Member Info for mac4671

"M&A due diligence – Due diligence is an exhaustive process that begins when the offer has been accepted; due diligence aims to confirm or correct the acquirer’s assessment of the value of the target company by conducting a detailed examination and analysis of every aspect of the target company’s operations – its financial metrics, assets and liabilities, customers, human resources, etc."

https://corporatefinanceinstitute.com/resources/knowledge/deals/mergers-acquisitions-ma-process/

Several transactions -

Christian Schaffalitzky, Executive Chairman of Eurasia commented: "The Directors are delighted that we are advancing several transactions concurrently. We see competition for Nickel-Copper-PGM assets (with a similar basket of metals like ours and the assets included in our agreement with Rosgeo) increasing on a global scale".

And we arrive here -

"Purchase and sale contract – Assuming due diligence is completed with no major problems or concerns arising, the next step forward is executing a final contract for sale; the parties make a final decision on the type of purchase agreement, whether it is to be an asset purchase or share purchase"

That's all we have to wait on at this stage, they'll have their financing in place and step 10 comes after we vote on the disposals via a EGM.

Feet up and very relaxed, the main work has been done. Grab a Koka Kola and relax!!!

GLA

No worries Tilly, i bring the majority of stuff i find here, all shareholders deserve to see any relevant info.

I hope you've had a good weekend!

GLA

The shorts certainly won't get much sleep this evening that's for sure. Perhaps the asset sale of WK relied on that flanks app being signed off before deal details are released?

No one knows the agreements in place between Eurasia and the buyer. We're firmly in the news dropping window with heading into the third week after DD was complete!

GLA

Not my digging Tilly, it's Richards tweet that contains the flank license info. There are a few investors now who don't miss the changes on the authority registers.

This latest WK flanks app has taken a long time to go through the system to be honest, far longer than any previous apps. I'm just wondering if covid restrictions has also been a factor with that as everything appears to be running but running far slower than you would expect, even the DD by the buyer was pretty lengthy and 5 months.

The good news is that it's still all managing to progress forward however, even if it does move slower than usual it still arrives at the same destination!

I hope all genuine holders have a had a good weekend.

GLA

Or at least will be back at that level when licenses are all transferred across to Eurasia. I did recall someone asking what Eurasia had first mover advantage over, i guess you'll find the answer in the previously held areas from Anglo JV days.

Anglo must be kicking themselves for leaving to focus on Africa, i would be!

GLA

Old Koka Kola asset size areas, i presume with the Rosgeo JV we're back to the 36km2 Monchetundra level!

"Exploration Update - Kola



Eurasia is pleased to announce the results of its 2009 drilling and exploration programme, comprising a comprehensive analysis and interpretation of its Monchetundra (36.2km2) and Volchetundra (210km2) platinum group metals (PGM) projects, located on the Kola Peninsula in north-west Russia. Both licences are held in Joint Venture with Anglo Platinum as a 40% shareholder."

https://www.lse.co.uk/rns/EUA/exploration-update-kola-lm3av5onl7erthw.html

Let's hope that there is an arrangement for Volchtundra after Monchetundra is online, just look at the size of that area!!

GLA

How big can WK go i hear some ask -

"Thu, 28th Jul 2005 07:01

Eurasia Mining PLC28 July 2005 ("Eurasia" or the "Company") Company resumes Urals work programme on possible economic platinum The Company is set to resume an exploration work programme ahead of planned testmining for platinum on its West Kytlim licence in the central Urals. The programme will be funded by Anglo Platinum Ltd. ("Anglo"), the world'slargest platinum producer, pursuant to the terms of a joint venture agreement. Earlier work carried out in the area established grades of up to 500 milligramsper cubic metre (mg/m3) - well above the 180 mg/m3 required to be economic. Initial work will focus on drilling and trenching to assess the extent and gradeof platinum within metal bearing sediments in two river systems running throughthe 251-square kilometre licence. Both systems - the Tylai and the Kosva - include river terraces potentiallycontaining un-mined platinum-bearing sediments, as well as "tailings" of earliermining operations which can be reworked to recover residual platinum usingmodern processing technologies."

"251-square kilometre licence"

Oh yes, she's quite the area at WK tbh!

GLA

https://twitter.com/RichardDugdale3/status/1459940813597728778?s=20

It's the old Anglo JV footprint that they're heading back into with WK with the flanks after flanks app process.

There are other PGM and Gold assets in the Urals and don't forget about Volchetundra either near Monchegorsk, Eurasia's asset knowledge and bringing these assets online will prove vital for the green industrial revolution, the raw material demand is going off the chart at present!

They explored a hell of a lot in Anglo JV days, they have quite the geological information archive on a number of Russian resource rich areas!

GLA

The most recent RNS confirms the May asset sale case -

"· Further to the proposal (the "Proposal") from the credible party (the "Buyer") on the potential asset sale announced via RNS on 12 May 2021, the Buyer has informed Eurasia in writing that it has successfully completed its due diligence.

· As announced via RNS on 30 September 2021, since the receipt of the Proposal in May for the potential acquisition of substantially all of the Company's assets"

Forget what some are posting in various places and just stick to what we've all been told in RNS. RNS is the official line of communication between the BOD and the market and us lovely shareholders.

Until these asset sale details surface there won't be anyone come over the top to outbid anything, there will be an exclusivity agreement between Eurasia and 'the buyer' at this point, there will have been since the FSP ended. Once in place a FSP is no longer required.

GLA

That still appears to be the bit a lot appear stuck on -

"the Company has now received several proposals including a proposal from a credible party for the potential acquisition of substantially all of Company's assets. The Board has decided to focus on this potential asset sale."

Stick to RNS and stick to what we've all been told it is, anything else is just an unsubstantiated rumour.

GLA

It's not a takeover, it's an asset disposal. There is quite a large difference between the two and the SP is not relevant to any asset disposals, the assets are valued individually and sold at agreed prices.

SP percent increase isn't even a considered factor when valuing assets.

GLA

"It would also require over 5 million tonnes of nickel sulphate, which Benchmark’s Nickel Forecast shows is 19 times more than nickel sulphate production in 2021."

https://www.benchmarkminerals.com/membership/can-the-auto-industry-meet-ambitious-cop26-pledges/

The buyer will indeed have to dig deep to secure, the rush for raw material assets will go off the chart from here!

GLA

If anyone has a problem with the M&A steps mentioned, do feel free to direct anything you have to say to the source, i'm sure they would be thrilled to hear from you -

https://www.smartsheet.com/content/merger-and-acquisition-process

GLA

May we ended the FSP. They specifically told us what they are focussing on -

"the Company has now received several proposals including a proposal from a credible party for the potential acquisition of substantially all of Company's assets. The Board has decided to focus on this potential asset sale.

The Board has therefore also decided that it is time for the Company to exit from the Formal Sale Process, which has been prolonged due in part to COVID-19 lockdowns-related delays in conducting site visits (as announced on 14 January 2021)."

The reason the FSP is ended is due to this part of the M&A process -

"Draft the definitive agreement. Buyers and sellers work together to draft a final deal.
Enter into an exclusivity agreement. You are now locked into an exclusive deal with the buyer — you can’t pursue further negotiations or solicit interest from other potential buyers."

Then came the DD period which lead to the last RNS -

"· Further to the proposal (the "Proposal") from the credible party (the "Buyer") on the potential asset sale announced via RNS on 12 May 2021, the Buyer has informed Eurasia in writing that it has successfully completed its due diligence."

Then we arrive at these final steps -

"Get final board approval. When the buyer has completed due diligence and plans to move forward, solicit final board approval.

Sign the definitive agreement. Once you sign the final agreement, the deal is closed — you have either merged with or been acquired by another company, and integration begins."

All very easy to follow between RNS and the relevant M&A steps.

GLA

In fact here, save you the trouble -

"· Further to the proposal (the "Proposal") from the credible party (the "Buyer") on the potential asset sale announced via RNS on 12 May 2021, the Buyer has informed Eurasia in writing that it has successfully completed its due diligence."

I only provide the relevant 'third party' info, there is no opinion on such things.

The buyer is clearly stated and due diligence is clearly stated as being successfully completed -

"· Further to the proposal (the "Proposal") from the credible party (the "Buyer") on the potential asset sale announced via RNS on 12 May 2021, the Buyer has informed Eurasia in writing that it has successfully completed its due diligence."

Do provide some third party expert links to verify any opinion you have, then we can check that your source is credible, many thanks in advance.

GLA

Yes CCEP, the part your missing is the understanding of the M&A process, do see the steps i have provided and the third party link which explains the entire thing from our side as a seller. Hope that helps, do take the time to read the whole lot, the buyers steps are also included in the same link, it's why i always provide the relevant link, so people can go through it all and read it for themselves.

I remove the 'i think' entirely by providing the expert third party link. It isn't an opinion, that is the M&A process.

Ref the buyer, potential has been removed, do see the last RNS where 'the buyer' is quite clearly mentioned.

GLA

No problem PostmanPorsche. It's possibly easier to track back through RNS now and marry the steps up to the RNS announcements with the M&A being in such an advanced state if i'm honest. You get to appreciate why the FSP ended for example, which is after this stage -

"Draft the definitive agreement. Buyers and sellers work together to draft a final deal.
Enter into an exclusivity agreement. You are now locked into an exclusive deal with the buyer — you can’t pursue further negotiations or solicit interest from other potential buyers."

No need for the FSP after that stage.

Then comes this -

"Help facilitate the buyer’s due diligence. It can take more than two months for the buyer to complete their due diligence evaluations, but you, as the seller, can help expedite the process. Prepare all documentation ahead of time, and stay in close contact throughout the process, so you can swiftly handle issues as they arise."

What was it, 5 month DD is our case.

Then they progress onto the final stages, which from our RNS statement is the 'advancing several transactions'.

We really can't be far away from hearing what the deal details are imho.

You can learn quite a lot from an M&A process like this one, you can see why the steps are how they are at both sides and appreciate how both sides are protected through the whole process.

I'll miss it when it's all over, it's all helped pass the time nicely while covid has been going around.

All the best to you all!

GLA

Additional interest could relate to Rosgeo JV assets which they currently don't have, but, they are locked in with the present buyer, hence 'the buyer' used in the latest RNS.

The only time someone could come over the top is after these initial deal details come out.

That's the steps they've been following behind closed doors, you can correlate RNS from January to the steps to understand where they were at the various RNS stages.

DD complete as per latest RNS takes us to BOD approval etc, in our instance that requires the info to come to us shareholders to vote on at the appropriate time.

GLA

I have posted this stuff recently to try and help people understand a bit better -

"Laws: Understand the relevant corporate and antitrust laws, as well as securities regulations, when moving through your M&A deal. Additionally, be aware of any exclusivity agreements as you move through the process."

"Phase Two: Hold Bidding Rounds

Make contact with buyers. This can happen one of two ways: the buyer contacts you, or you contact them. Be strategic about who you select — of course, you want to make contact with more than one potential buyer, but don’t overwhelm yourself with options or waste time on unlikely candidates.

Receive starting bids. Once you’ve made initial contact and the potential buyers have reviewed your materials, you’ll start receiving bids. Don’t settle for the first offer, and be shrewd about what deeper information you provide bidders at this point.

Meet with interested bidders. Conduct management meetings with interested bidders to learn more about these companies’ intents, needs, and proposed offerings.

Receive the LOI: Those still interested will send you a letter of intent, in which they explicitly express interest in pursuing a merger or acquisition and provide a summary of the proposed deal. You may receive multiple LOIs from multiple bidders.

Phase Three: Negotiate

Negotiate with all buyers who submit bids. Once you’ve received bids from all interested companies, negotiate. Refer to the strategic intent you laid out at the beginning of the process, and invoke external expertise. Also, by this time, be sure you have all the financial information that’s available, should you move forward with a deal.

Draft the definitive agreement. Buyers and sellers work together to draft a final deal.
Enter into an exclusivity agreement. You are now locked into an exclusive deal with the buyer — you can’t pursue further negotiations or solicit interest from other potential buyers.

Help facilitate the buyer’s due diligence. It can take more than two months for the buyer to complete their due diligence evaluations, but you, as the seller, can help expedite the process. Prepare all documentation ahead of time, and stay in close contact throughout the process, so you can swiftly handle issues as they arise.

Get final board approval. When the buyer has completed due diligence and plans to move forward, solicit final board approval.

Sign the definitive agreement. Once you sign the final agreement, the deal is closed — you have either merged with or been acquired by another company, and integration begins."

Do please see 'Draft the definitive agreement' step of the process to understand the locked in aspect.

https://www.smartsheet.com/content/merger-and-acquisition-process

GLA

They are currently exclusively locked in with the buyer bobby, the M&A process follows the steps stringently to protect both sides interests. They could approach as much as they like, Eurasia are still very much locked in with the present asset buyer.

Several transactions in the latest RNS also tells you that it's very much an asset disposal.

GLA