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Some good points.
I guess the important thing is for the other 50% to be in demand. And I guess we won’t know until something happens.
L.
Unlikely. Plus there’s be little point.
It really needs the ownership consolidated so that progress to mining can be accelerated.
Joint or multiple ownership always complicates matters and slows everything down
L.
I imagine they’re in discussions on 2 fronts.
1) debate on tactics for agreeing terms for the remaining 50%, and maybe active negotiations with the administrators of solarworld for the stake,
2) working out how they’ll afford the price which I suspect may involve another cash call for zinnwald, unless they van incorporate it into the project funding, or maybe via issue of shares.
I’d guess the administrators would probably want cash for the 50% though.
So I reckon we could see a placing and/or fundraise before too long
L.
Maybe.
Remember though folks. There are only about 60-65 million shares out of the issued share capital available for trading...
Bacanora, Henry maxey account for around 125 million and are locked in for 12 months.
Pre corporate action, there was roughly 52% in lth’ers hands, inc osisko gold, Dave hall, donaldsons, barclays, and thomas et al which accounted for around 20 mln shares.
I have it on good authority that associates of the donaldsons accounted collectively for around another 4-5% of shares pre corporate action, which is around 1.8 mln or so, and if Henry maxey has taken part in the placing, I’d hazard a guess that associates of his may possibly have taken part in the placing as well.
There’s every chance then that the free float is less than 65 mln, and likely to get lower.....
If supply begins to dry up, and demand remains healthy, I see the sp heading in one direction only......
L.
Testing
Yes EGR developments could be interesting. I had a zoom call a few days ago with Dave hall and aiden. They seem very pleased with what they’re finding. Numerous veins being discovered in boulders in the area. Boulders seemingly a better indication of sub/near surface mineralisation than soil sampling alone.
Sounds like they’re planning for expansion of their field teams up there, and possible further pre-ipo fund raises as well. Very high risk, but I think will offer an opportunity for existing shareholders to increase their slices of pie very very cheaply, ahead of a return to market next year.
Also sounds like they are mulling a main market listing vs AIM, which would I think be a real bonus.
L.
I have received an email from Barclays corporate actions guys yesterday saying that they had received the EGR share certificates and that they would be processing them against the relevant client accounts from today.
I’d therefore check your accounts on Monday to see if they’ve been updated.
Additionally, I’m waiting on written confirmation, but when I spoke to them, they indicated that they thought any shares held in an ISA which qualified for the EGR distribution would also be added to those ISA’s.
That would be great news if they could remain in ISA’s, but as I say, I’m waiting on conf8mation of that from Barclays.
L.
I’ve emailed hl, and they responded saying they were aware of it, but we’re waiting on receipt of the share certs from the Irish registrar
L
Volumes of trade are similar to prior to the handover. Don’t believe there is a sudden rush to sell 5e shares...
L.
I highly doubt znwd will do anything with Cornish lithium , at least not yet.
Cornish in my opinion is way over valued given its current state of development. Sadly, too many people were willing to buy into it, pretty much at any price. Their last fund raising effectively valued the company at around the 40 million mark (albeit this may be aussie dollars). Even so, at this stage of their development, that’s expensive.
I’ve not seen anything like a properly estimated jorc compliant resource calc for the deposits they’re investigating, so I think they tried to cash in on the lithium fever that’s budiling.
I almost took part in the latest placing until I saw some of their responses to questions about how they arrived at the sp hey were offering shares at....
Don’t get me wrong, I think there is a possibility of there being a potentially good deposit that they can mine, but i think they’re at too early a stage at This point, for the valuation they’re trying to attribute to their company
Znwd on the other hand already has a completed DFS, with a strong mgt team in place who have already demonstrated an ability to secure large senior debt funding
L.
L..
Lexaris, cw1972, who are your brokers if you don’t mind me asking?
Cheers
L.
If you have a regular trading account with II, then they should declare your allocation of ERRIS GOLD RESOURCES shares in that account, with a status of unlisted or non-tradeable or something similar.
L.
Yes, I have zinnwald showing up in my HL account, sans EGR shares, as with yourself.
L.
In case people haven’t appreciated this.
Erris had an effective free float of around 50% of the total shares in issue, which translates to around 19 million or so shares (over 45% held between top 5 holders... Dave hall, osisko, barclays, donaldsons, and r thomas.
Since the change to zinnwald, 165 million additional shares have now come onto the market (as zinnwald shares of course).
Of those the 90 million or so of bacanora’s are untradeable for 12 months.
Of the 75 million placing shares, my understanding is that Henry maxey who has 30 million of those has also given a similar undertaking not to trade them for 12 months also.
So, the effective free float of zinnwald is now 19 million from the Erris days, plus the 45 million remaining from the placing.
Now, clearly some of those holders will be looking to trade and cash in on early gains, but as we’ve seem from the trading volume, this remains relatively light, so although it’s true to say a lot of shares have now come onto the market at the 5p placing price, and notional 5p valuation (ie Bacanora stake), the situation regards free float is a little more complex, and is considerably less than the total shares in issue at present.
L.
I’d be interested to hear from holders of Erris resources, as to whether the new zinnwald lithium shares have shown up in their accounts yet, and which brokers they are currently using.
Most of mine are through barclays smaRtinvestor, and mine haven’t shown up yet (still listed as Erris Resources).
Contacting barclays, they reckon they’re still waiting on info from Erris, which strikes me as bull****, but I can’t prove it...
L.
Ballers, which brokerage do you use?
L
If your erris resources shares are held by a broker, in effect in a nominee account, then the shares will go to your broker since it will be your brokers name on the share register. The broker should then record your beneficial interest agains your account, as an unlisted stock.
If you hold the shares directly in your name, then the share Certificates will be posted to the address on the share register associated with your name.
If your account is an ISA, then those shares will go to the ISA broker, and you will need to open a normal trading account with your broker so that they can record those shares for you in it.
Not sure about SIPPS though...
Rgds
L.
Barclays shares were acquired in the open market, and were definitely NOT part of the new placing.
The new placing shares couldn’t come into effect into the earliest of the egm date since it was dependent upon shareholder approval.
L.
Yep, my bad
L.