Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I think Peter is quietly getting his ducks lined up. It makes sense that the directors cashed out anything they wanted to before a NASDAQ listing also we know that the last week of the month tends to get short volatility therefore it makes sense to combine listing news with the beginning of the month whereby bitcoin tends to rally after shorts expire along with some hopefully unbelievable mining numbers for March. April could be a huge month for the share price!
Here is a quote from the RNS before the fundraiser which covers off the $5m SEC filing:-
The acquisition of DPN LLC (by way of a merger with a wholly owned subsidiary of Argo) gives Argo access to up to 800-megawatts of electrical power, where Argo intends to build a new 200mw mining facility over the next 12 months. This facility will provide Argo with what it believes are some of the lowest electricity rates in the world, the majority of which is from renewable sources.
The consideration for the acquisition was an initial price of US$5M, satisfied by the issue and allotment to the shareholders of DPN LLC of 3,497,817 new ordinary shares in Argo, with up to a further US$12.5m in shares at a predetermined price being payable if certain contractual milestones related to the facility are fulfilled.
Yes the share price movements this week have been disappointing but we have to zoom out for a moment and try and understand what Peter is doing. If there is a NASDAQ application in the pipeline do we want to just be listed as another bitcoin minor or do we want to differentiate ourselves from the others? I’m sure Peter Is also focusing on differentiating Argo as more of a broad blockchain company, hence the Pluto investment so that Argo is not subject to the boom and bust of bitcoin cycles and is therefore more of a compelling investment for prospective shareholders - this has to be the short to medium term plan otherwise shareholders will just cash out when the bull run finishes
Also, Peter has been asked on previous Q and A sessions that they look to do issue of new shares in one go rather than lots of separate ones. With the placing last night the shares will hit the market at the same time as the new ones for Texas facility, which in theory means they have plenty of cash and therefore will not need to do any more placings for some time
If you have read the RNS quickly, please reread for the extra detail. 121 million shares in Pluto at 6p with the same quantity 121m in warrants exercisable at 12p. Pluto is going places and as a shareholder in Argo we get a big slice of this which in turn will grow Argo’s share price. By the time Pluto lists we probably won’t be able to get shares ourselves at 6p or even 12p!
I have just watched this - lost count of the number of times Kevin says he and other institutional investors want to invest in miners with sustainable business models - that has Argon written all over it!
My IPO shares have just appeared in my II trading account - not going to sell though
Good work! I think if we follow Peter wall will be in safe hands! Not so sure the renewables will 5x like this one so far!
This is definitely being held back by the MMs. We have consistently had more buys than sells everyday over the last week and movements in share price do not seem to be as attached to bitcoin as they were a month ago or even gapping up like you would expect them to with the US market. This has got to move up sharply soon!
What I struggle to understand is that for the last five days we have had consistently a lot more buys than sells but the share price is still down. If share price movements are traditionally related to supply and demand how can the price of bitcoin influence it negatively if more people are buying??
Great update by Peter Wall
https://youtu.be/kDMqaai4Gn8