Member Info for Legalwolf

Imo, at this moment in time, this is a trade at best, and not an investment. There are still some significant risks and questions for it to be overcome, for it to be deemed a long term investment. Currently it has 2 billion shares in issue with a circa £5 million mcap. The company has debts and obligations that it needs to pay, old and new, totalling £millions. It is currently looking to agree repayment terms, with its creditors, such as Mill End. The repayments will be made in shares (in part at least). In order to make any such repayment(s), it needs the legal authority to issue those shares, which can only come from the issuing of the Prospectus. Now IF that authority is not forthcoming, or GCAT is not able to meet its obligations for some other reason, then the creditors now have security over the subsidiary as well? And wasn't CGAT itself created out a situation where the previous owner of the mine accrued losses, which losses were carried into GCAT as part of its acquisition? That was in 2020. And by June 2022, GCAT's loss stood at £16 million.
When you look at all of this in the round, yes GCAT might be able turn this situation around completely, and proceed as planned. But equally, if they don't, then the risks are there for all to see. For all we know, this £1 million might have been provided so that the creditors have legal leverage over the assets in the form of the security, rather than wanting to help out GCAT. The act of a vulture/predator rather than a saviour?
So VERY high risk at the moment, which reflects the share price. All imo and DYOR

I'd prefer a sale/JV and believe the RNS hints at that being the primary objective. ECR simply has too much on its hands, and too little cash as it is, to add this to the growing list of expenditure. We want to start limiting the need for more dilution and not adding to that burden.
Having said that, if exploration in the Philippines is ridiculously dirt cheap, such that ECR can grow the value of the asset with very little expenditure (i.e. spend £tens of thousands to grow it by circa £million) and there would be a buyer or affordable development project at the end of this process, then why not?

To the extent that there are legitimate questions to be directed towards the KAV team, I would suggest that its the 'geos/experts/advisers' used by KAV, who need to come under scrutiny, as much as (or even more so?) than BT himself? BT has done the minimum required of him as CEO, which is to bring in the cash to ensure that the projects are drilled, and in accordance with the input/direction offered by the others, and promote the company to investors. He did a pretty good job in the run up to the 'year of discovery' and was almost universally popular and acclaimed on here.
But ultimately, the results on the ground and performance of the share price change everything. And BT is now finding, a bit like a new football manager, that the honeymoon period is over, and the fans are turning on him. Only results on the pitch will change this now.
They have to get the strategy right for this £3.5 million and deliver growth, which means results on the pitch. Otherwise, KAV will end up on the bonfire of dilution.

Well, judging by the responses to his tweet today, BT should be under no illusions about how disgruntled (and underwater) a lot of his shareholders are. Don't think he's going to get away with spin and rhetoric as much as he maybe has in the past.

Yes, that might well be the best and only approach. If it continues, that is exactly what I will do.

JC - it all depends on the Prospectus being issued. That is the next key step imo.

Rx - very dismayed that your very next post to the one below was to attack another poster again. Come on, time to stop getting so personal all the time towards Tamer, for the sake of this BB. Can you please just stick to the negative opinions about ECR, without constantly referring to other posters in the process.
Pretty please!

"TS: It's just another example of mindless ramping from yapper - after all the posts about ameliorating the language on here away he goes again with the same crap - he just can't help himself - he clearly has psychological issues.
I'm currently giving PD the benefit of the doubt and assuming he's being ironic?"

I think if we ALL try to get the balance right, between banter and digs towards each other, and discussion about ECR (positive or negative), this BB will be SO much better for it. This is not aimed at anyone in particular, but at times such postings have been extreme to say the least in terms of their volume and frequency, and have made (sensible) discussion about ECR more difficult at those times (which as I say, has been most of the time of late).
So I think if we ALL try to make a conscious effort around this, this BB will return closer to its actual purpose, which is discussion about ECR. All imo

SoG - I note your last post was: "With funding sorted and gold production in line with what RM has been constantly ramping, then I am sure these so called "bashers" will be back in."

Make your mind up!

"... the Restructuring has been completed without materially impacting the Company's economic value in the Project."
"... whilst ensuring the Company retains the vast majority of the economic value in the Project."
There is a contradiction in those two statements and so this does need clarifying.
Having now restructured and provided evidence of that restructure to the GSMB, we will now find out if the GSMB were being genuine here in the first place and will reinstate the licences. GLA

Am I right in thinking this is simply the KCB update, and the strategy update is still to come? Although I guess from this update, we now know already that the next drill campaign will be at this KCB prospect, likely commencing in March?

"The total cost of staking the Properties was a combined CAD$3,340.75." Just why is it so cheap for us to get these new properties?

Does ECR even really need a second Rig, for the limited nature of the drilling campaigns it tends to do? And can it even afford to operate 2 Rigs on the ground? I'm assuming the answer is YES, as otherwise AH wouldn't have gone ahead with the purchase, unless by then it was already a binding sale?

Worth factoring in the update that Noble provided at the start of this month. They have less cash than He1, and are looking to drill two exploration wells. Yet they have at least FOUR rig options and their Rig selection in imminent.
So this fits in with the update we have been provided by He1, that they also have several Rig options available, including a Rig share option (likely with Noble?). Therefore, no good reason why Q3 drilling won't happen. All imo and apologies if this has been shared/aired on here already, but thought it might be of (background) interest to He1 holders.

"Preparations for the 2023 maiden drilling campaign are now well underway with our highly experienced drilling management team fully integrated into the Company and focussed on successfully delivering the well program. The team have networked with other Tanzanian operators to source a suitable drilling rig, resulting in FOUR viable rig options under consideration for NHE’s 2023 program, with a rig selection imminent."

AS01 - I agree with your analysis that if we get positive exploration results, the next raise could/would be at higher levels. But we also need to consider the situation if results are not positive. That is not to be negative or defeatist, but it is always important to consider both scenarios. At some point (this year I would imagine?), POW will need to raise funds again, for general working capital and to fund ongoing exploration and corporate activities. Market conditions remain tough (and rather unforgiving) right now for the sector, and by the looks of it, we also have large seller(s) to contend with.
So, some share price moving news is definitely needed before the next dilution occurs. But like you say, it could arrive from Molopo still or from the other projects.

The £3.5 million is what they raised. It has to be added to what they already had.

Rxdav - because I know how particular you are about such things, I believe it's spelt *cognisance* ;-)
(Sorry Tamer/PD1 if I should have left this one for you)

Problem is that very recently, BT suggested that they weren't ready to return to B1, as they still had some work to do there. Given the outcome at KCB, one wonders whether they will even be ready to move on to the shallower target licence areas mentioned in the RNS, or will need to take stock of existing results, review the efficacy of CSAMT and then re-evaluate their proposed exploration model/method before returning to drill.
I just hope the are ready to go somewhere soon and have the plan to do so. I believe that for sentiment, we can ill afford a hiatus in drilling activity at this moment in time.

For me, the next few set of drilling results are going to be very key for ECR and the share price. In fact, I would say that for Blue Moon, the next results will be determinative of whether ECR ever go back there again. At CresWick, its such a large scale project that ordinarily, one set of results isn't going to make or break the project. But from where ECR are right now, the next set of results at CresWick take on an added importance in terms of the share price.
ECR are on a bad run of form when it comes to failing to produce any share price moving drilling results, and share price growth, from the £millions they have spent in the process. They simply have to end that run now, because the share price is very low and if they have to do the next raise at these levels, then it starts to look like it will enter the same death by dilution spiral that a number of other juniors are finding themselves in, and then it doesn't matter how promising the projects are anymore! All imo

JP2000 - a lot of us agree with the you on that. The problem is, I'm not sure that KAV even know what their best opportunity is anymore, and are seemingly a bit lost at sea in an ocean of complexity. But hopefully they will chart some kind of course through this in the updated strategy document to follow shortly. Key question is where will they drill next?