Member Info for mac4671

All non-binding offers were in by then, that's why it was RNS'd. Some will have been in sooner, but you have to allow the suggested time frame to take place for all interested parties, even if their non-0binding offer landed later than others. It's how a fair FSP is ran, please do explain how it would be done differently?

GLA

23 years, a long time that, well done on the sale.

All we can do is wait and see to be fair, if a buyer like NN moves they send an entire team for DD with specific time frames they want things done by, there's no messing around at that level. Eurasia for any large players team is an absolute doddle to run through tbh due to WK being a short term producer and MT not in production yet. Their main focus will be on Eurasia's ground data for the assets, it's basically a resource buy. The mining plans are all well and good you see, but NN would inevitably create their own if they bought MT for example to match their own needed production targets etc.
With current NN problems at other mines i would expect a very large bid from NN to secure at this stage, they have shareholders to keep happy and it hasn't been too pleasant for them lately with certain events happening. A fast to production open pit mining asset would help with shareholder confidence over there right now.

GLA

How long had you been operating for though kentred?. There isn't a lot at Eurasia to go through tbh, just WK financials, work force etc. MT is just ground data and the current mining plan, so it's not going to take that long realistically. If they had years of complex financial accounts, processing infrastructure at MT etc then i would lean on a longer DD period, they're just not there to satisfy such a long DD element tbh.

GLA

Step 10 will be a long process for a deal size that we expect from Eurasia -

"The average time to finalize a merger or acquisition has risen to 38 days after it has been announced — 31% longer than in 2010, according to Gartner, Inc. Closing dates have grown even longer for midsize deals ($500 million to $5 billion) and large deals (more than $25 billion), which take an average of 106 and 279 days to close, respectively."

https://www.gartner.com/en/newsroom/press-releases/2018-10-15-gartner-says-the-average-time-to-close-an-manda-deal-has-risen-more-than-30-percent-in-the-last-decade

We're looking at the 106 day window there tbh.

GLA

Steps 7,8 & 9 potentially happen simultaneously tbh or at least in fairly quick succession, as B1ll has rightly pointed out the legalities have to be in place ready for a shareholder vote, a binding deal would not be binding without the legalities done.

GLA

Step 6 here was the non-binding stage, we're now in step 7, should be at the end of step by around about now -

6 - Negotiations – After producing several valuation models of the target company, the acquirer should have sufficient information to enable it to construct a reasonable offer; Once the initial offer has been presented, the two companies can negotiate terms in more detail

7 - 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/

GLA

We're basically at the stage which is the most important to the buyers, the stage where they run through all the company's finer details to ensure that they're buying what they think they're non-binding offer is set to buy. With Eurasia that's mainly ground data, DFS, those flank PFS that were handed over with the flanks license etc. Once they're satisfied they table their binding offer, because we have several interested parties only the best binding offer will get put forward to us. If we have to vote we vote, all in favour it moves on to the purchase and sales contract to finalise all the legalities to the transaction.

GLA

Indeed suts, any party who made clear their intentions to UBS will have managed to get their non-binding offers put in. Some parties may have been at the other side of the globe, travel restrictions will have slowed things down significantly for those parties. For a fair FSP time has to be allowed for all interested parties to go through the required steps for them to table their offers.
From the 14th, they simply move from non-binding to binding deal offers, all after the DD of the virtual data room etc. The suggested window for that phase is as per that link 4-8 weeks. We'll soon see if it's an accurate representation of our FSP.

GLA

Because we would include any aggressive outside bidding party. The buyers who have spent months in the FSP have rights which need protecting, not only them but the investment banks who are working on a success fee basis.

You want the info? Go and join the FSP via UBS and table a non-binding offer at a similar level to the buyers who have went through the whole process to date. It is set up for that reason and run in a particular buyer privileged manner to attract buyers to the FSP, to get the further into of the target company you have to go via the FSP.

GLA

From the non-binding offer RNS!

"5. Second Bidding Round and Process Letter II
By deciding on whom to admit into the next round, the process officially enters the second phase. This phase is determined by the opening of the virtual data room as well as intense due diligence done by the prospective buyers and their advisors. It usually covers a range of four to eight weeks and is governed by the process letter II. Towards the end of this phase, the buyers, given continuing interest, must submit their binding offers, which determine who will enter the final negotiation phase."

https://merger-strategy.com/the-non-binding-offer/

GLA

Under the current FSP we won't get any DFS or resource upgrade data. The potential buyers are placed in a priveleged position where they receive more information that is in the public domain. To get in their position an entity has to formally join the FSP and submit a non-binding offer at a similar level, it's a way of protecting the buyers interests from any would be outside aggressive buyout attempt, outside of the FSP that is.

GLA

run straight home with you golden ticket, don't stop until you get there lol -

https://www.youtube.com/watch?v=1Fxq_n8e1qA

GLA

There are value factors you can't value, things like the first mover advantage, last non consolidated Palladium play etc. These things add value but it's up to the buyers what premium they're willing to pay for such things. Standard valuating will only get you to the base level tbh, there isn't enough in the public domain to get any further than that on Eurasia. Bidding war competition adds further value as well, so if most are hitting around the £1 level with valuating, expect higher due to the added unknown value contributors.

All metals are all the EU critical raw materials list, it's another value adding factor, an odd one as it's at the base of a huge industrial revolution, the metals are critical to the revolution taking place. People are already seeing Tesla struggle with Nickel supplies, it's critical to his expansion plans in the revolution, these are factors you don't have in standard valuating, but you know something has to be attributed for them.

GLA

The main benefit of buying Monchetundra from Eurasia is that they've done all the donkey work, it's a pick up and go project, fully financed and fast to production with a set initial output via the ready to roll Sinosteel EPCF. First mover advantage with continued legal exclusivity areas as you expand, it's an absolute prize of a starting position. The choice of using Nittis as an initial position is a stroke of genius tbh, very well thought out by the geologists at Eurasia imho.

GLA

550km2 ftse, plenty pie for everyone -

" The Monchegorsk Complex comprises two spatially separate intrusions, covering an area of ~ 550 km2 : the predominantly ultramafic Monchepluton (~ 65 km2 ) and the mafic Main Ridge (~ 485 km2 ), which are separated by the Monchetundra Fault trending northwest (Fig. 2 inset). "

It's the complex that can be turned into an area to rival the Bushveld, it's very easy to understand when you have the historical geological data at hand, the area is colossal and layered -

https://orca.cf.ac.uk/112128/1/Critical%20Controls%20on%20the%20Formation%20of%20Contact-Style%20PGE-.pdf

GLA

Pentlandite Creek at Monchetundra is a Nickel credit, decent size from what i can gather, it comes into play in the exclusivity zone, so the next flanks app!

GLA

"Personally I expect a sale between 75p and £140." - covering all bases i see, including the mac factor haha

GLA

There's also this to consider, it adds a little value, not quite as much as the mac factor though lol -

The title of the slides for investors prepared by VTB Capital is as follows: "The Last Non Consolidated Palladium Play".

GLA

You need to add the 'mac is a shareholder' value to it, puts the stock on a completely different level tbh lol

GLA

Needs to know about lol -

https://twitter.com/AlexeiBoucher/status/1113364488118468608?s=20

GLA