Member Info for Legalwolf

I don't know where they get the additional 3 months runway on that breakdown, and if they run into any problems, then they will need to abandon, because they simply don't have the money to endure any more issues with the Rig.

And they will need to raise again irrespective of what happens, otherwise they won't remain a going concern for much longer. Definitely a boom or bust situation coming up here. If the Rig doesn't shaft them, a duster at Itumbala will for sure. All imo and dyor

It's really hard to believe that they have the chance of making a commercial discovery, because if they did, they would not have had to endure a raise at 0.25p. Tai 3 must be a duster, and I don't know why they are even bothering with Itumbula and wasting more cash, but what else can they do, they are all about Rukwa.

But they are literally spending every penny they have on this next drill. In order to survive as a going concern, they WILL need to raise again.

I don't understand this. They currently have $3.2 million and are raising $7.4 (before expenses). That will leave them with $10.6 million (before expenses). But then look at the cost breakdown they have given for this drilling:

Drilling of Itumbula West-A ($6.1m) - assumes an uninterrupted c.30 day drilling programme with no operational cost overruns.

· Tai-3 outstanding costs ($2.7m)

· Licence fees ($0.3m)

· Estimated cost of fundraise ($0.7m)

· 3 months G&A ($0.8m)

Bloody hell, they really are walking a financial tightrope here and are going to need to raise cash again to survive past this drill? Madness, or have I got the calcs wrong? All imo and dyor

Look at the cost breakdown they have given for this drill. They are spending almost every penny they have on this drill and can't afford any major breakdowns or delay.

It's crazy, even if everything goes to plan with the drill, they will still be out of cash? What will they do then? All imo and dyor

Unbelievable. Truly unbelievable. 0.25p is just criminal. One of the most shocking announcements around.

Even I am truly gobsmacked by this. Only yesterday, I wrote that a placing at 0.25p would be "insane". Never for one second did I think it would be that low. Still shaking my head. And to rub salt, the BOD decide to align themselves by taking only £18k, yet claim to be "optimistic".

So now close to 2.3 billion new shares are going to land. Incredible.

Basket case just taken the biscuit. All imo and dyor

The fund raise will involve issuance of shares. That's why they passed the Resolution. In terms of the fund raise and whether it will involve a placing, much depends on how much He1 need to raise, as against what the funders are seeking here and offering. If they want to flip their shares like traditional placing investors, or offer a CLN type arrangement, then they will be looking for discounted shares. Similarly with any other share subscription based deal. If on the other hand, the they are looking to make a genuine investment into the company because they believe in its prospects, then they might be prepared to pay a premium for those shares.

We simply don't know, but the fall in the share price following the unsolicited approach doesn't leave you with a great deal of confidence of the latter type of investment. All imo and dyor

How can the conditions for a raise improve? If they fail to raise now, and then have to cancel the drilling, then that will tank the share price even more, making it even more difficult to raise funds in the future.

Having said they need to raise and wish to drill, they need to get it over the line now, and take whatever bad deal they are being offered, because that's the situation they have put themselves in. All imo and dyor

No announcement at 11am, as someone had previously suggested. Looks like another day of no news then.

Yes, that is one of the risks - that they RNS to say that they need time to consider their funding options and hence won't be drilling in January, but will make a further announcement in due course. Which is another reason why I think it's best to just wait for the announcement. I mean, it's not like the falling share price is giving any reason not to wait? All imo and dyor

Don't forget that it is common place for successive placings (each at a lower price than the previous one) to go through the same broker(s). So if you have a company where the first raise is at 10p, and you know there will be a need for further raises every 6 months, which in a bearish market will be done at lower prices, than you could make money across these placings, by forward selling/shorting the first placing i.e. having a strategy across the 2 - 3 placings.

Seen so many examples on AIM of successively lower placings that it does make you wonder if forward selling/trading around successive placings has been the bear market tactic for a lot of the big fish?

Just a musing and I might be way off. All imo and dyor

Very ugly bearish looking candles on the chart again today. The buying price is getting lower every few minutes (0.83 to 0.78p just in the last 20 minutes), which again suggests to me that there will be no strong bounce.

Someone, somewhere, must know something, because the selling started on high relative volume again. Whilst I don't believe the 0.25p rumours, maybe the fund raise is at a shockingly low price still, or maybe they are struggling to raise the necessary funds. Or maybe large interests have just taken advantage of the situation from a pre-announced fund raise and there's heavy shorting.

Radio silence from the company as well. Complicity or sign of trouble? All imo and dyor

Getting in ahead of the fundraise announcement is too risky. We don't know whether the drop in the share price has adversely impacted the fund raise negotiations and how much they are able to raise? If so, whether they now can raise enough funds to drill. If they don't have enough funds to drill then the share price will nosedive further. The other risk is this seeming delay in announcing the fund raise. Each day there is no news, is another slow falling knife day, as we are currently seeing.

Ahead of the fundraise, I doubt there will be enough buying to sustain any kind of swing trade that is worth taking the risk on right now. Shocking look chart right now. All imo and dyor

I think as well as the overspend, they have also recalculated the cost of Itumbula upwards to include longer drilling time and contingencies.

If they manage to raise anywhere near £10 million in the current market and based on existing results/prospects I’ll be very surprised indeed. That will be a result!

I meant pre-emption. There’s plenty of pre-emotion.

I think being BVI registered there’s no limit on how many shares they can issue in that there is no concept of maximum shares in issue or requirement for a prospectus.

There is a limit of 300 million though in terms of pre-emotion but they managed to get round this last time round with the cash box method. All imo and dyor

No way will it be as low as 0.25p. That would be insane.

And stop making up bs about me whilst you’re at it. Grow up and own your errors.

Troajan - do one. I was responding to KR. Not my fault or problem that you have lost money on your bad calls with He1 so don’t take it out one me. KR is one of the few who had the good sense to listen and knows when it comes to He1 you’re peeing in the wind like the rest of them.

Story doesn’t make sense. Why would anyone approach them for funding out of the blue and unsolicited? Surely these potential funders first knew He1 needed funding and then made their approach?