Member Info for observer842

Whether we take up the offer or not is going to depend on how our share price reacts: if it could support a placing instead no doubt we'd rather hold on to our EMH shares until the lithium price started to recover!

Exactly @Lawrence. If you have belief that lithium prices will recover strongly over the next few years (as I'm sure KGI do!) then EMH has amazing prospects - it's NPV is one of the most sensitive projects I've seen to the the lithium price, which is obviously not so good on the way down, but great on the way up! ;-)

Indeed @Dallas, and with Lithium prices continuing to be on their knees... We'd be better off selling that (ideally for an improved offer though!) ploughing it into Amapa to take us to 27%, then placing later on (assuming our share price has rocketed) to take us to 49% of Amapa, then selling some of Amapa (potentially all) or CLN, etc to fund the JV's. Sounds like a plan to me. :-)

Thanks @Dallas. I must update my bookmarks to Aquis! LoL.

Who thinks we'll take the offer? Should take the offer? Hold out for an improved one? I'd say if we were in a position to take the offer and on the same day increase our holding from 20% to 27% of Amapa then we should sell a fair chunk. In a recent interview @Kiran suggested we no longer need to stump up the full $3.5m since part of what we have contributed so far will offset it. :-)))

Any idea why a lot of the trades are being put through on NEX @Dallas?

KDNC will need to raise $3.5m in the coming months if their Amapa project progresses according to plan taking their shareholding (if it goes to plan) from 20% to 27%. If there isn't a better offer on the table at the time, it's possible they'll sell all or a fair chunk of their EMH shares. 15.5p going once, going twice... ;-)

@Dallas. According to their page we have 25,341,470 shares, which @15.5p would be £3.93m

https://www.europeanmet.com/capital-and-shareholders/

Though it's possible this is just the start of a bidding war...

@Fingersxed. I suspect word hasn't got around yet...

Wonder if we'll get an RNS?

I suspect the MM's aren't even aware yet. LoL.

Indeed @Barksy. Could be lots of action here this afternoon as the news starts to get around...

The European lithium supplies need securing ahead of the inevitable bounce in prices. I can't believe the timing on this. Fits together so well. :-)

@Fingersxed. Indeed it might be the start of a bidding war! Got to secure those lithium supplies! :-)

Could be the start of a bidding war...

Indeed it is. A very nice option to have! ;-)

Looks like we've (essentially) just been offered 15.5p for our circa 25m shares = £3.9m

"ANNOUNCEMENT REGARDING VOLUNTARY TENDER OFFER BY KGI FOR THE ACQUISITION OF 29.9% SHARES OF EMH" (11. 6. 2020)
https://www.krupainvestments.com/en/announcement-regarding-voluntary-tender-offer-by-kgi-for-the-acquisition-of-29-9-shares-of-emh/
===[
The consideration offered by the Offeror, in cash, per Tender Offer Share which will be validly tendered during the acceptance period is 15.5 GBp or 0.283 AUD. The price represents 9.5% premium to 10/06/2020 closing price of 14.02 GBp or 7.7% premium to 180 day moving average price of 14.31 GBp. If the Tender Offer will be successful and valid, settlement period is 30 days from announcement of successful Tender Offer, which is 10 July 2020.
]===

Who says we will have to dilute to reach 27% of Amapa :-)

(care of EMH board!)

I mean in terms of what is considered fair during negotiations. If the project was clearly worth $10B (it isn't!), then no doubt what the courts would deem fair would be larger than if it were clearly only worth $1m (it isn't!).

Yes, and part of me wonders if this is the reason we've been playing it down... Perhaps I'll keep my mouth shut?

I never did find the court proceedings where 60 days was mentioned. Did you @tomcat?