Member Info for Lottohopes

Chow: The figure is suggested to be between 6-20 million. I'll go with 10 million? From my observation, (good) junior explorer companies are very efficient at value creation, and tend to add several multiples of cash raised. Solg for ex added 8-10 fold Imho. Here, they intend to go into advanced projects near production or ex production. So I would stick my neck out and say value created will potentially be even higher multiples. Then there's debt which will provide leverage, without diluting holders. Of course this is for patient investors, who are willing to wait and watch the story unfold. Good luck all

"China Africa Resources Namibia (pty) Ltd was 100% owned by the Company and incorporated in the Republic of Namibia. The principal activity of China Africa Resources Namibia (pty) Ltd was exploration and evaluation of mining assets in Namibia. The company was acquired on 11 August 2011 by the issue of 6,326,923 ordinary 1p shares at a price of 40p, being the market price on the date of acquisition. The acquisition price was converted to US dollars at an exchange rate of 1.642, being the exchange rate at the date of the transaction. The principal reason for this acquisition was to develop the Berg Aukas Mine project in Namibia. On 14 December 2016 the Company disposed of its sole interest, the Berg Aukus Mine project, held through its wholly owned subsidiary, China Africa Resources Namibia (pty) Ltd, through the completion of an in specie distribution. The special dividend was independently valued at 1.75 pence per share and totalled £403,846 (equivalent to US$504,000)." I'm trying to imagine how I d feel if I had gotten at 40p. Gradual erosion of money raised followed, they didn't acquire any other assets, and eventually turned into a shell. A thirteen fold dilution, a 1.75p payout, and shares in the Namibia asset which don't trade on LSE. It's a reminder of how brutal mining sector investments have been, if you got the timing wrong, through the down turn. This bear cycle started mid 2011, so CAF got its timing awfully wrong. Of course hindsight is always 20/20. There must be a few very angry investors. Still, some have made money out of the circus. I hope at least a few are still holding, and this new chapter brings them some well deserved money for their patience. Good luck all

https://hbr.org/2015/07/a-refresher-on-debt-to-equity-ratio https://hbr.org/2016/03/a-refresher-on-internal-rate-of-return?referral=03759&cm_vc=rr_item_page.bottom I think these numbers: D/E ratio, IRR, NPV etc will be discussed in the next weeks and months, as projects are acquired. It would make sense to brush up on these concepts, atleast for novices like myself. It's very basic, but it's a starting point. Hope some here find it useful.

Imagine an RNS at 5pm hehe

That's a recipe to lose money. Grass hopping....

Nearly half a million dollars in unrecognised deferred tax assets with NO expiry date. So this can be offset against future profits. And going forward, directors will have performance based remuneration to align with share holders interests. Fees in share based payments of $184,000! Consultancy fees.....It's clear to see who profited by staying in the shell barely 2 months. Change in name has drawn "a clear line in the sand". Next four weeks should be interesting. Good luck all

Del: I do think it will take a bit longer than a weekend to sort the finance even if the actual raising closes tomorrow. I listened to Peter Bojtos again, still feeling annoyed about the manner in which Charlie kept interrupting, almost felt like he wanted to control the interview, perhaps slightly intimidated by Peter's background ;-) Peter is BOTH a mining engineer and a geo! It was hilarious that he had spoken for a few minutes, rattled off several companies/mining projects and reached only 1980 in his CV lol. So the individual SPVs will raise debt later on in the story, to finance the mining op. This week's capital raising of between £6-20 million is purely for PERE to purchase assets. Interesting times ahead. Levi: I agree most people will wait to see what funds are raised, at what price before getting in. Only few fools like you and me.....

Do folks reckon there will be a rush to get in before weekend?

Chow: thanks for the link. Peter Bojtos exudes quiet confidence as always. I felt Charlie was constantly interrupting his flow of thoughts. Perhaps had a list of questions to cover? I feel that given the opportunity, Peter would have taken an actual example from the shortlist and spoken about what's attractive about it, and how they could possibly turn it around, a "case study" so to say, to help potential investors understand a bit about what they intend to do. I do think many are staying away due to previous experience of RTO shells failing, secondly because of uncertainty of raising share price, and thirdly just lack of awareness of this type of product. Gibson is head of mining at Edison Research and they were commissioned to produce a series on LPEQs which I found very helpful, as a novice. Interesting comment on extracting other byproducts and looking creatively at the pre-existing resource estimates/mine plans. Should be a good few weeks ahead. Dividends is the intention-so I hope the rainbow chasers think carefully about jumping out of this one even when it starts rising.

Hi folks...quiet week or two before news here...the excitement is palpable. Good luck all

Dave: My goodness your busy! Have fun

https://www.linkedin.com/m/company/3493585/details/ "Centurion Resource Group: manages fund of target size $500 million." As stated before, no info available publicly on current size or league performance

DL was cofounder of cross asset management, a private fund which was taken over by RAB. It was a cash plus equity deal as RAB was a listed fund (Cross team inc DL were retained). Cross managed over $200 million. DL was also involved in Centurion resource group and Sirius investment group. http://www.hedgeweek.com/2005/06/22/rab-capital-acquire-cross-asset-management http://www.prnewswire.com/news-releases/centurion-resource-group-welcomes-new-partner-certified-mineral-appraiser-bernard-guarnera-228918321.html Barney is also from Behre Dolbear where DL was director. http://www.prnewswire.com/news-releases/centurion-resource-group-announces-joint-venture-with-buck-morrow-under-the-moniker-centurion-consolidated-mining-250595721.html Above link on Centurion is essentially about putting together a team to look at investing in mining companies, difference being it was unlisted unlike PERE. I m trying to examine if DL has done this sort of thing before: accumulating a talented bunch is one thing, making it work as a team is quite another. Unfortunately the success or otherwise of these funds is rarely accessible in public domain given they are all unlisted funds. Safe to say he's put together teams of this type several times before, and for this very purpose: finding value in mining area. Good luck all

My goodness: this bb is full of rampers lol when you can't beat them......DL mentioned real value creation, not just movement by a few pence. The advantage of getting in early is of course a low average which really makes the difference as sp takes off....well done to all early birds! (That's not a sexist remark, wouldn't want to offend Screech!) good luck all

Well done Dave! I think there are many waiting on the sidelines, hoping the raising price will help a drop in price. Question is whether market will allow entry, and more importantly, how much will sentiment improve on a cash raise? We will find out soon. I m not too fussed if the raising price is say 2.5 or 2.75. I doubt we will be able to buy big amounts at that price once news hits, in open market anyways. BOD will buy in big time. When I told Rolf I wouldn't be too happy if the raising price was too low below 3p, he replied "I wouldn't either, Ive got money in it too".

Had a listen of podcast: DL sounds very confident and relaxed. As I mentioned before, most of the due diligence has been done Feb-May (NDAs in place hence the vagueness in presentation) and now we are just waiting for cash to be committed before signing on the dotted line. News flow next week on funds raised and news on first project by week after at latest. I expect very detailed project plans with all numbers including revenue projections etc. Such a professional team, it will be a joy to see the plan unfold. I had another top up this morning. This is not worth a quick few percentage profit, DL keeps mentioning "real value add". Good luck all

Afternoon folks :-) just thought I'd say hello before someone accuses me of ramping and then having sold lol Been doing more reading last night on SPVs and LPEQS in general. Just my two pence, could be completely wrong. Typically the market cap is at a discount to the NAV. Sometimes this discount can be beyond 20-30%, making them good value. Managing teams tend to have 10-25% skin in the game in public equity side, and 1-5% in the actual assets. They tend to attract the best talent because of the upside, driven involvement, and fully expecting entire team to put their own money in, to align interests with investors. Great leveraging by raising multiples in debt, of equity raised. Also securitising means they can revolve debt. And they have consistently outperformed traditional equity markets/FTSE etc. All in all unusual in the investing space, atleast for me. Still got to read on area. Exciting times. As always DYOR and invest based on own judgement. Good luck all.

I've been trying to understand these two concepts as they seem central to the investment. My limited understanding is that SPVs are a type of securitisation, prevalent not just in private equity but throughout the capital market. Secondly, they offer the option of separating/compartmentalising investing and therefore risk, away from parent company (PERE here), onto individual entities which will manage each project. Thirdly, and perhaps most significantly, structurally they can achieve this without necessarily diluting the parent company shareholders rights. Am I correct in my understanding? Can someone with greater awareness of capital markets help us understand these concepts please?

So what additional info has the presentation added? This is of course my interpretation which may be completely wrong. Boards are for speculation too, if we all just stuck to hard facts, it would be a boring world. The company is going for a rule 8 route rather than RTO. A lot of background work has happened Feb-May, and we will see the idea reaching fruition in next two weeks Cash raise seems likely to exceed 6million from language used (if they expect to invest in Atleast 3 priority assets and have 10 lined up) Preferred commodities seem to be silver/gold with bits of other minerals/metals thrown in; PGM is interesting (thank goodness there isn't a Lithium play, I think there's enough companies chasing that commodity, we have left the herd) Preferred jurisdictions are stable (if you can call the USA that with Trump around lol) mature and of course where the team has worked before: Canada and the States Three priority projects are: Asset 1. Relieve company of streaming contract with cash injection, take positions on the board, drive efficiencies in mining and earn in a percentage Asset 2: Buy undervalued asset outright and run it Asset 3. Redevelop project moving from open pit to underground, regulatory work, new mine building. "High grade" gold = attractive AISC. This is the type of "small can be beautiful" project DL was referring to in previous interviews. Dividends is very much part of the intention: the magic word every investor looks for and which no doubt will attract hordes if/when concrete plans are announced. All the above is just my humble opinion. As always DYOR and invest based on your own judgement. Good luck all

http://business.financialpost.com/news/mining/the-dark-side-of-metal-streaming-deals-strapped-mining-companies-trade-future-value-for-cash So in essence, in the last 4-5 bleak years, many producing miners have streamed their future metal production esp silver. Our first target is described as having "a crippling streaming contract". I m guessing they had a get out clause for payment, which is where Pere comes in.