comments on the RNS and potential dilution were "thinking aloud" with my initial thoughts. Overall, I think that with GB onboard, we're good for gold.
Sonic - it's less about the absolute value and more to do with consequence of failure. I did point out that the scale of funding and the project are worlds apart in my comments. SXX failed to fund the project and the company is on the brink of collapse.
I believe KAT will get the funding sorted with ease - better economics of the deal, smaller amount of funds needed, lower risk etc - but if for any reason they don't, then we obviously won't get returns we're all looking for here.
Smacks, subject to funding, I absolutely agree.
At the moment, I see the 3-6p range as being fair value because of the finance risk.
I've drawn parallels to SXX before, because a lot of PIs was lead to believe that finance shouldn't be too difficult, and it turned out to be what sunk the company and cost a lot of people their life savings.
Now I fully recognise that this project that KAT is running is a fraction of the scale - not even 10% of the amount of money that SXX was trying to raise, and the complexity is on a totally different scale too; KAT is simply processing tailings whereas SXX was trying to sink a huge mine.
I got lucky on SXX, insofar as I only lost about 75%. But this time, I'm being cautiously optimistic.
Yes, the upside potential is astronomical here. IF, AND ONLY IF, the finance comes through.
Initial thoughts
- That interest rate is savage.... 1.6% per month is bridging loan rates
- A little bit of dilution already. A total of 12.5% dilution isn't too bad especially if it's the catalyst to making the project viable and therefore a major re-rate.
- I think I like that they've already planning to convert some into equity, but it depends on what they're planning to do with it... if they try to sell it all at current prices, they'd actually recover £166k of the £400k they've loaned, but I'd hope that they'd wait for 6p (at that point, they'd recover the full 400k from just that £100k worth of shares and that would be an absolute masterstroke for them).
- I don't like that Sanderson can convert at any time at their "sole election", but there's nothing to state that KAT can choose to pay off the entire loan at any time at KAT's sole election.
- I also don't like that on 16th Feb 2021, Sanderson could potentially elect to convert all their shares at 1.5p, but on the 17th it would become 90% of the 10 day VWAP. If the SP is significantly higher than where it is today next Feb, it would be far less dilutive if it VWAP than the fixed price. I would have much preferred it to switch to VWAP from 3 or 6 months prior to the end of the loan term.
Read the full RNS. Still need to digest all the information and its implications, but some key points:
- In line with the CLN, the Sanderson CLN will accrue interest at 20% per annum on a daily basis, and the principal plus accrued interest is repayable in full on or before 24 February 2021.
- The Sanderson CLN is convertible into Ordinary Shares at a conversion price of 1.5 pence (being a slight premium to the conversion price of the CLN's of 1.4 pence) at any time prior to repayment and/or 17 February 2021
- Sanderson has elected to immediately convert an initial £100,000 of the £400,000 drawn under the Sanderson CLN at the conversion price of 1.5 pence, and as a result the Company will issue Sanderson with 6,666,667 new Ordinary Shares ('Conversion Shares').
- For illustrative purposes only, if Sanderson sought conversion of the Remaining Balance of the Sanderson CLN in full on 17 February 2021 ... then the Company would issue 23,945,205 new Ordinary Shares, representing approximately 12.54% of the Company's issued share capital of 191,022,129 shares after taking into account the Conversion Shares.
- Application will be made for the Conversion Shares to be admitted to trading on AIM, and dealings are expected to commence on or around 2 March 2020 ('Admission'). Following Admission, the share capital of the Company will comprise 191,022,129 Ordinary Shares.
- Following the issue of the Conversion Shares and Admission, Kibo Energy PLC will be interested in, in aggregate, 96,138,738 Ordinary Shares representing approximately 50.33% of the Company's then issued share capital, and Sanderson will be interested in 6,666,667 Ordinary Shares representing approximately 3.49% of the Company's then issued share capital.