Member Info for raaydaar

Johnnypc why wouldn't Canmax come in with that offer? They get Zulu AND repayment for a lowball offer

Hasiba, I saw the stockbox today, I saw the webinar Saturday, I've seen countless interviews with GR, I've had emails from him and conversations with Fuhad (a name you probably won't know) I understand fully what GR is saying and quite frankly if anyone doesn't see the holes then they deserve to lose money right now

What options Jonjo? Where are they officially announced? They're not! I can't believe the fanboys cannot accept they've been misled and still believe every word that comes out of G od Roach mouth.

Wake up people and look at this objectively

Hasiba, I've been in this game for more years than I care to remember, not a professional but a well aged amateur.

Your post makes no sense it confuses PREM relationship with Canmax and Zulu not being collateral, the 2 aren't related. That's amateur!

Jonjo, I'm not a new investor, I hot burned on RHA et al but came to realise that PREM and ZULU could actually be the real deal so I chucked in £100k however as things progressed I realised through various RNS, social media and emails with the company that GR was doing what GR always does and building up expectations but failing to deliver so I rode the wave to production, selling along the way and banked the profits and now I'm out.

Do I belive in Zulu? Most certainly. Do I believe in GR to lead Zulu? Definitely not. I will reinvest at some point in the future but not with GR at the helm.

It's not disingenuous to suggest PREM could go bust, GR has openly admitted they are "cash constrained" and the numbers I've crunched suggest they're cash critical. Anyone that doesn't think Canmax have the upper hand is deluded, the Chinese are experts in land grabs.

That would rely on Canmax agreeing to a reduced supply which as you know hasn't happened. Yes it can me stopped and minimised but that also relies on adequate grades being produced, right now GR has no clue about the grades, in the webinar he stated they could be SC7 or SC 3.5 one is good, one not good.

Are they? Do they not have other sources they can utilise? Surely a company like Canmax wouldn't commit to supplying Ford on the assumption GR could deliver. They'd do business on the basis of what they know they can supply

Jonjo19 I refer you back to my comments below.

They're hemorrhaging cash mining costs (circa $1mill a month), diesel costs (up to $600k a month), salaries, taxes, incidental costs, the £2 mill won't last until the end of June

Jonjo there's nothing laughable about the comments here, they all have basis, drill and assays mean nothing if you can't get it out of the ground.

The plain and simple single fact here is that PREM have missed the contractual deadline. What happens next is down to Canmax, no amount of speculation about they need the spod more than Prem need them changes that. PREM need cash and quickly.

Deckchair66, if PREM go bust then there'll be a fire sale of the assets, Canmax will have a claim for the prepayment plus contractual interest and the ability to buy assets for sale.

Jenkoo triggering the clause puts additional pressure on GR and puts them in a stronger negotiating position. GR will have 90 days to stump up the cash and that same 90 days to negotiate with the alleged interested parties. These alleged interested parties will know how desperate he is so any deal he can do with them is likely to be no more favourable than any deal he can to with Canmax plus they'll need time to do the required DD and that won't be easy or likely possible in 90 days given the current state of affairs

Snowking, Mark did the job PREM pay his employer to do, if you look at the questions posed on twitter, none of the more "difficult" questions were asked, in fact Mark was actually leading George to get things out that he wanted to say.

1. GR Has known for a lot longer than he stated that there was "trouble at t'mill" They were producing nowhere near the quantity they should have expected to have been producing. If it was a genuine surprise then can you trust a man that can walk I to a warehouse expecting to see 2 thousand bags of "product" and not think there's a problem when he can only see 200?

2. Canmax HAVEN'T agreed to a shorter window from shipping to payment, we're not even sure they're going to agree to take any shipments, today was the deadline for GR to commence shipments, he hasn't company is incurring interest penalties and whether you or any of the "group" like it or not, Canmax can invoke the 90 day repayment period from tomorrow, no ifs, no buts, no GR said, they CAN and if there's no RNS tomorrow stating something else then I'd suggest it's not looking good.

3. Company is cash constrained. Too damned right they are. Gotta love GR comment about not taking part in the placing if he knew yhe price was gonna drop. Too damn right and neither would any of the "institutions" but he would have placed anyway and let someone else take the hit.

4. Added to 3, there will be an EGM to authorise issue of shares GR has made that clear. If he has any sense of business he will have a placing ready to go on that approval. Mark my words, he's already putting the feelers out to see what he can get away with.

5. Parts "believed" to be arriving this week and in maybe 3 weeks if they're lucky. Then some parts need modifications before fitting, mill needs moving so disassemble, move, reassemble, not getting all that done in the programmed downtime.

6. Not GRs fault, it's Stark. George Roach is the CEO he has oversight he SHOULD know what's going on at every stage on every day and be on top of the issues. Instead he's put his hands over his ears, closed his eyes and gone "nah nah nah nothing to do with me"

Company is on its knees and I wouldn't be surprised if Canmax decided enough was enough see them go broke and take the land grab.

Snowking, I guess you'll be buying heavily tomorrow then, I'm not holding sold around 0.92, will stay sidelined until the discount placing announced.

The plant works will take time, filters need to come from the US to Joberg and then Harare, disassembly, movement and reassembly of the mill will take at least 2 or 3 days with zero production, maybe another day or 2 or recommisioning when the plant isnt producing unknown grades. Nothing to see here before July given unforeseen events.

I'm actually a believer in PREM but just a realist. One this placing is out of the way at 0.4 or 0.5 and GR takes a step back then I'm willing to put back in my inital £100k investment but I'll keep the profits. Happy to pay more than 0.5 if I have to but GR needs to go

Chatty, how on earth do you think that a company where the CEO has admitted on video that they have virtually no cash can get access to funds by anything other than a raise?

Snowking, at no point did I suggest Zulu was a security for the loan, as you have stated that is not the case.

Johnnypc said "If you think it’s in Canmax’s interest to see PREM go bust then I give up with you as you’re not being realistic. It’s obviously not"

I stated its not in their interests and it would be in their interests to take the placing, give PREM the money that way and retain their interest in the company.

What Arcadia paid for a mine down the road is irrelevant, PREM by GR own admission are short of cash and everyone knows it.

There will be a placing be it conditional on an EGM vote (most likely in my opinion to get ahead of the issue) or after an EGM and risk going broke.

My thoughts are Canmax will take the full placing at a discount, they keep PREM alive, they keep their interests alive with warrants and re negotiate the offtake deal on more favourable terms.

I've just said Canmax could provide the placing funds and get a few billion warrants that keeps their interest in PREM alive and keeps PREM alive. Stevie Wonder could see that as a possiblity

It's a serious possibility, Canmax could well be the first approached to raise and could give GR the money that way and maybe get a few billion warrants in the process. As for the $34 million plus interest I hadn't thought about it but now you mention it I guess they would have claim to some of the assets in such a situation or would be paid from the sale of any assets

Chatty, GR has already alluded to the fact that PREM is virtually broke and actually doing it in advance of an EGM would play into GR hands "vote in favour of the increase or we go broke..." who would risk delisting over approving a placing? He would get the headroom at an EGM anyway so it's a no brainer from his perspective

Its done on countless occasions by countless companies on AIM and the NOMAD would most certainly sanction such a conditional placing and Beaumont Cornish has on many occasions, ANGS springs to mind (I think was around December last year) and I'm sure there's been plenty more since then

Technically they can do a placing and make it conditional on approval of the increased headroom at any EGM.

If GR is concerned that they won't have enough money to last until the end of June it would make sense for him to put things in place so he can have immediate access to the funds on approval at an EGM rather than call the EGM, get approval and then go to the market.