RE: Est webinar7 Oct 2024 22:37
'
I'd like to give a short presentation on eStar to update you all on the work we've been doing and the work we're going to be doing in the near future. And specifically just to remind investors and potential new investors of what we still very much feel is an outsized risk reward profile of the company. I'm going to do this by reiterating that eStar's an exploration company.
Our job is to find commercial deposits of natural resources worth considerably more than the invested capital. And to date, eStar's already done that in spades. Before we get stuck into the presentation, however, I'd like to address something that I think is probably on a few people's minds, being ultimately the VCUBA process, which we've been running throughout the course of this year.
So we initially announced in March that we had intended on running a process on VCUBA. eStar was drawn into that process, arguably prematurely due to an unsolicited offer that was significantly more than our market capitalization at the time. That's a true statement at three and a half P as it is today at one P, even after the capital rising.
Unfortunately, it was with conditions and counterparty risk that the board ultimately weren't willing to accept. We advanced and passed technical due diligence with a number of other parties and have since, especially since the 4th of June update, received further interest in conducting due diligence from at least four other parties, the most recent of which was last week. And so we still see this process very much as incomplete and ongoing.
That said, the management team and board, as was highlighted in the quarterly results, have decided that despite the continued progress in this process, the company doesn't want to be, or doesn't want to continue to be beholden to the timings of third parties. We feel that if we want to achieve a value that provides a greater outcome for all shareholders with timing determined by the company, then it's prudent to spend incremental funds to advance the project, as is the job of an exploration company. This is why I continue to invest in Eastar and have done again so in the last raise.
This is why our directors, major shareholders have continued to invest in Eastar and also why we're able to attract an investment from a very large mining focused fund, typically which doesn't invest in this market cap range. So reiterating again, the risk reward, outsized risk reward return profile hasn't changed. It's as true, if not more so today than it was in March of last year when we were trading at one and a half P and announced that process.'
Part of a Turboscribe transcription
Sign In
Follow the stocks
