Member Info for oldspursfan

Morning "optimist"
So notwithstanding a feeling in your gut and a finger in the air guess at how long a FSP for a company like EUA ought to take, anything else underpinning your assessment it is in trouble? And what does trouble mean in your book?
Thanks in advance

Hi CAW. No worries mate I meant no offence, guess it's just horses for courses. I'm in the camp of using shares in exchange for the missing ownership of WK &/or MT (as you'll see from earlier posts) but only because I can see other ways of doing what you suggest. Ultimately we wont know until the BoD confirm, so your guess is just as good as mine (and better than a lot of others I may add...)

Either way if nothing happens between now and the AGM then it will be a bit of a damp squib.

Nothing tonight then, so enjoy the BH weekend (message to all).

Hi CAW. Not sure any JV in Russia will be with EUA as registered in London, but with the local (to Russia) subsidiary. The Executive members of EUA's BoD will also be directors of the subsidiary company so it's still their signatures needed.

I guess it's a case you say split, I say restructure and/or transfer!!

Hopefully we find out a bit more in the next 2 hours!

Only issue I have with the spin off theory is that most companies go down the wholly-owned subsidiary route to house discrete assets. EUA have done that already, as their annual report states the WK and MT licenses are held with ZAO Terskaya not at EUA Group level. They have yet to specify where the Rosgeo ventures would sit, legal entity wise, but then that hasn't really started yet, it's an exclusive option so if retained we'll find out in due course where it will sit within the Group.

HL company information page lists the following: "The Company's subsidiaries include Urals Alluvial Platinum Limited, ZAO Eurasia Mining Service, ZAO Kosvinsky Kamen, ZAO Terskaya Mining Company, ZAO Yuksporskaya Mining Company and Eurasia Mining (UK) Limited."

If specific licenses were to be sold it would be more cost effective to sell the subsidiary, or if needed move the assets between the existing legal entities, or set up new ones, and then sell them as discrete, independent companies for an agreed level of compensation. That should not involve the parent company (EUA) needing to enlarge the number of shares in issue that are available to investors (total share capital).

Interesting, just seems convoluted and not the way I would envisage a partial sale happening.

Indeed Dance - you got the correct "student" reference from "Kung Fu" back in the day! I thought about YoungSpursFan, but reckoned it wouldn't age that well!!

Chelski's run-in is, quite frankly, horrendous so there's a chance of overhauing them. Think we'll just end up coasting into a Europa League spot though

Haha you're welcome Dancesca (or should I say "Grasshopper")?

Bumble you're correct it isn't so much the ability to allot shares, more what are they going to get in return that is of interest. Hopefully we find soon, whether just for cash ("Placing" RNS - boring IMO!) or in exchange for something else ("Acquisition" RNS - more dots to join!).

They have had a few weeks to iron out the agreement, whilst the EGM notice period was in effect. You'd think they would have got it to near-signing by the EGM. Would be good to announce today, to give us something to chew over the long weekend.

Fingers crossed. GLA

So essentially if you are holding money aside because you want to buy into any forthcoming issue of shares, you're wasting your time it's unlikely it will go that route. Any shares placed will be direct with whomsoever the Board need to take them.

Worth mentioning in the context of the rights issue that there is a line in section a) of the resolution which states that, whilst the rights issue would be to existing ordinary shareholders and holders of other equity securities, it's also "but subject to exclusions or arrangements as the Board may deem necessary or expedient..."

In short, any allotment of shares are unlikely to be coming our (PI) way. This clause was in previous AGMs, and the last placing for cash in August went straight to Institutions. We also agreed via the EGM vote for the Board to bypass our right of first refusal, too, so underlining it.

Well said Crabby!
I actually found last night quite enlightening, in particular that TMS believes his position of FSP failure is equivalent to LTH hoping for success. There's a long list of potential outcomes, only one of which is failure. For example:
> Success via sale of an asset (one or more)
> Success via sale of an EUA subsidiary e.g. TAO Terskaya
> Success via a full company sale (all existing share capital)
> Success via a JV or Farm In to one or more existing assets
> Success via an integral role in a multi-national consortium exploiting the whole Kola district, linking in for example Japan, which recent RNS's mention

And I'm sure many others including outcomes we haven't yet thought of (feel free to add).

And there, right at the very bottom, is total failure of FSP (no offers, no anything, as you were lads). One option out of many. It hasn't finished and nobody has walked, so still all to play for, but I fully believe balance of probability is very much in success of some kind.

And don't forget we have Sinosteel and a route to MT production if worst comes to worst, so failure is not a total wipeout.
GLA IMO

Novice20 - not necessarily mate. That's just the next planned meeting. If the FSP comes to a head quickly another GM can be called it only requires 3/4 weeks notice.

In fairness Twisted, the activation of Sinosteel would count as a curve ball at this stage!

Not sure anything re MT specifically is expected - WK Flanks application is being processed so something about that is kind of due (next few weeks maybe?). It's the BoD's intentions re share issue that's next up and should set the scene for hopefully the final act.

Portsmouth - it's to my mind the next RNS that is now key.

What the BoD will do given they now have the green light. That should give pointers as to how things are going and whether, as we hope, the end is nigh...

Got a sandwich board lying around somewhere, must go find it...

Thought originally they would be included as noes, but it appears they will be disregarded. It's % of votes CAST that matters for these sorts of resolutions, not % of total voting capital.

That's why I said shares, not cash - we wouldn't be paying the buyout price - the buyer would. Shares would be relative to a number of things: initial cost, investment put in, and proportion vs EUA's holding and other assets (all of which are currently sat at 27p per share in total).

The incentive for the other parties is short term monetisation of their interest at a significant profit, and premium to its current value, and not having to deal with whoever is buying the mines outright. Incentive for the buyer is full ownership (so cough up matey).

I may well be wrong, but it makes sense to me. We will soon see! GLA

Ryan - they couldn't afford me haha!

Yep final straight in my eyes, but still have due process. Doesn't look like my last reply made it (apologies if it appears again!)

Still think there won't be a cash raise per se, but the Bod will (at the request of the buyer) issue shares to directly acquire the outstanding interest held by other parties in WK and MT so taking their ownership from 68%/80% to 100% ready for full buyout. In which case order of RNSs IMO

Today - EGM resolution passed and shareholder Q&A link
Within next couple of days (as this all appears time-critical) - notification of issuing shares: how many, to whom, for what purpose.
Couple of days later: New shares hit the market - updated 2.9
Within a week of that: Board Recommended Offer and FSP Closed (Yay!) Notification of another GM c.3 weeks afterwards, and circular with this resolution presented to vote on.

So a bit more to go, but eyes down for step 1 today! GLA

Think we still have some time left, but agree the countdown starts today. Feels a bit like an acca with matches spread over different times/ days and you're sitting there watching each piece (hopefully) come in one by one!

Still think there won't be a cash raise, but the BoD will, at the request of the buyer, issue new shares to acquire the remaining percentages in WK and MT held with other parties (so taking our 68% and 80% stakes up to 100% ready for complete buyout). In which case my order of proceedings would be:
Today - EGM outcome: pass, and Shareholder Q&A
Next couple of days - notification of issuing shares ("pursuant" to today's EGM) - how many, to whom and why
Couple of days after - new shares hit the market - updated Form 2.9
Within a week from that - Board Recommended Offer RNS and FSP closed. Whoop whoop! Another circular/ EGM set up for c.3 weeks afterwards to vote.

Eyes down for step 1 later today! GLA

Cat thank you I wasn't going mad! Though Bread was long forgotten in my mind I'd never have got there...

Pewee, I think your attempt suffered by picking a rather obscure quote from only fools (one I still can't place tbh)

Perhaps "during the war" or "nice and cool son, nice and cool y'know what I mean" may have been better recognised. Even sticking it speech marks would have helped!

Whereas Youngman... Was v. funny well done all

Just to add that whilst viewing the egm isnt possible, the BoD are intending to publish responses to the questions submitted. Expect those in the run up, maybe close tuesday/ first thing weds