Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
"the conversion of £750,000 of outstanding loan notes and associated interest into 98,917,808 new ordinary shares of the Company at a price of £0.008"
I didn't realise that the interest converted too.
"Post conversion, EXT will hold 432,555,025 shares in the business representing 24.37% of the business"
Which is up from 19.91% shown in the recent presentation.
If we do borrow more via this facility then it won't be long before EXT are majority shareholders.
I see on page 14 it talks about 'recoverable resources' at Tobias of 7.7mmbbls which is a reduction on the previously discussed 'prospective resources' of 11.7mmbbls.
The table is a bit difficult to read too: It says "Net to Corcel" but not for all the numbers? Surely the CAPEX to first oil at $28m is not just our 20% and we are raising 20% of it or $5.6m?
I read it that they are trying to negotiate the legal difficulties of Mr Karam being seen to be a provider of convertible debt to a company Mr Karam is the Executive Chairman of.
So I do I hope you are right conrad02: "Yeah Sure!"
This situation is difficult because of this conflict of interest. I personally think any more convertibles should be at a higher rate now, otherwise it does like exploitation.
Assuming the wells are producers, has anyone a guess at how much from here in £ terms it would take to get to production?
The initial drills and now tests must have cost quite a bit already. Am I right in assuming that the cost to get to EPS would be less than we've already spent?
Great posts. Thanks.
The Corcel website says that at Kon11-Tobias historic production was 29 mmbbls. And it suggests that unproduced prospective oil resources are 65 MMbbls.
https://www.corcelplc.com/project/onshore-kwanza-basin/
With the recent RNS news that the reservoir may have been recharged, how much (if any) of that 29 mmbls can we expect to have been recharged?
JAllis. You said "The note goes on to describe how attempting to raise the full $13.4M from a farm out partner will be too dilutive and this approach has previously been decided against by TRP:"
That isn't right if the alternative is 50% dilution to the shares. Giving 70% to the farm-in partner to fund the drill would be cheaper!
The funding offer Mr Karam provided was generous at the time and is probably a major reason our share price is where it is.
However, if the company further draws down on this it would in effect be selling 1.4p shares for 0.8p. That is a stupid thing to do if there are alternatives.
I do hope that he will revise any future loans into a higher conversion price, because otherwise he is plainly exploiting the fact that he manages Corcel.
But most of the funding isn't taken yet and there is no obligation for the company to take any more from it.
Why would an independent company not look for the best funding option when its circumstances allow?
I know that there is an existing agreement for funding to Corcel via Antoine Karam's company for up to $8m at 12% interest which are convertible to shares at 0.8p.
The current share price at 1.3p is 62.5% higher than 0.8p. An Open Offer or even a share placing would offer the company a much better and cheaper way of raising money now.
This conflict of interest and the future chosen funding solution may show us the integrity of the BOD.
Maybe we shareholders should let the BOD know this?
If they can get back to those sort of production figures then I make our 20% to be over a million barrels per year.
What does that net after brownfield taxes? $20m+ per year for 10 years??
There is upside on the block and elsewhere too.