Member Info for nero120

The EGM to approve the proposed subdivision of shares is on Wednesday at 11 a.m. If the motion passes then the open offer goes ahead with new shares added on the 23rd.

Hopefully we'll also get news as to how much was raised in the open offer, some good news would be welcome before Christmas.

We are entering the end game folks, let's hope the western world can hold things together long enough to get the asset/company sold for a decent price and we can all close the book on our time here. Good luck to us!

Sorry to hear that connect1, really hope we can all get out of this with out taking a loss at the very least!!

DDD, indeed. MC has said that Hannam are conducting the sales process in two stages or "rounds", so I expect we will be notified via RNS at some point in Q1 2023 that round 1 of the process has concluded and round 2 has started. We may also be told that there were x number of participants in round 1, and possibly a minimum offer price (at a guess) to put a floor under the process.

That sounds reasonable squeaky, from a perspective where you trust the board to act in shareholders best interests (which I also share). I suppose to summarise the risks now:

1. Sale process drags on after 6 months and company needs to raise additional funds
2. No acceptable price for the asset is offered (for whatever reason, e.g asset is not valued by the market or a market event occurs causing potential buyers to withdraw interest, etc) and the sales process ends without a sale, leaving the company short of funds and with no clear path forward
3. Board is looking to screw the shareholders (i.e. a conspiracy) and will take the funds received via the open offer for themselves (somehow). Note that both the chairman and CEO are major shareholders as well as Nic officials connected to the Ortega government.

Personally I don't and never have had an impression that MC (or JM) was out to screw anyone, much easier ways to do that than busting a nut as a gold junior for 11 years over a gold bear market. I trust they will do their best to reach an acceptable sale but the main risk in my mind is market conditions. Hopefully they can remain stable over 3 to 6 months at least.

Hirsch unless you took part directly in placings this is not even technically correct...

I missed this piece of info in the open offer RNS:

"The equity markets have been difficult of late and the impact of US Sanctions as notified on 27 October 2022 has delayed financing. A prior offer of equity financing was subsequently withdrawn whilst the Company rejected a secured debt facility."

I assume they're talking about financing the mine build here (as opposed to just financing ongoing operations)? So Condor had an acceptable offer of equity financing that was withdrawn due to concerns about the sanctions, and also an offer for a secured debt facility that the board decided to reject (for whatever reason). Interesting. So it shows that there are possibilities to move forward here but the crappy timing of the sanctions rattled the market. Hopefully these concerns will have abated a little after seeing Calibre recover so as not to derail the sales process.

f7ash Condor are now at the point where the mine is derisked and construction ready, so either we have to commence build ourselves or sell it to someone who will. The government and the local community want the mine built asap. Any deliberate delaying by the company will risk the gov revoking our permits and/or losing support of the local community. If the board and shareholders want to see a return on their investment then it's in their interest to either raise the funds to build or sell the asset.

The board say that raising funds to build will result in excessive dilution, as well as the fact that it is a significant risk to take on the build ourselves when we have no experience in this area and any delay or issue will likely require additional debt/dilution. They think the best option is to go for a sale. MC has stated that Hannam is running a proper sales process with a timetable (suggesting a process of maximum 6 months duration). 70+ potential buyers have been contacted by Hannam and an information memo, financial model and mine schedules have been prepared. There is a round 1 and round 2 of preferred bidders, and we should receive continual updates throughout Q1.

One way or the other, we should know fairly soon whether the sales process is bearing fruit.

No one said anything about being in regular contact or having a relationship. Questioning management is just good due diligence and if you are arguing against questioning management of companies you are invested in then I think that attitude speaks for itself...

I doubt it CF, in fact most of the people that come on here to moan about the share price (that's all they care about) I expect have never considered contacting the management of the company they have invested in.

Probably because they realise they have nothing intelligent to ask and they only question that ever comes to their minds is "why isn't the share price higher?!". Then they might feel like adding some disparaging remark like " onion head" or thinking there is a conspiracy by management against the shareholders. Has to be someone else's fault, says the ego of the half-wit.

If there are multiple interested parties then be sure it will go for whatever the current fair market price is. In recent years mines have been going for bottom dollar, so we'll just have to wait and see what a derisked, proven resource with excellent IRRs is worth in the current market.

Caliber would be crazy not to bid for Condor's asset!

I don't think so punter, MC is in Nicaragua I believe.

Yes Simms, a positive RNS would at least stop the share price bleed. Fingers crossed.

Personally I'm out of stocks for the forseeable, just don't see any upside and too much risk out there. Gold, silver and cash until we're the other side of this recession!

Very positive interview! So this is it Condorians, let us not go gentle into that good night! Let's get this badboy sold and open a bottle of champagne to close a decade+ investment!

Agree goldman! If the Ruskies want a piece I'd happily take their gold! Na zdarovye tovarisch!!

https://firstmajestic.com/investors/news-releases/first-majestic-announces-proposed-sale-of-the-la-parrilla-silver-mine-for-up-to-us335-million

"The La Parrilla Silver Mine is a past producing silver, gold, lead and zinc operation that was placed under care and maintenance by First Majestic in September 2019. Golden Tag is a Toronto based mineral resource exploration company focused on the exploration and development of the San Diego Project, in Durango State Mexico."

So FM have just sold a non-producing mine for US$33.5m:

https://firstmajestic.com/projects/exploration-development/la-parrilla/

"The La Parrilla Silver Mine is 100% owned by First Majestic Silver Corp and is comprised of mining concessions that total 69,478 hectares. The property has known mineralization throughout, with a complex of five underground mines surrounding the mill including Los Rosarios, La Rosa, San Jose, Quebradillas and San Marcos.

The property began operations in October 2004 at a rate of 180 tpd. It recently underwent a fifth major development project that further expanded the mill to 2,000 tpd (from the previous 850 tpd). The expansion was deemed commercially effective on March 1, 2012 and the new parallel 1,000 tpd flotation and 1,000 tpd cyanidation circuits became fully operational.

In September 2019, the Company suspended production which includes all mining and milling operations at the La Parrilla mine. The Company continues to operate a Central Laboratory and a Research & Innovation Centre at La Parrilla."

Yes, have you?

Good post Johngle, I tend to agree with your sentiment! Fingers crossed.

H50 it's not actually as bizarre as it seems. The point has come where we either build the mine ourselves or we sell the asset to someone else who will. The government want the mine built, employing people and generating tax revenue as soon as possible, if we don't get on with building the mine then we have to sell to someone else who will. Condor can't simply go into hibernation and wait for the market to improve, the government will cancel our permits! Yes, timing could be better but that's not exactly in our control is it, and the sanctions really did a number on us.

It is the opinion of the board that there is no benefit to shareholders in taking on the not-insignificant risk of construction, along with attempting to raise the $110m required in difficult markets with sanctions hanging over us. We'd be diluted to hell, and there's no guarantee we could even pull off the build successfully without requiring more time and money. I actually tend to agree. Perhaps if raising the money was easy then we could go for it, but that is simply not the case.

Our only option at this point is to sell the asset, or the company as a whole, for whatever the going rate is in this market. That is the real question now isn't it - what does an economic, derisked gold resource go for these days? I guess we're going to find out.

So I don't find it bizarre, it makes perfect sense why the board have decided to go for a sale. I just hope that someone is interested in buying at a price we can accept (though may not be overly happy with).