Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
Think the RNS today explains that RHA will be revenue producing by next month so last month's placing could be the last for working capital. PREM has 28,000 tonnes of tailings to get through which should last over 4 months enough time to develop the underground mine and get RHA back to sustainable levels of production.
Also, the $14m loan account with RHA means the govt wont see $$ from rha profit for years. If the govt gives the equity ownership back to prem which by law prem is entitled to it and gives the govt 10% ownership instead, for example, this way they could get a share of the profit from RHA sooner rather than later.
Merger between PREM and MNH if were to go ahead, it could be done by
1. a merger by absorption (eg. Prem buys out MNH)
2. a merger of both to form a new company
3. a merger of wholly owned subsidiary - rha when it starts producing could merge with the manganese asset Otjozondu which is the subsidiary of MNH.
Option 1 cant happen for obvious reasons.
Option 2 timing is not right as both companies still realising full potential of their assets.
Option 3 is a viable option imo as it opens a route to a reverse merger.
Acquiring more of MNH will likely result in some sort of equity swap at subsidiary level imo. MNH like the assets that prem has.
GR did not take into account the expectation of rising revenue from manganese asset in the future. He mentioned revenue at current levels (prior to Dec 2019) was not enough to pay working capital.
Unless sp is at multiples of what it currently is, LTHs will vote against a share ceiling raise. Prem is now revenue producing via the manganese asset plus rha revenue in a dew months meansworking capital is covered for 2020.