Member Info for Legalwolf

Brimstone - I don't think BG really knows what is going on? I mean, at one point, he said the majors don't even know that OMI exists or words to that effect! Well, how can that be if he has been in regular discussion with them? I mean, when they have meetings etc, who do the majors think BG is and represents at those meetings? The minute taker?

That comment doesn't reflect well on the relationship between the parties, although it might sadly be true. All imo

Sorry Breaktwister - I should have added that I was responding to your comment:

"I pointed out in previous posts that once Phase 2 begins MMA need to spend or pay OMI $4m per year. Why is OMI ignoring this?"

Once Phase 2 begins, MMA need to spend only $350k in the first 12 months, and then $4 million/year.

Breaktwister - this is nothing personal, I respect your posts and agree with much of what you say. But where I think you have misunderstood the position, which BG clarified yesterday, is as follows.

1) Phase 2 has NOT started yet. Therefore, Year 1 of Phase 2 has not commenced.

2) In order to commence Phase 2, the parties have to form the mining company. This is where things are.

3) There is no fixed deadline for completion of the mining company process. This is a weakness in the JV.

4) Once the mining company process is completed, it will trigger the commencement of Phase 2. Therefore, the parties will start Year 1 of Phase 2.

5) From this point, the majors will only need to spend $350k in the first 12 months (i.e. Year 1)

So let's say they complete the mining company process by September 2023. This will trigger the start of Phase 2 of the JV. And Year 1 of Phase 2 will run from September 2023 to September 2024 and require a spend of $350k in those 12 months.

From your posts, you appear to under the impression that Year 1 of Phase 2 has commenced. It has not.

That has been my understanding throughout, and was confirmed by BG yesterday.

Of course, If I am the one who has misunderstood this, then I of course apologise for that. All imo and DYOR

As I said a few days ago, what this boils down to now is how much TIME its going to take to resolve all this, and get the situation back to a point where the market can look forward to drilling recommencing at Anza. That itself depends on what the ultimate solution is here, and it could take anywhere between 6 months to 18 months to get to that point, depending on what the majors decide.

The first step obviously is to establish from the majors what they want to do. If they don't even know that OMI exists and aren't in a rush to decide, then its BG's job to make sure they do understand what OMI's needs and expectations are. And whilst it might not matter a zilch to the majors what happens with Anza right now and time is not of the essence for them, that it matters hugely to OMI and time is very much of the essence. That's the firm and frank dialogue that needs to happen, but whether/what leverage OMI have in taking on the majors here and getting them to understand and agree to things is what's not clear. All imo and DYOR

"I pointed out in previous posts that once Phase 2 begins MMA need to spend or pay OMI $4m per year. Why is OMI ignoring this?"

Breaktwister - I think you have got this wrong. BG confirmed that the majors have already met the spending commitment for Year 1 of Phase 2, through the carry over. He specifically said that once Phase 2 starts, after the formation of the mining company etc, the majors could choose to do nothing for the first 12 months. The majors only need to spend money when Year 2 starts. All imo and DYOR

According to BG, it's Newmont AND Agnico, not one vs the other.

Here are some of the key things BG said:

- Nothing in writing, but from "chats" with the majors it has become clear that they want to move on from Anza and wind back in Columbia. Hence OMI decided to RNS the market.

- Doesn't think majors are playing hardball here.

- OMI can't properly plan its other projects in these circs, without knowing what is going to happen to Anza.

- Phase 2 never legally entered into, but major have met all the obligations of Phase 1, and have a legally binding right to move into Phase 2. The majors have said in writing they want to move to Phase 2 and paid the $2 million.

- But the process for Phase 2 - creating the new mining company - has been ongoing for some time but very slowly.

- OMI itself has also intentionally slowed this process down, because of the majors wanting to leave.

- No legal timeframe for completing the Phase 2 transition work, and BG commented that is a weakness in the JV agreement. (But if majors really drag their heels, OMI has recourse to legal action).

- The new company formation is slow anyway, and they need to get it right. But the pace of this process is out of OMI's hands, and majors do move slow on these things. But majors have no reason to delay it.

- Once complete, majors have already spent their $4 million for year 1 of Phase 2, so can sit back for 12 months if they want. Maybe they will do this to see how things develop.

- Preferred option is for OMI to take back the project, buying it back from them. Doesn't think majors will find other buyers for their share of project. OMI have presented its case to majors for this (and might need to raise money for this).

- Feeling positive about other projects though, especially Argentina.

Anything positive said at the event won't have filtered through to the rest of the market, in order to generate a spike, as it would only be known to those who attended/heard it?

Of course, anything positive and NEW, would have to be released to the market as well. But if He1 have simply confirmed at the event that they remain firmly and confidently on track with the current plan for Q3 drilling, then that would be positive news, but wouldn't need a RNS. And then who knows what inadvertent/indirect clues and giveaways, inverstor's can get from meeting the management teams in person at these events? All imo

Roger65 - our posts crossed. I remain hopeful that POW can still come good. A lot of that is based around Tati and our Uranium assets.

Well, we have quite a few large buys in the 7s this morning, and just wondered whether it might be linked to the event in some way?

I'm not sure the IPOs will result in much increase in POW's share price, at least whilst they remain pre-discovery. They haven't so far to be honest. I would have thought that any investors interested in such projects, will buy shares in the IPO rather than invest in them through POW. Our best chance of seeing share price growth remains through our own projects imo. To that extent, we remain no different to other junior explorers.

All imo but what do others think?

I know that He1 were/are presenting at this event. Does anyone have any relevant new information to share re the event, either from personal attendance or links to recordings/presentation?

That's why I was asking about the timing and sequence of events for this financing. By the time they get this conditional financing over the line, or at least both stages of it concluded, they will likely have drilled B1 at least?

The outcome of the drilling will determine the value of the company, so how are KAV and shareholders meant to know whether 1p is giving away the family silver for pittance?

And what happens if Ditau assay results are positive. Does the 1p sale price get scrapped?

I thought KAV were going to WAIT for the Ditau results BEFORE deciding where to drill first?

Curious why they have now decided not to wait for them, especially as they were due to be received.

Rick Rule is a really well known and respected voice in the sector, and if his company has invested in POW for the long term, that is a really good endorsement to have, and will increase interest in POW as a result. Hopefully, it will be the full £1 million invested from his company. The placing overhang is a concern, but nothing that very good news can't help POW to clear.

What is the potential for really good news to land here next - Tati, Uranium or new IPO?

It should have been by now.

I think what concerns me is where this leaves potential upside for retail shareholders. At the moment, our upside is built around the share price moving on:

1) anticipating a discovery during commencement of drilling.

2) making the discovery.

3) monetising that discovery through JV with a MAJOR or asset sale.

4) making a new acquisition.

How does, or might, having Purebond come in as majority and controlling shareholders negatively impact us when it comes to 1 and 3 in particular?

And what happened to Tamesis bringing in JV partners? That all looked like it was going to result in something positive at the start of the year, and then it went quiet. Won't this development make it less likely that JV partners will come in?

Thanks Slowly - that does help/clarify.

AGEOS - thank you for directing me towards the document, which I have managed to retrieve. I agree with your comment that: "In view of the inevitably complex and potentially lengthy extent of this discussion I suggest we... wait until the May 15th webinar when hopefully more important developments will take precedent."

Therefore, there is little to be gained by my wading in here with my own musings about the interpretation of the agreement, as the webinar is, thankfully, not far away now and will provide us with the definitive and authoritative answers to any grey areas. Furthermore, all the updates since Sept 2022 have indicated that they are continuing to progress the agreement, and not mentioned that an party has been slow in doing so, or outright breached its requirements/deadlines. So I don't expect BG to be talking in those terms at the webinar, but let's wait and see.

Forgive me, but I am trying to understand this better, so that I can form a better and more informed personal opinion on whether or not this is a deal worth supporting or not. Firstly, do we not need to know what the "conditions" are for this "conditional subscription" by Purebond. Or are these just standard conditions and not a key factor here?

Secondly, can someone help me with understanding how this proposed conditional financing will unfold vis a vis our forthcoming drilling campaign(s). Is it as follows

1) Purbond will first acquire its stage 1 Shares, taking its (and Solai's) interest in the KAV to 26.7% interest

2) After or alongside stage 1, KAV will be drill at KSZ and/or Ditau.

3) Upon the outcome of this drilling being known, do Purebond then have the OPTION or the OBLIGATION to subscribe for their Stage 2 shares? [Again, what are the "conditions"?]

Thanks in anticipation for any assistance re the above.