Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
From RNS:
The conditions to the Project Funding include, inter alia, completion of satisfactory technical, tax, commercial and legal due diligence over a 60-day period during which time either Sheffield or LB Group may conclude a funding transaction with the Company.
“FUNDING TRANSACTION”
From section titled, LB Group
Discussions have continued positively with LB Group in parallel with Sheffield, albeit more slowly than the Company would have liked. The Board considered it was in the best interests of all stakeholders to entertain an alternative offer of funding which could either be complementary to a transaction with LB Group or stand on its own. LB Group has therefore been offered co-exclusivity with Sheffield for 60 days to conclude a funding transaction with the Company substantially on the same terms as the Memorandum of Understanding announced on 9 May 2023 ("MoU").
“…COULD EITHER BE COMPLEMENTARY TO A TRANSACTION WITH LB GROUP OR STAND ON ITS OWN.”
My thinking is that LB Group still want the product but perhaps didn’t want to front up the level of capex required. Some Aussie mates in a successful resources company have a bit of cash and could help stump up some of the capex and invest in the company.
I also think that this provides Capital with a bit more protection from potential aggressive moves by LB in the future.
If they could do something like a 50/50 equity between LB and Sheffield for 50% of the project for linked to a more favourable offtake agreement with LB, I think we might see the growth we’ve been hoping for what feels like a lifetime. An upgrade in resource obviously can’t be a bad thing either.
My thoughts only
They’ve not issued an extension to the MOU which hopefully indicates they are in the final throes of the offtake agreement. Therefore, an extension is probably (and hopefully for a 2nd time) not required.
It’s a trade which is both a buy and a sell! Believe it or not, buys and sells are matched (to some degree) to make a market. If you buy anything, someone has sold it to you. If you sell anything, someone buys it from you. Money changes hands for shares. It’s quite simple if you think about it.
I don’t think the December deadline relates to anything other than exclusivity and does not mean a deal is necessarily imminent within the next week. I also think that a JV will be in Damsilla and not CMET which will not create direct dilution. This will constrain LB’s equity and interest to the “project” only. It’s very likely it will all need shareholder approval once the final details of the deal are known so again, allowing for EGM notification / voting, I’d be very surprised if we hear this week. Exciting times ahead but unlikely that Santa will be bringing a contract. Happy Christmas all.
I think the timing is very interesting. The II ‘knows’ that news on the JV is imminent and would possibly be the last chance to increase its shareholding at a lower price. I would also hazard a guess that prior to to committing to this placing, a conversatuon would have happened regarding timeliness and likelyhood of the jv. Yes, there is additional cash to play with but. it wasn’t asked for by the company so not needed. It was requested by the II and cmet did it for appeasement rather than necessity.
The other thing to be aware of is that since GM has taken over after MF’s departure, he doesn’t seem to use the standard 7am for news releases and will issue intraday. As the saying goes, I wouldn’t want to be out of this …
5.7 average for me so nearly back to break-even and profit just around the corner hopefully. It’s been a slog but I have never wavered that this project would be executed to fruition.
GLA
Keith - there are two RNS’s
Testing January 2024
PG has always maintained a lack of desire to test until it came to raising cash. I still believe he will test as few wells as possible. My guess (and nothing more than that) of the order of events to come:
-MOU of gas sales
-flow test #3
-if successful (success criteria to be defined), use remaining cash to partly/fully fund CNG pilot POC
-if unsuccessful, test #1 etc…
I don’t think there will be any news this year though
Well, according to the September 2022 presentation, it should have been signed in october last year so who knows? Strings have multiple lengths.
Ok, so, what’s done is done.
What is the “best” order of testing the wells for:
a) business case (0.35 bcf/yr)
b) geological understanding
It should be a relatively short programme but news releases aren’t a particular strong point of the company.
I can’t help but think that this action has been pushed by another SL company that has the ear of the GSMB. Having seen the potential of the asset, someone may be trying to force a fire sale through some flaky legislat and clean up themselves. If this is the case, this would also explain the glacial speed at which the GSMB are moving with this if they have to seek additional counsel to ratify and pacify the ‘complainant’. I must state that I have absolutely no evidence of this and is purely theory.
Forgive me if I’m being a bit daft here.
The tr1 is not particularly clear. Are there more shares ‘owned’ by H2G? If so, surely there would be a need to sell more due to the reason;
1)... “to remove any potential conflicts of interest between the two entities and”
If that’s not the case then it looks like pg has just sold some shares…
2)…”to provide funding for the development of H2Green's business.”
And that’s that!
Anyone help or clarify?
It might take a lttle longer now...
https://www.bbc.co.uk/news/business-61807011
It’s all still there. Sri Lanka is having a tough time economically and politically combined with its management of covid. I’m sure all of this has impacted on the timeline. MF has had enough to occupy his time with cooper metals whilst waiting. I have more funds waiting in the wings as soon as we get the news we all await.
Yup. Similar boat at 11.7 ave. I thought ~9 was the floor but hey-ho, I'm still positive - just not sure when things will happen
There have been a few big'ns over the last few weeks. Fingers crossed February means March and not April for some news! I'm still adding but it is getting a bit painful now.
I use Sharepad and under the DD section it shows Geoffrey Brown (RIP) ex holding of 26.4k and Bart Properties... ex holding of 5.5m. I'm not sure when this was updated but didn't notice it last week. It also shows the increases from the placing for the Directors.
It looks like Bart Properties / Scott ***** has sold out at some point between 8th Feb (https://capitalmetals.com/our-investor-relations/shareholder-analysis/) and today as it is showing as an ex holding of 5.5m on Sharepad. The recent raise would have taken them below 3% but no notification. Would explain a lot of the downward pressure on the sp.
I can’t see the mining license being a problem. Join the dots - who rubber stamps the applications and who do capital have undertaking the current auger drilling?