email from Brett3 Apr 2018 20:26
We had an unexpected problem with the AIM market deciding that StratMin would ned an additional GBP5 million to list. This was obviously going to create significant dilution and was not supported by key shareholders.
Following this hurdle being set very late in the process, we met with the NEX Group in London and they gave us a pre-eligibility clearance to list on the NEX Growth Exchange without an enlarged working capital funding. This is being used as a stepping stone to a main board listing in London under the European Union regulations for a �Standard Listing�. The NEX gives us two advantages, it maintains the tax concessions for UK investors and enables us to establish a clean UK PLC group to take to the main board listing. It is also about a third of the cost of an AIM listing which ultimately means more money in the ground testing.
We have today executed a revised agreement with Titeline Drilling in Australia to cornerstone the NEX listing.
The Scheme Implementation agreement with the change from AIM to the NEX has been executed and the revised Scheme is now in front of ASIC, the Australian Regulator for approval.
We hope to have full shareholder documentation circulated in the next week with NEX listing immediately after the shareholder approval.
Peterhouse Capital have undertaken to provide a minimum of GBP500,000 alongside Titeline and our other investor interest. This will be added to the receipts from Bass and a tax recovery of EUR700,000 which dates back to pre Graphmada operations when StratMin was a trading business. The budget will enable us to complete the drilling program required and fund the listing of the company on the main board of the LSE.
We are also in due diligence now with a number of major international gold producers who are looking at collaboration in either a JV or equity participation in the Specimen Hill project in Queensland. Ideally we will bring one of these discussions to a successful contract alongside the listing on the main board.
The technical team continues to work up Specimen Hill. The final drill targeting analysis has been completed by our geophysics contractors and is now being modelled with the drilling team. We will have rig availability from early May to begin drilling as we complete the NEX listing.
It has been a very convoluted deal and the about turn from the AIM team caused us a bit of anxiety, but we are now confident that we have a better long term solution with a main board listing, away from the problems of the NOMAD system on the AIM.
As all of the management team are equity incentivised, we are pushing ahead as quickly as we can to ge the listing done and run the drilling program to post up the maiden JORC resource.
Regards
Brett
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