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I know lots of investors won't hold shares in a company that has a financing (death spiral) facility as they've seen what it ends up doing to the share price. There's numerous examples on AIM

They failed to get a placing away at 0.12p which left the company in a very vulnerable position so they took the Lanstead facility as a last resort

Coyote - just read your summary of the facility. As well as the fee of 93.7million shares, Lanstead also retains 25% of the proceeds of the 930million shares that it sells into the market that's about 2 to 3 times more expensive than the commission a broker takes for arranging a standard placing

There seems to be a general lack of experience on here about how these types of facilities usually play out and impact the share price. Best to do more research on other companies that have used them. Initially people tend to think news will come to rescue the share price but the very fact that a company has to resort to a facility like this is a sign of desperation

The Lanstead facility is like a placing but spread over 24 months. Each month Lanstead needs to sell shares into the market to finance payments to Oriole. Plus Lanstead has been given an additional 83,700,000 shares. The costs of the facility are far higher than an ordinary placing as Lanstead take a much higher percentage of the funds raised by selling shares.

Legalwolf you are correct that the monthly payments are designed to fund corporate overheads and not pay for drilling

Also if there was positive news in the pipeline the company would have held off raising funds until the news was released and the share price and appetite for investing in the stock was higher

I made it simplistic so other people could understand how the facility works. Lanstead makes a big profit no matter what.

Oriole only does well if the share price is above 0.2355p buth these type of facilities usually results in a big fall in the share price due to the constant selling pressure from Lanstead/Riverfort etc. It's hard enough to make money on AIM but if you buy shares in a company with a funding facility then it's even harder and you're far more likely to make a loss

At the current share price Lanstead would receive £1,520,550 so a profit of £474,150 which makes it a very expensive facility for ORR shareholders

At the current share price I calculated that the company would receive £43,600 per month. So if you extrapolate that over 24 months ORR would receive £1,046,400

Very sorry to see the company has had to resort to a death spiral funding facility as it failed to get an ordinary placing away 🙁

I've seen these Lanstead facilities in action on numerous other companies and they tend to destroy the share price as Lanstead continually sell shares in the open market to fund the monthly payments owed to the company. The 0.19p premium mentioned in the RNS is just a spoof in trying to fool people into thinking it is a good deal 🤦

The reason for the fall has now been revealed if look at other platforms where the company is discussed :-((

Dan even said Kouroussa has already been running at nameplate capacity on some days.

The last 3 quarters have been a great turnaround at Yanfolila and now we have Kouroussa to drive the company forwards

How can the CEO justify a salary $278,000 (from 2022 annual report) when there is so little activity?

The company hasn't even bothered releasing a Q1 production report. It would be reasonable to expect it in April or early May but we're now into mid July 🤷

I know the market cap looks low but it gives a false impression as the bank debt is around $4million and the interest payments are much higher due to the massive increase in interest rates

Hopefully see a decent rise tomorrow now funds have been received from Togo

Shame it is suspended as I think we'd have seen a decent rise on the back of the receipt of $1.7 million RNS

Take profits then and put them to work in RRR.

There's nothing to suggest the TiO2 will be worth anything. Try and find a mine that only produces TiO2 at those sort of grades

Wow, that's fantastic news. Didn't expect that so quickly. Some were saying the funds would never be received 😉

Yesterday's RNS from EEE was a nothing burger. The TIO2 grades don't look economic even if it's a big deposit.

Any idea who the big seller is? There was a large sell yesterday of 432,159 at 6.01p

The market cap hit around £30million in early 2021 yet the company's core assets in Cameroon are far more advanced than back then. ORR has been very successful with exploration in Cameroon to date. The current market cap seems ridiculously low to me so I've been building a position too as I'm confident we'll see a significant re-rate at some point