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80% of the asset.
this is still a bit of a climb down from the original proposal which was to rto ngm into mila which would have given the rto'ed entity all of ngm's assets.....
and the initial consideration loan elements had effective conversion prices of 1.94p and 1.8p effectviely, so it wouldnt be surprising unless they have a lock in condition to see some of the sales recently could be from those entities who owned the original loan agreements.....
l.
£2,812,500 by way of issuing 83,543,197 new Ordinary Shares at a price of £0.024 per Ordinary Share in the Company (the “Initial Consideration Shares”) to TPE, £300,000 in cash consideration, by allotting and issuing 15,448,370 new Ordinary Shares to Diversified Minerals Pty Ltd (“DM”) pursuant to the DM Loan Agreement, and by novating the £229,393 Series 3 Loan Notes from NGM to the Company which will convert to 12,744,032 new Ordinary Shares on Readmission. On Readmission, the Company will list the Initial Consideration Shares and the Ordinary Shares issued pursuant to the Series 3 Loan Notes and the DM Loan Agreement.
total consideration - £2,812,500 comprised of 3 elements:
1) 83,543,197 new Ordinary Shares at a price of £0.024 - this amounts to £2,005,037
2) £300,000 in cash consideration, by allotting and issuing 15,448,370 new Ordinary Shares to Diversified Minerals Pty Ltd (“DM”) pursuant to the DM Loan Agreement - so total - £300k
3) £229,393 Series 3 Loan Notes from NGM to the Company which will convert to 12,744,032 new Ordinary Shares on Readmission - total - £229,393
total cash value from the 3 items by my calcs comes to £2,534,430
so where does the other (£2812,500-£2534,430) - £278k roughly come from?
what am i missing here?
L
r #edwards increases his holding 5* (1 mil to 5.7 mil) thouhg his %age holding diluted to 1.87% from pre-suspension 4% holding
so basically he's put another £113k in to the company
L.
and another buy to start the mornng off with
l...
Yep, I’ve just bought a shedload, not shown up yet either....
Assuming there’s nothing more sinister that’s been held back, seem like a total overreaction to me. Great buying opportunity....
L.
Added quite a few today...
L
Hmm, I think I’d still like to see the company just clarify how they arrive at that figure.
$1.5 million in additional revenue off 3500 subscribers is $2.74 per subscriber, per week. So is that on top of the $1 per week that subscribers are charged (Ie “additional revenue”) or is the $1 per week, per subscriber part of the $1.5 million in revenue? For instance have they noted an average of $2.74 per user , per week spend during august on top of the $1 per week basic charge,, and they’re extrapolating that?
I’d just like a bit more clarity around this...
L.
It will be interesting to see what happens here.
Baccanora received the Znwd shares in November 2020. They are subject to a 12 month lock in period. So, a) what is the timeline now for the baccanora sale to ganfeng?
B) when the shares are distributed, are the recipient shareholders subject to the same lock in ( Ie can’t sell them until November 2021?
Does this have any impact on any supposed forward sell?.
I could see ganfeng maybe selling the shares they receive ( circa 27 million or so), but I’m not certain all the other shareholders will just line up to sell. After all, they bought stock in a lithium company. After the baccanora sale, they’ll still have shares in (albeit a different one) a lithium company.....
L.
Interesting your take on bradda Malik. Essentially I agree with your view.
I think bradda has huge potential in the longer run,but it’s at a much earlier stage than zinnwald, and I also agree it’s probably a little pricey at the moment.
I was hoping for a drop down below it’s ipo price, as I’d be looking to take a good stake in it should that occur.
It’s just positive e sentiment in the lithium space that’s feeling the demand for its shares in my view.
Looking forward to zinnwald’s next piece of major news - either securing the capex debt facility, or signficant progress on the post dfs work streams , and/or exploration update on its new licences, or maybe even an off take agreement or two.....
L.
I don’t believe for a second that Anton and Jeremy Martin became involved in this project, merely to be satisfied with just this project, either through to production, or to sell out to a takeover bid.
I get the distinct impression that they have larger aspirational goals for zinnwald...
I think we’ve seen the first step along that road with the additional exploration licences...
Just my opinion of course...
L
Ganfeng don’t own anything of zinnwald yet. Bacanora takeover is likely to be several months away, and will still be subject to more votes before being g finalised. Also, things might change at bacanora to increase its own valuation above 67p before then as well, whichcould delay things further for ganfeng..
L.
Phoebus,
An interesting header for your post. But notwithstanding that, it is pertinent to debate such points.
On the one hand, the mkt cap has certainly increased dramatically since the announcement, this is true. On the other, you now have quite a reasonably large advanced stage lithium project in the heart of the industrial landscape in Germany, a very stable Central European region, now 100% owned by an up and coming company with a strong mgt team that also has pedigree. Jeremy Martin is one of. 2 guys responsible for securing the $325 million senior debt facility over at Horizonte minerals for their nickel project. Anton du plessis has a very long history in the banking/finance sectors.
Valuations for 100% owned projects tend to have much higher valuations applied compared to companies who only have part ownership. Great land gold for example is one extreme example of this.
Further (and I’ll have to double check this), I’d expect the dfs valuations of the project to be rebased at some point so they’re more in line with current lithium prices which I’m pretty sure are significantly higher now than when that dfs was put together.
So, it’s no surprise at all to me that the sp is motoring, and likely to continue much higher now that the ownership issues is settled.
The maths will either support current / future valuations, but right now, I think the stock is being driven more by sentiment than fundamentals ( though my personal opinion is that Znwd is still well undervalued even at these levels, especially when compared with peers).
L
If I were zinnwald, I think I’d be looking at doing a fund raise of somewhere between £5 and
£10 million.
If they offered shares at say 18p , they could potentially raise up to say £10 million, and still only have to offer around another 55 million shares, which wouldn’t be overly dilutive, and would give them huge financial firepower to develop the main asset, explore the new one, and also acquire other assets, plus give themselves considerable protection against low ball take out offers.
Now that the mkt cap is heading above £50 million, they are more likely to come onto the radar of larger institutional funds...
Thoughts anyone?
L
Ganfeng I think hold find it a lot harder to get hold of zinnwald compared to bacanora.
Their current holding has been significantly diluted down from the 44% they had now with the new shares in issue.
And I wouldn’t bank on the new shareholders agreeing to a low ball offer either.
Some of the original shareholders from the Erris days were in at 25p per share. I highly doubt they will sell out to a low ball offer given zinnwald’s future prospects.
L.