Member Info for Metalhead25

Confounded, I agree. After a little mull I’ve taken another £5k at 1.275 and another £5k at 1.29. People who know more about the company than we do seem to believe in it at 1.5, and I do take comfort from that.

Also, this is very speculative but this finance deal (being quite complicated) must have been in the pipeline a fair old while. I slightly wonder whether the peaker close could even have been delayed to justify banging this deal out, thus not hacking off Align. If they closed the peakers they would maybe have had to drop this financing. If this is a correct inference as to what has happened, I would expect the peakers to close after a respectable gap of time (next few weeks?)

Mike, I am thinking about buying some more, but volume very low so far this morning so I’m trying to work out whether the time is now or will we drift down a bit over the next few days. With the Ukraine risk as well I might hold off for a little bit. Could regret it of course but that’s investing!

4 posts ever, all de-ramping Corcel

Goza, that’s true, but it’s true for all companies of this type. And most microcaps companies finance on more destructive terms than this

Good points:
- Plenty of finance arranged, eliminates financial risk to the company for a good long time
- Eliminates risk of financing on worse terms for shareholders (eg a placing into the market would have been at c. 1.1/1.2)
- Insofar as the terms involve attaching prices to shares they are generally at 1.5, which is at a premium to current prices
- Align clearly strongly believe in the company and putting their money where their mouth is
- Close of peaker funding still mentioned as an expected event

Bad:
- Quite a lot of warrants and future dilution

On the whole, I’m happy enough. This is AIM and we’re a micro cap with no income. Financings are going to happen. And I’d much rather it be like this than placing £500,000 to the market at 1.1, and seeing those shares all flipped around that price holding us down for months

Ah ok, thanks Ella

No, there wasn’t! I do think it’s fine. Neither timescale is excessive, and the AA route must be the most likely so it’s fine with me

If so, we want to sell to AA this summer or someone else next summer. That’s fine isn’t it

That appears to apply only within the first three years from AA’s sale to Prospectore? Anyone know when that sale was?

PS I really don’t know why you got that reaction on the other board - I thought your post there was fine, and they’re normally a nice bunch too :-)

I think that’s a fair enough view, although my personal preference would be a deal with AA this summer. Either way, I do think the risk/reward here is very favourable

Hi Cygnus. The risk which I think exists is that all of the following happen:
- AA don’t exercise their option (for whatever reason, and whether triggered or not)
- We then struggle to sell Bushranger to anyone else, despite it being an excellent resource
- We then fall into spending more and more money doing more drilling and other work in the hope of drawing in a buyer

Personally, I don’t think this a very substantial risk, what with Bushranger being large and in a top jurisdiction, and the outlook for copper being what it is

Malik, agreed. And on the subject of Horizonte, a key difference is that HZM are having to raise $630m odd for capex, whereas at Corcel we are envisaging a DSO operation to start off with, with low capex

“What would happen to news if there was an internal dispute in the company?”

Nothing. Reporting obligations treat the company as a single unit, so internal stuff is irrelevant. Of all the possible explanations, this seems particularly low down the list

Yep, all fair and well said, JFrake

To be fair, I think you’ve paraphrased the RNS pretty well. But I suspect what really happened is they used holes 1 and 2 to cover both directions to see which looked more promising (fair enough) and then tried to gloss the hole 2 result a bit. I think the real problem is that neither 1 nor 2 was really any good!

Did they seriously “drill in the wrong direction on purpose” in order to prove it was the wrong direction?? They can’t have wasted one out of five drills on that, surely?

It’s a nice thought, Prof, you never know. One theory that has been running round in my head is that we may have found something which is not a classic massive sulphide deposit but which is supportive of the base of the GRS (at which B1 points like an arrow) being a huge IOCG deposit, in which case the company could be rushing to get the AMT done before going public. Just a random thought, of course :-)

I should have said “production or other realisation event”!

Funkybeats, you will now be forever credited with clairvoyant powers!