b) Oilex requests the trading halt to remain in place until the earlier of such time as it makes an announcement to the market in relation to the proposed acquisition and the commencement of trading on 15th August 2019;
IF it is relating to the remaining 51.5% then one would need to look at the current cash position shown in the balance sheet. I note the previous 48.5% acquisition was mostly satisfied in the form of shares. IF this RNS is about the remaining 51.5% and the Seller wishes to have the full consideration in the form if cash only then, subject to checking the balance sheet, the question is how is the company going to pay for this.
First time posting here but have been following with intetest.
I am not sure if people are overlooking one point here as no one seems to have mentioned and that is - as per previous RNS the company acquired 48.5 % interest in PEL licenses. In that RNS, it was mentioned that " The was in discussions with the remaining holders in the License to further increase its participation interest in PEL".
I may be wrong but I believe its the acquisition of the remaining 51.5 % interest in PEL that today's RNS is all about.
This is the way I see ( for my own planning) the implied values BASED SOLELY on the expenditure by Newmont. Obviously I would want the market values to be significantly higher than implied values below once the drill results are built in:
Currently, the total shares in issue are as follows:
Total 150m shares Newmont 29.8 m shares (19.9%) Others 120.2m shares (80.1%)
NM will initially pay us $2m plus spend $10m for additional 31% increase in their stake.
So $12m represents 31% additional stake in Omi. This gives implied gross 100% value to be approx $40m.
Hi Bhargav Precisely. What one needs to realise is the amount Newmont are going to pay us and spend on the project leading upto the possible JV (if we are not already bought out by then ) and beyond.
Newmont are going to pay Omi 2m and spend 10m on the project in 2022 in return for additional 31% shareholding (increasing their stake to 51% ) followed by a payment to Omi of a further 2m and spend on the project of 20m in return for additional 14% shareholding taking their stake to 65%.
The point in my own view that I understand is that what would be the implied market value based solely on these expenditure sums totalling 34m if Omi had to earn before it could spend.
Based on my own calculations I can understand, from my own perspective, why I feel Omi could be vastly undervalued and the reason why I am in for a long haul.
The gold price has shifted upwards due to actions by the Fed. The share price of mining companies always move by a greater extent than the movement of the price in gold. If you look at all the various mining companies including Barrick, Newcrest etc, their share price too have increased between 20 to 30 per cent recently