AGM Notes - Credit : kdickson ADVFN5 Sep 2023 17:02
AGM Notes
Very first/original funder ticked all boxes but changed mind when it came down to it.
The more recent funder, for the Greenfield JV 'free carry' option, decided to take a sideways step in March but to potentially come back to table in October.
Hence latest focus on RB bond funding which is difficult to do, especially to fund the amounts TOM are asking for. Lots of companies say they can set it up (but then its a marketing excercise to try & raise the funds). It's taken 6 months to get comfortable with the entity they've decided to work with and their ability to actually get it funded.
The entity is a private listed bond and the funds are provided internally. Proven record on much larger bonds. They only do 4 or 5 per year and takes 3 months to put one together. Need to fit in with their timetable.
The entity have already approved the RB funding as the basis for the financial instrument/bond. Financial model (Zac) and other things still to be worked This is the main/only funding route being worked on (unless other funder returns for discussions in Oct).
The process will kick of properly mid Sept. We'll know by end of Oct [if successful]. Won't have the funds until end of the year.
Either way, we will definitely know whether we are funded (or not) by year end.
Zac: Traditional funding for oil and gas/natural resources has all but dried up in last 2 years. The NSAI reserves report was key to contextualizing the value of our reserves and how we could leverage our asset to raise funds. (It appears that Zac was all over each offer and their risks vs rewards).
They have 4 or 5 'jackets' open at any one time and board agree "First in, best dressed" (i.e. who gives best structure to maximise returns & minimise risks to shareholders.
Mechanism for gaining traditional funding: When dealing with bank/financial institution, normally get an offer, get a heads of terms, a binding heads of terms, then generally goes to an independent credit committee; like an underwriter (to bind or not to these terms). Once terms are bound, that's when you stop looking (for other funders).
This bond rb route is a 'smaller package' with less layers of checks. The main security (the NSAI reserves report) they look at has been approved. The rest is their internal checks and sign-off.
A requirement of this facility will be to release funds in tranches. First tranche is to buy the TSHII land and then subsequent tranches to complete at least 2 plants.
If we went with the 'free carry' route then buying the land would be seen as a reverse takeover and we'd defnitely have to go back to AIM, but with us physically raising the money to do the completion, that might be avoidable but discussions would still be needed with AIM & Nomad to determine what the process will be. Even if we had to do the work associated with an RTO/relisting then we'd have the 3 months from now to complete that, rather than wait till the funding completes, then find out we n
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