Member Info for Shedulike

Mm's "Ongoing support of regional government", let's hope so.

CJ I took it as a general term simply meaning they will have to raise the finance, could be equity, could be the bank depends how much they will draw from their cash reserve. I did think $7.5m at the last count would be tight given their other ongoing operations. Maybe this is partly why the market reaction has cooled off so badly. At least we will have trousered their $100,000 in the meantime :)

Perhaps Denarius plan to open a shop in Glastonbury High Street (scroll down).

https://e-rocks.com/locality/48392/antonina-mine-sobrado-león

I thought that statement cited by CHRI5P was very bold and why I am particularly frustrated that MC hasn't been more active promoting this. Just mentioning that Antonina is part of this means a lot to someone like me or anyone who has researched the potential of the old mine over the road but is just a word to new investors. There is also the suggestion of other prospects on the licence. Also an announcement of this importance should come with a presentation IMO, it feels a bit like we have a decent deal which can unlock the value in Toral but we've fluffed our lines.

So the market initially received the news well but the agenda quickly moved to placings. Not blaming anyone for that we're all entitled to raise our concerns but it is the most toxic word amongst PI's on AIM bulletin boards and it seems to have done some damage. The question is have we got the working capital to see the deal through or do we need to raise? I think Myles needs to clarify this but since LR left he has not seen the need to do any promotional work. Will the third CDTI tranche see us through and can the drilling algorithm be monetised? What do we know about Antonina? There must be data on it - what were the grades, what's left - get out there and sell it to the market. Has 042 hit the target, tell us about the visual mineralisation while we wait for the Assays. I don't really blame people for getting spooked today, there has been a lot of negativity and our CEO hasn't been out banging the drum for this deal.

Agreed, CB was apparently v keen on Antonina but with our resources it was never viable to apply for it. Im sure the Junta will be delighted that we're looking at it now so the IP should be a formality. Myles needs to get out there and explain what the expansion of the prospects offer us.

Read it again you've missed the point.

CHRI5P Antonina is really interesting but it's complicated reopening an old mine. I'd love to know why Denarius have put it up front and centre as part of the deal. It could certainly be one hell of a carrot for the Junta because if they support the partnership they get two mines not one with all the employment prospects that offers for the region. We know it wasn't mined out so I assume the exploration will be minimal but I guess the adits would have to be rebuilt to today's higher standards. I was once told that the resource could even be accessed from the shaft at Toral so maybe they believe it has a similar run of mine model as Toral with the best grades being deep.

WHI's first research was in Dec 21 after they became joint broker. This was following the autumn 21 dilution so it was inevitable that our fair value per share would fall. If you think they they conjured up the number to match the Denarius proposal with all the field work in the intervening period please feel free to live on your planet of choice.

You really must be dreary company Highside. You said that you thought watchers would wait until EUZ went bust and then pick up the licence, I said that any suitors would want an orderly transaction. We have, subject to due diligence transacted on the asset while we are still solvent. Give it a rest you called it wrong, only time will tell what this means for PI's but in the meantime just show a degree of humility, there are good reasons for positivity, look at the facts and cheer up you may even have some more years to enjoy the benefits.

CHRI5P - the mood changed as soon as the inevitable profit taking happened - many traders won't ignore a 5 % profit let alone 50% and who can blame them. I think this will prove to be a good day for EUZ but a lot rests on the significance of Antonina. I have enjoyed researching the old mine but never imagined it would be a prerequisite of a deal, LR once told me that CB was particularly interested in Antonina. Anyone interested can look here https://zh.mindat.org/loc-46509.html as a starter.

I think if I remember correctly that is roughly what CHRI5P predicted but I'll leave that for him to confirm, it is certainly a telling price to yield 80% of the asset. I am not surprised at that but admit I would have hoped for a significant portion of the CAPEX for that sort of % but with a BFS the bank should be supportive. You are valuing Toral on what Denarius are prepared to pay to get in now but for me it is also about what the investment unlocks. We have total Rev near $1b, an EBITDA of $471m confirmed and that was calculated before the updated JORC in 2021 and disregarding any uplift from the current drills and hugely enhanced metallurgy. Denarius have driven a hard bargain but like I said we retain exposure to a valuable asset with enhanced development potential and partnership expansion beyond.

A $6m investment isn't giving anything away however you try and frame it. Not the slam dunk we all once hoped for but it potentially unlocks the value in our asset and intriguingly our mothballed neighbour. If DB and Bennelong are not supportive then I would expect them to bail, let's see. You say that Denarius Metals are almost as dire as Europa were two years ago but they have a cash position of $7.5m of which they plan to sink $6m into Toral and neighbouring licenses, that says a lot to me. I don't have a problem with you being glass half full Highside, it's understandable we've all been through it, but when your negativity slips into gross hyperbole I do have a problem. Like I say nobody is fooled that this is deal of the century but it gives us a pathway forward and exposure to a growing asset and growing mining district beyond. As Mm's posits the stabilised finances should unlock some support from the Junta, plus the completed drill programme means we will get the third CDTI tranche which will provide some working capital in this transition period.

Not really Bricks IMO as an 80% equity fund raise would have raised insufficient funds to move Toral forward. We were always going to have to dilute the asset and the party bringing the necessary cash will get the biggest slice. Of course I would have hoped for a bit more for slightly less % but this should be a turning point. On Antonina perhaps the Junta wanted us to show that we had the funding before issuing the license to the new entity, pointless to rubber stamp it for a soon to be insolvent company.
Mm's I suspect 042 has intersected the high grade area in the expected zone and this is enough for them for now. If it didn't support the theory that the mineralised corridor extends in this way it would have decreased confidence in the mine at depth. Assuming that is the case then the assays will be returned in time. Denarius have got themselves a good deal but they have to shoulder some of the remaining risk, not all projects that get a PFS actually go on to mine, I forget the % but it's out there somewhere. However in the current climate I think it very unlikely that a secure strategic asset wouldn't be exploited in western Europe.

Bricks I find it very unlikely that MC has sprung this on DB and Bennelong. It wasn't so long ago that certain posters were saying nobody would bring finance to EUZ because they could pick up the distressed asset on the open market for peanuts. Well that's been proved comprehensively wrong and while we've had to give a lot away we've also increased the running room in the project. I do think Myles needs to get out there and put some flesh in the bones of what Antonina might mean plus some detail on these 'other concessions'.

Wasn't that largely because of last Autumn's dilution Mm's? The 80% is a lot and I must admit when weighing up these possible scenarios in the past I had hoped it would be less but we need to look at what it unlocks, not just the potential of Toral, but by the sounds of it a greatly enlarged mining district. I'd be interested to know what the further concessions are in addition to Antonina.

I think we're also overlooking that the deal is contingent on Antonina being incorporated into the project. I guess Denarius must really rate it so while we as EUZ shareholders lose 80% ownership of Toral we also acquire another mine on our doorstep into the deal. I would assume that the Junta must have been sounded about this as both parties have done a lot of work only for the Junta not to deliver the concession on Antonina. LR always said we would have first dibs on Antonina but I didn't think it would end up being so central to our future.

Mm's I think you're barking up the wrong tree there, isn't it inevitable that the agreement is non-binding at this stage. For a start it is subject to shareholder approval.

I'm confident it will be over 12p this year. Today will be about trading but we should start attracting some new serious investors onto the register, they will take time to build their positions so I hope there should be sustained demand for the stock, the Mm's will have to get serious about providing proper liquidity for a change. There is also operational news to look forward too and a new JORC which will come this year if they commission it after 042. Anyone know if there's any media in the pipeline?

Yes, interesting timing of the news release. Now we have a realistic financial plan could this open the way for serious EU grants? Seems the Junta want us to crack on at Antonina, I would have thought that there will be significant economies of scale to run two projects simultaneously being just over 1K apart. Remember Antonina only closed in the 80's because of rock bottom zinc prices.