Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Jpp,
Egm on Monday has 9 resolutions, all to do with the name change, approval of the lithium play acquisition, approval of the placing shares, and the share based payment to bacanora’s, and also for the divestment of shares in Erris gold resources to Erris resources existing shareholders.
Effective immediately after the proposals are voted on. (So Erris shares will be replaced by zinnwald shares from Tuesday onwards if all the proposals are approved..)
L.
L.
LC has done nothing except overshadow continued shareholder dilution, and destruction of shareholder value, whilst trousering 200k a year combined from kibo and Kat, when these companies can ill afford to pay that obscene level of wages.
Raises funds to fund his own salary.
Wouldn’t surprise me that when the power company splits off, he will put himself on the board of that as a salaried director....
It is an absolute disgrace that this man remains in charge of these companies taking out that kind of money from these companies...
L.
Rajbury,
Thanks for this.
I’ll give them a call tomorrow
Rgds
L.
Doorstop,
Can you post the HL phone number you used. I can’t seem to find one for them. Looks like they ave hidden it from their website . My only option at the moment seems to be emailing them which is annoying...
L.
Erris shares change to zinnwald lithium, and should remain in the isa.
Erris gold resources shares will prob have to go into a regular trading account. If you don’t have one with your broker, speak to them about setting one up.
L
Erris gold resources ltd is a subsidiary of Erris Resources Plc.
The egm proposals effectively propose to issue 38836787 shares in Erris gold resources ltd to the Erris Resources Plc shareholders on the register at the ex date.
Initially the shares will be unlisted so if you have your Erris resources shares in a nominee account. You’ll likely find that they’ll appear in your account with an unlisted or similar status.
If you have them in a SIPP or isa, make sure you have spoken with your broker to have a regular trading account opened with them, so that the broker can hold them in that account. (Actually not sure about a sipp - I still need to check that one).
But having spoken with the mgt team at Erris, I’m confident that they will realise their intentions of finding a route back to market for the Erris gold resources company in the not too distant future..
L.
Tricky one.
My personal opinion is that today and tomorrow is likely to see big rises as people buy in for the free gold shares.
I have longer term targets in mind though based on the quality of the lithium project which I just don’t think anyone has got their head around the real value here.
Long term target post egm £1 per share ( pie in the sky maybe - but is £200 million market cap so far fetched for such a project? Especially so close to production?). Nearer term aspirational target of 50p per share, shorter term fairer value target of around the 25p Mark..
L.
That should have said zinnwald is the most advanced project....
L.
I think people are only just starting to wake up to what a blinding deal Erris have pulled off.
In effect they’ve paid notionally £4.5 million (90 million shares at a notional,5p per share) for a 50%interest inaproject with a npv of €428 million, and ebitda of €58 million a year for 30 years,
With a paltry €159 million capital,cost.
Net they’ve paid about the equivalent of £3.5 million for it, as they’re getting €1.35 mln euros as part of the deal.
Also, out of cadence minerals, savannah resources, and even Bacanora’ssonorra lithium project (Which admittedly I think is about 10 times the size of zinnwald, ), is the most advanced stage project as it already has a completed dfs. The other projects are still developing their dfs.....
Further the other 50% is held by a company that has been in administration since 2017. So there is the potential to acquire this 50% for a decent price too....
L
Goof news., I meant good news
Lol
L
And, the consensus is that this is goof news.
Essentially, Erris is transforming from a small, highly risky early stage exploration play, into a much bigger short/medium term producer of a resource that is expected to become massively in demand in the next 30 years.
On top of that, you have a quality board that knows how to manage finances, and who were instrumental in securing a $325 senior debt facility for another resource project very recently (Jeremy Martin is also involved with Horizonte minerals), and between him and Dave hall , secured said facility, which stands us in good stead for this project.
Further, one of the new shareholders who took part in the placing is a guy called Henry maxey who put in £1.5 million of his own money, so just under half of the placing. Henry maxey is the chief investment officer of ruffer investments, who historically have had a stellar investment record.
This guy knows what he”s doing. He doesn’t tend to back losing projects.....
Also, Bacanora can’t sell their stake for at least 12 months, and I have heard, though I have yet to see this in writing formally anywhere that some of the placees have give similar undertakings (don’t quote me as I could be wrong on that, but it is a rumour that I’ve heard).
This is even better for shareholders because it means that the bulk of the new shares coming into the market as part of this new company, can’t or won’t be traded, so the free float won’t be that much bigger than it currently is.
Free float, is roughly 19 million shares (about half of the current Erris shares, plus around I believe about half of the new placing shares, so about another 30-35 million. The rest are all held by long term backers/investors...
This should help the sp maintain a stable footing post the egm.
At the moment, the sp is motoring because the free float is shrinking massively. 45% of them are held between 4 shareholders, plus a range of other hnwi /long term investors who have signficant shareholder invis, but just under the 3% threshold so they do not have to be reported to the market, and because people are buying in in order to qualify for the free shares in Erris gold resources...
L.
Apologies, his was meant for mymy
Rgds
L.
Rajbury,
Subject to Erris shareholder approval next Monday, Erris have agreed a deal with Bacanora lithium to acquire deutsche lithium which holds 50% of the zinnwald lithium project (or 50% of deutsche lithium) . I forget which without checking the admission doc again. It doesn’t matter either way particularly for the purposes of your question.
In exchange for this, Erris are issuing roughly 90 million shares in Erris to Bacanora as consideration for the project. Additionally, Bacanora are giving to Erris €1.35 million euros, as well as the zinnwald lithium project team. The cash was bacanora’s obligation under an agreement it had with solar world who own the other half of the zinnwald project, in. Order to continue the remaining development steps for the next 15-24 months, which should just about bring the project up to a point where they can get it into production (for which financing at a project level of around €159 million euros will be needed to cover the mining/processing infrastructure etc.
Additionally, Erris have just completed a placing at 5p per share, to raise £3.75 million - so another 75 million shares, also subject to approval at the egm.
In total, Erris will have around 204 million shares in issue after the egm.
At the egm, the proposals also include one to change Erris name to zinnwald lithium Plc, and all the issued shares will in effect be replaced by equivalent shares in this new zinnwald lithium company.
Now, Erris up to this point has 38,836787 shares in issue, and at this time is primarily a resource exploration company, and have as at end of last year signed up for an 80% earn-in option agreement with green ore gold ltd, who own exploration rights over highly prospective land in Scotland. The earn in kicks in automatically if Erris successfully produces a jorc compliant estimate of gold of 250,000 oz or more over that land.
The consensus view amongst various people who have history and knowledge of that land believe there is confidence of finding signficant commercially. Viable grade subsurface gold mineralisation up there, and therefore the board determined that this project should not be diluted by the new shareholders joining Erris for the lithium play, and hence the Scottish gold project which rather neatly is actually held by a subsidiary of Erris, called ERRIS gold resources ltd, should be of benefit only to the existing shareholders of Erris (ie those that own some of the current 38,836,787 shares in Erris). So, also as part of the proposals, the existing shareholders in Erris will also receive on a 1 for. 1 basis, share certificates in Erris gold resources ltd which post egm will be an unlisted company, with €400k cash injection from Erris to continue their exploration work.
Their intention is to find a route back to market in the not too distant future.
Dave hall/aiden levelle will go with Erris gold resources, and Anton du plessis and Jeremy Martin will stay with Erris (soon to be zin
if want the deal to go through, remember to send your broker your proxy voting instructions.
Egm proposals are in the admission doc on the Erris website
L
I would have done, but they were putting their pre money valuation at what I thought was quite a pricy level.
Up to 3 years before they list...
Still, one to watch.
L.
It’s interesting that even though there have clearly been some decent sized sells, that the price has continued to rise.....
So, maybe some of those “sells” were buys maybe?
The advertised bid/offer for eris has traditionally been wider of what you can actually achieve, so it makes it more difficult to determine with 100% accuracy whether each trade is a buy or sell
Still, upwards is the right direction ... :)
L.
Not sure tbh. It may just have the quantity of shares with a zero value as they’re unlisted, or it may show a value based on the nominal value of the share itself.
I’ll have to do same for hl myself actually.
Anyone know what happens to the EGR shares if you have the Erris shares in a SIPP? Same thing I’m hoping as if you had em in an isa?
L.
Share certificates will go out to all the registered shareholders on the register at the ex date.
So, if you have shares in a nominee brokerage account like lloyds, Hargreaves, barclays, etc etc, it will be those brokerages that will receive the paper shares. They will then assign the beneficial ownership to each nominee account that has purchased Erris shares.
If you only have an isa account with any of these brokers, you might want to get in contact with them, as they would I believe normally asssign unlisted stock to a regular trading account in your name, but you’d want to make sure of that by talking to them beforehand.
In the admission doc on the Erris website, it also contains the 9 proposals that will be put before the egm for voting on. I’d also suggest contacting your nominee broker if you have your shares with them, to advise them of this, and I’d also peruse the proposals, and decide which way you want to vote on them, and the speak to yo brokerage and go e them your proxy instruction based on your holding against each proposal, so that they can send off your instructions to Erris share registrar on your behalf.
Rgds
L.
I’ve added more this morning
L
Calibre not calibration
L.