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Why the hell s this man negoitating a bloody sale full stop . Is the only question that needs a detailed answer ,

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Agreed Scott. He should be pulling out all the stops for a fund raise not a sale (to Aussie mates, how convenient). It stinks. We being swindled.

Agreed KOH but everyone seems to have become sidetracked/focused on a sale. That shouldn't be the focus Raising capital, not a sale is what Fraser needs to be doing. Now that we know the alternative - fleeced for our shares for the price of a few months TORPS - I think PI's could (reluctantly) raise the $600M.

2-3p = and that works as I've mentioned over the weekend.

I was thinking about it for a while and something really stinks here. The company apparently had enough cash to continue operations for 6 months in Sep / Oct. The predatory approach from AA must have happened well before Xmas considering they announced "well advanced" takeover talks in the first week of the year on 08-Jan-2020. Moreover, the board is already expressed their willingness to recommend the sale. It means that there is a good chance that the board had a good idea of what was going on at the time of feeding us with "strategic review" nonsense. These things don't happen overnight. What's happened to the whole review announced only in Nov-2019? What's happened to the whole "Initial Scope" idea? They clearly stated in November that:
- Strategic investor process - A number of parties have expressed interest and are actively engaged in due diligence
- Financial investor process – discussions ongoing with potential investors
- Execution window through to the end of March 2020 (!)
- The Company is seeking to have the Initial Scope funded from the proceeds of either the strategic investor process or through a structured debt financing package, either of which may incorporate the issue of new equity or an equity-like component to the financing package.

Why are they recommending a predatory offer at 5p per share in the first week of January?

KOH

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Absolutely KOH. The SR update and the timing of AAL due diligence/offer - advanced talks well before the expiry of the SR period stinks because the AAL potential offer of 5.5p is a fire sale and we should not have been in fire sale territory in Nov/Dec when the SR period was to run through March.

The company should be focused on raising funds to keep the shop open, not giving away the shop. WTF is going on here??!!

They don't. The 600m to de-risk and raise the reminder via debt at competetive rates. It's that simple in essence. They have resource, they have sales agreements, they have amazing sub-contractors. They don't need AA or any other predator at all.

KOH

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AGREE STRONGLY KOH!!!

We've raised a multiple of this pre construction and pre sales agreements. So how come they cant raise the money now they have two years uninterrupted construction progress and 13 mta TORPS

Instead one Aussie ex Fortescue guy recommends we should sell up for buttons to another Aussie ex Fortescue guy. Stinks. Maybe even criminal.

Disagree strongly Polyminer.

The company needs to see this through for shokders to unlock value. Value will be unlocked when we have accesss to the resource. At that time even Fraser has admitted that it'll be job done for him. That's the time to sell this on to an operator at a fair value, not a fire sale value.
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I'm not saying they intend to do a RI....the last RNS suggests Fraser would be happy to flog this to his Aussie mates (with a seat on the board and options?).

What I'm saying is that the only way to retain ownership and have a fighting chance of recouping our investment (cos a sale at 5.5p or even double that still leaves most in a big black hole) is an RI .

I'm not sure how much thought the BOD have given to this option (maybe none), but with PI's knowing the alternative is wipe out, it is my opinion that enough PI's (and perhaps some II's) realizing they're on the verge of wipe out, may be willing (reluctantly) to dig deep enough to cobble together the $600M that is needed to keep this show on the road.

I think the BOD may underestimate the ability to raise the $600M from existing sholders especially if they allow for oversubscription. I know a number of holders that could put up six figure sums.

A Rights Issue at 2 to 3p is the option of last resort to keep ownership with current holders. That's why they haven't done it....yet....

but you knew that ….twisting the facts as usual, disingenuous feck.

"Plenty of time to raise the funds."

If they were going for a placing or an RI, they would have announced it ages ago, they have already had a few days short of four months.

Also, they knew that the bonds had failed in August, they had a whole month there to speak to financiers and try a placing/RI.

So that's five months.........

I know you do not want to hear this, but be honest with yourself.

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Bit rich you mentioning honesty IBAB!

A rights issue can be arranged in 16 to 30 days. Still plenty of time.

Don't tell me what I know full well. They have until at least end of March before the cash runs out and there is any question of insolvent trading. It's not even mid Jan. Plenty of time to raise the funds.

Half truths in your post twisted to suit your agenda - AGAIN!

IBAB - "eminently doable with a willing BOD."

my point...…

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Interesting that even IBAB thinks that the BOD may not be acting in the best interests of sholders in accordance with their fiduciary duty. At last some common ground!

If this gets sold to AAL, then the BOD better have a good paper trail showing the extent of the strategic review and how hard they tried to raise the $600M. They may need it to defend a class action. And in the absence of speaking to one single PI (the largest class/group of sholders by far) to gauge interest for a raise at 2p, then I don't see how they can claim to have left no stone unturned.

We're being robbed blind by a sale and no one should let that happen without a fight and/or a class action if this Aussie shuffle occurs.

Bucky, can you tell us if the company goes bust, does the planning permission lapse, hence whomever buys it, will have to go to the council again. If there is no planning permission, what is gina going to get out of it.

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Please stop engaging "Bucky" as if he were some sort of guru. He's a snake that'll give you some partial truths scewed to suit his own agenda.

Answer - Planning permission runs with the land and is not personal to the owner

IBAB says - DEF: Strategic Investor.....

"Strategic investors usually invest so they can potentially acquire the company at a later date."

BUT

If you look up strategic investor I think you'll find a DEF more like this -

Individual or firm that adds value to the money it invests with its contacts, experience, and knowledge of market thus brightening the investee's prospects for additional investment and success.Read more: http://www.businessdictionary.com/definition/strategic-investor.html

No mention of acquiring co at later date.

That's why IBAB id dangerous, disingenuous and a snake oil salesman of the highest order. Karma will catch him one day. BT engineer my ar@e

IBAB - feck off with your "honesty" and your "altruism"

An equity raise at 2p to keep ownership/prevent a sale is eminently doable with a willing BOD.

But now we're in a takeover scenario the BOD are gagged. Have they engineered this outcome or are they scrambling to react to a leak that forced the maybe offer at a maybe 5,5p price, maybe lower maybe not.

I think some folk are losing perspective. IMO best not to discuss whether 5.5p or 10p is a fair offer for the company. The company SHOULD NOT be sold. The way to unlock value and get all shareholders back in profit is to raise the $600M required to get over the high risk hurdles (which AAL don't see as high risk at all btw - listen to their investor call), raise the rest in debt, and continue the build to production.

As my posts yesterday clearly demonstrate, even if we had to issue 30 billion shares at 2p each to raise the money, everyone could recoup their losses - and some - by holding to 13mta production.

BOD ---- DO NOT SELL OUR COMANY.

RAISE EQUITY

KEEP OWNERSHIP

Tex - how do we insist. I don't know and maybe that's a poor choice of words.

How about request? petition? suggest? protest outside HQ?

I have no doubt the II's will not block a sale at 5.5p. As has been pointed out, it's not their money and it's not a significant part of their portfolio compared to most PI's. They will vote for a deal, even a bad deal. Anyone who thinks the AAL deal will be blocked by PI's is dreaming.

So the only way to keep this in our hands is to try and convince the BOD that there is demand and a raise at 2p would be successful.

I don't have all the answers or a magic wand, but I think I have made a compelling case that an attempt at a raise is preferable to a sale at 5.5p. If nobody listens I accept we're doomed.

2/4p offer .HUGE DIFFERENC, in the long term

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Scott I agree and so does anyone who can use a calculator. BUT as IBAB delights in reminding us, we're in the last chance saloon. There's a better chance of raising the funds at 2p than 4p IMO. A raise needs to succeed.

Otherwise we're looking at the square root of eff all - 5.5p doesn't touch the sides for most and wipes out the future for many. A successful raise keeps the upside in our hands and allows us to reap the full potential value unlocked by accessing the resource. Don't let the Aussies (Fraser and AAL) mug us.

IBAB has a new diversionary tactic, his life story. Yawn.

Lets get back on topic.

The sums work and the only way to protect our investment and save one Aussie passing it to another from under our noses is to INSIST the BOD try a public offer to raise the money to keep the company in OUR hands.

To be honest I don't really care, 2p, 3p 4p, it needs to be priced to go. Whatever it is, this is the way to protect our investment and maximise sholder value

As IR now need a chaperone to speak to anyone (excuse not to speak to anyone) EVERYONE who wants to save their investment should email Tristan at IR and insist the company propose a 2p fund raise for the $600M. Direct action required to save your investment.