Member Info for Legalwolf

I really feel for holders here. Really being put through an ordeal here and RM needs to step up with some explanations imho.

You all make fair points. I don't take issue with any of them. Does anyone know from experience how long a TSX approval is likely to take? The rest of the conditions I'm less concerned with as they mostly appear to be documentary due diligence checks.

So the legal action will have commenced months before Feb 2024, in order for judgment to be delivered by that date? Anyway, main issue remains whether and when this is ever going to relist.

Very difficult to believe that this ongoing delay is simply down to PKF. It's now coming up to a year since the suspension and we still don't have audited accounts for June 2023. Are PKF really taking this long to complete the audit because of their own resourcing issues? Is this still credible?

PP - not missed out, but actually made decent profits at OMI in recent months. I bought in the 2s and sold in the 5s and upper 4s. Sold and went negative in more recent months because of the overpromising by BG about this Anza deal, and there is a clear placing risk over there, more so because of the delay. But I like the project and its as good as any gold project on AIM for generating excitement.

Didn't realise you were in until I saw you posted on there. Are you planning a LTH or a quick trade?

If I was confident that the placing will only come after the Pepas drilling, I would totally agree with you and would likely have bought in before today's RNS. I've also considered whether to just buy some now, and then add in the future, either as part of a fund raise, or at higher levels if there is no fund raise, i.e. average into a position.

My only issue with today's announcement and adopting that strategy is that I do think it's going to take MUCH longer than many think for this deal to be "concluded". Within the RNS you have the following, which doesn't sound like a quick process to me:

"Completion of the Acquisition is subject to a number of conditions including, representations and warranties being true and correct on closing, compliance with covenants, delivery of financial statements of MMA, the approval of the TSXV (including shareholder approval if required by the TSXV), registration of the pledge agreement and no orders of a governmental body prohibiting consummation of the transaction."

This could be a quick process and over in weeks, or it could end up taking a few months, and will definitely take months if a shareholder approval is needed.

No the same can't be said for any share! For example, it can't be said for AIM shares that have just come out of a capital raise (and cleared any resulting overhang). Usually, that's a good time to buy, as finances are sorted and you can focus on operations - unless it's a risky O&G drill coming up!

BTW - not saying that there definitely will be a raise before drilling, as only OMI can confirm. But the cash position is not great, we all know that. So the risk/issue is worthy of discussion on what is, after all, a BB for debate and discussion.

It will put many off, and so if there are not plans to raise ahead of Pepas, then it would be good to get that confirmed. All imo and dyor

"Yes, absolutely, but that is always Legal's concern, regardless of the other detail."

And there is a very simple and obvious reason, indeed truth, for this, which is that these other details don't matter. A raise is usually done at a discount, and no amount of positives prevent this. Therefore, when it comes to AIM shares, the first and primary consideration for me is always the cash position. First finances, then operations. Never the other way round!

I make no apologies for it, because in the past, when I have gone in head first because of the positives with the projects, only to then have my holding significantly undercut by a capital raise, it has rarely ended well for me.

Let me put it to you this way: If we became aware that OMI was planning to issue a capital raise RNS on Friday, how many folk would buy ahead of that because there are all these positives? Then compare that to how many folk who would trade out before the placing RNS landed?

So, there are no positives in buying something just ahead of a discounted raise, but if you think that's a winning investment approach, then good for you!

I would like to hear more from BG as to what happens next. The cash position remains a MAJOR concern for me. Any raise prior to drilling will take the share price right back down. So is it a case of selling into this rise, before the cash call comes?

How are folk playing this? A short term trade, get the raise over, and then pile in again?

I would much prefer OMI to do a substantial raise, which will leave it fully funded for the next two drilling campaigns, and buys it some time to find a new partner for Anza. 800metres is nothing really, and almost tokenistic, and won't be anywhere near enough to sustain any rise.

But to fund two drilling campaigns in remote Columbia, what are we talking? Can it be done for a few million or does it need much deeper pockets to come in and do the heavy financial lifting?

JC - do we know when this legal action commenced. All we have is a court decision from July 2024, but the action will have commenced before then and so might well fit into the period of the audit. I appreciate that the fact of legal action does not prevent an audit sign off, but when that action, or any series of actions have the potential to materially affect the business as a going concern, then the position might be different. I pose this scenario generally rather than suggesting it is the case with GCAT.

Dr R - "special comms" was a reference to BG replying to a select few holders. Anyway, I'm glad that some positive news has landed for the patient holders here. I have no wish to rain on the parade. I still need the order of events or cash position to be clearer before I would consider a longer term or all in investment here, as opposed to a trading opportunity.

But a step in the right direction today and GLA.

😀😀😀😀😀😀

I won't be clogging up the BB. I've said pretty much all I can usefully say, and respect that others might disagree with my reading of the situation. I wish everyone the best with their investments here (and elsewhere). MATD will remain on my watchlist, I will be keeping a close eye on it and will lookout for the RNS. GLA

That's old news. Doesn't mean drilling contractors will be hired or that drilling will commence until the deal is concluded - assuming finances are in place.

AGM presentation is on the website, but at a glance, doesn't reveal anything new.

I think that's a reasonable summary. We need a RNS in the next month to confirm Heron 1 production (highly unlikely imho) failing which its leaving yourselves to the mercy of the drilling results.

I think I would rather wait it out rather than take the risk, regardless of whether the share price goes down to 2p or up to 3p. But I rarely wait for O&G drill results, or like investing ahead of them. (I have a small position in CHAR, which is an appraisal drill, and even that is giving me some nerves.)

But everyone's risk tolerance and portfolio situation is different, and this is not an exercise in synchronised swimming, and so we are all allowed to swim off in different directions. GLA

Dr R - from the RNS. They surely aren't going to drill until the transaction has been closed? Have you had special comms to suggest otherwise?

But nothing in that RNS that even comes close to suggesting that production will start any time soon. If it were otherwise, it would have been a lot more upbeat and the market reaction would not have been poor.

So basically it's now a case of deciding how confident you feel about these drill results, because they are going to land first and next. I'm not surprised that folk are bailing out and re-assessing, as poor O&G drilling results usually cause a big drop in the share price, and there is nothing to be gained by taking this risk, especially when the share price is giving no FOMO or reason not to either.

I said this several weeks ago - before knowing Heron 1 production would be delayed - and so it's not a late thesis for the purpose of lower entry. I just don't see the point of taking an entry just before high risk drill results. But each to their own.

If you read the actual wording of the RNS, the PC deal appears to be just as big an issue as the construction permit. I'm concerned by the language used in the RNS, because it doesn't given any sense of imminent production. For example, take the following from the RNS:

"Negotiations with PetroChina and industry regulator (MRPAM)... are progressing and Petro Matad has been invited by PetroChina to meet at its Block XIX facilities to review the logistical options."

"We are encouraged by the progress of discussions on cooperation with PetroChina and we are pushing for the final approval on the Heron-1 construction permit which we don't expect to take much longer."

To read "encouraged by progress" at this late stage does make you wonder wth is actually going on with this deal. Are they close to reaching an agreement, why is it taking so long, are PC changing the previously agreed terms, etc?

Can any auditor sign off an audit whilst there are outstanding legal cases against the company and hence outstanding financial liabilities? Likewise, and separately, the regulator relisting a company in these circs?

It is hard to believe that this is all about PKF causing delay to the audit, as there appears to be a lot more going on. Hopefully other creditors are not getting itchy feet, seeing some creditors taking legal action already and starting to claim on GCAT's assets. Really not good at all this. All imo and dyor