Member Info for shauny86

Unless they were worried about the deal going through it would almost be pointless those linked to RAM would bother to buy more Zanaga shares.. you're basically buying a small part of the 12.5% pie.. whereas they'll have a much bigger portion anyways..

Could be the actual numbers haven't been updated..

Supposedly none of our significant shareholders took part in the recent fund raise.. makes you wonder who on earth did..

Pre fund raise:

Greymont Bay I LLC3 152,131,783 18.28%

Gagan Gupta 48,032,071 5.77%

Guava Minerals Limited1 79,907,592 9.60%

Regatta HCRP I LP3 58,139,535 6.98%

Everblue 2020 I LLC 36,250,000 4.35%

Post fund raise:

Greymont Bay I LLC3 152,131,783 15.35%

Gagan Gupta 48,032,071 4.85%

Guava Minerals Limited1 79,907,592 8.06%

Regatta HCRP I LP3 58,139,535 5.87%

Everblue 2020 I LLC 36,250,000 3.66%

Food for thought, if we'd raised $25m at 8p, we'd need 233m shares. That would have taken us to 1,065m shares. Obviously it doesn't take into account any of the Director settlements, but these were minimal. Instead we're looking at 991m shares. So for the sake of a further 75m share dilution, we've gone with a seemingly crazy deal that potentially gives 87.5% of Jumelles away.. plus then diluted by 17% anyways... hmm...

That's my thinking.. and I also think it leaves the door wide open for a bigger entity to come in, potentially closer to the FID.

Something has changed between the deal being announced and them shouting about how they didn't need to dilute by 30%.. no we just waited a few months until the share price halved and then diluted by 17%. Suddenly we needed $6m after bulk sample expenses? Yes cash was low, but with FEED covered, we shouldn't need $6m to run the company for 12 months. Whatever that change, Marty is keen on taking $270k of shares. Maybe he's looking forward to the 0.5/1% royalty for the next 30 years.. doubtful.

For me, it's more about why the company raised $6m in addition to the bulk sample work costs, especially when FEED is easily covered with $15m-$25m of the sub-tranches. There won't be many additional costs in the next 12 months, other than FEED related costs. The first 3 sub-tranches at $15m+$4m can cover FEED and give the company over $2m to run the company for the next 12 months, plus $0.3m in the bank already.

Has Marty chucked in another $270k in the hope that we retain 12.5% of the company? If he has then surely the deal MUST be good? If it's for any other reason, again that reason MUST be good.

Ex, that might be your interpretation but its very clear that tranche one needs to be completed in its entirety for RAM to have tranche two option. ‘Final sub-tranche’ would be sub-tranche 5. If they only take 3 sub-tranches they only get 12% of Jumelles and can’t take tranche two. It also means Zanaga can then revert their Jumelles share into Zanaga shares at 15p.

I can’t think of any other reason why the company raised $6m after bulk testing costs other than to put it with RAMs $15m of three sub-tranches. That is FEED paid for and zero need for a further $10m.

The story certainly isn’t over here.

$6m + $5m + $5m + $5m = $21m

Covers FEED with only three sub-tranches of tranche 1, plus our funds after bulk sample. If RAM don’t take all five sub-tranches, they can’t take tranche 2. Zero need for any more sub-tranches after the first three as we don’t need $31m. FEED is $19m. I don’t think Marty took $270k Zanaga shares in the hope we retain 12.5% of the project in the next 12-18 months.

Far more at play here than we know..

No one worked out why they raised an extra $6m.. sub-tranche one could be taken end of July early August.. $5m in the coffers.. almost zero need for the $6m unless you add it up..

$5m seems a bit excessive doesn’t it to ensure they have enough for next 12 months if deal doesn’t go through..

I wonder why they raised $7.7m when the bulk sample is $1.6m and RAM will reimburse up to $2m so assuming $400k contingency.. People need to start doing some sums and work out what is happening here..

Bit of both really.. someone bailing out, someone loading up.. shares have to come from somewhere..

Feels like we're not much further ahead given the last 2 years.. this is the price Glencore exited, all the work that's gone on between then and now, and we're still effectively in the same position.. You wouldn't think a deal was on the horizon in July or a FID is down the line in Q2 2027..

Millerston, what happened to the multiple entities the board were in discussions with.. they dangled that carrot for the last couple years..

Either that or they willingly sold out for roughly $15m-$20m instead of holding onto a multi-billion $ resource..

Two pipeline option means CAPEX is much cheaper going into Stage 1. Unless a big investor comes along. I would assume they want to keep costs down for Stage 1 so IF it comes to it, our $125m can pay for our 12.5% equity towards the project.

This line sums up the drop today: West Coast Silver has reported a JORC (2012) compliant MRE of 2.79 Moz silver at 617 g/t Ag, comprising 0.37 Moz Indicated and 2.42 Moz Inferred.

There is a big difference between indicated and inferred. If you do the sums on the indicated, the amount isn't very much at all (30% for UFO), and in which case the market cap seems to be adjusting for this reason.

In which case could we safely assume that no offers of 15p and above have come in for 100% of the company? Which makes the RAM deal the only deal that has ever been on the table to see this project through to fruition. As you said there are still risks, could f up, political, global changes etc. So why would we think there is possibly anything better to come to the table?..

Technically the RAM deal is worth around £7 per share over 30 years IF we use $125m to fund our part of Stage 1, and IF we hold onto 1% of the royalty. Considering LOM could be 30-100 years, you could be looking at a multiple of that £7 per share. Many generations of your family could benefit. If you take that into account, and then look at say Elphick's holding of nearly 80m shares. His shares could be wroth £560m over 30 years, and potentially double/triple that depending if LOM is 30-100 years. You're talking generational wealth being created.

Keeping that in mind, what sort of offer could take the lot off the table in one swoop? I don't think £1 and below would cut it. Have we already had that type of offer on the table? 50p per share.. £1 per share. How would we even know. It would be good to have some transparency in that regard. What would the company attribute to 'massive value' and what value/amount would take 100% of the company in one go.

I'm of similar thinking. The deal drew a 'line in the sand' as the company put it. In which case any other entity is welcome to enter the mix on similar terms or their own terms. The upside to the RAM deal could be £7+ over 30 years per share. Let alone if this resource has a 50-100 year LOM. I know that's not an outcome some would want here as you don't necessarily get to enjoy that. But, my children certainly will, and potentially if their children and so on.

The downside to the RAM deal is we receive 11p per share for the $125m and 4.5p per share for the $50m royalty buy back. I'm sure no one was here for 15.5p per share and a 0.5% royalty that is so tiny it may as well not exist. Alone the 0.5% royalty is worth around 36p over 30 years. Pointless. And I believe this is why the market is stewing around this price. It's looking at this downside, which is hefty.

Let's see what the next couple months will bring. We are far overdue an update for Feb and the previous quarter.