The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Get in tomorrow mate. Finance news and the big diamonds news in pipeline. Volume going up big and all technicals pointing upwards. After being cynical this morning I must admit I finally got in at 0.32p for 1M shares. Go with the flow. All the way to 0.55p even before diamonds news. Gla
Signature before year end. Meantime fill your boots when you can and watch the baita developments. Hopefully we get to see the pictures of first load of ore mined from baita soon. I'd love to buy in again at 0.29p if I could. Atb
Attached to the Bonds are warrants (“Warrants”) giving the warrant holder the right to purchase in aggregate US$3,750,000 worth of Ordinary Shares at a fixed price of 0.26p per share (a 30 per cent premium to the share price at which the most recent equity raise was carried out). The Warrants will be issued on each Issuance Date and will be issued pro rata to each Bond issuance. The rights to exercise each Warrant will expire on the third anniversary of each relevant Issuance Date.
Is what is holding this sp back.
Subject to the Company fulfilling its obligations under the Deed, the Deed has been structured to give the Company the ability to repay the facility in cash with no conversion, on account of ongoing refinancing discussions with the Swiss Bank and others. The Bonds have a non-conversion period of six calendar months from the First Issuance Date or, if Atlas so elects (the “Election”), 12 calendar months from the Second Issuance Date (as explained below). In the event that the Election is not made the Company may, during the non-conversion period, prepay the Bonds together with accrued unpaid interest at their par value or, if greater, at a premium reflecting the excess of the share price at the time of prepayment over 0.24p.At any time prior to the Second Issuance Date, Atlas may elect in respect of the Bonds to be issued on the Second, Third and Fourth Issuance Dates (the “Zimbabwe Bonds”) that the non-conversion period in respect of the Zimbabwe Bonds be extended to 12 months from the Second issuance Date. Atlas has already given the Company their intent to make the Election. Once the Election is made the Zimbabwe Bonds will be repayable at a price equal to 200 per cent of the principal amount of the Bonds so redeemed together with any accrued and unpaid interest (the “Premium Amount”) at any time up to the anniversary of the Second Issuance Date. If the Zimbabwe Bonds are not repaid at the Premium Amount by the anniversary of the Second Issuance Date then Atlas may thereafter exercise the conversion rights in respect of the Zimbabwe Bonds. Further in the event of the Election, provided the Company’s targets are met the Company will be able to avoid shareholder dilution by electing to settle the Premium Amount from cashflow projected to be generated from the Diamond Concession.If a conversion right as explained below is exercised the Company can elect to cash settle the conversion notice with the result that no additional Ordinary Shares would be required to be issued.
In the event the Company does not cash settle when a conversion right is exercised, the Bonds which are eligible for conversion, together with any accrued but unpaid interest, shall be convertible at their par value into free trading ordinary shares of the Company (“Ordinary Shares”) at a fixed price of 0.24p/share (a 20 per cent premium to the share price at which the most recent equity raise was carried out) or at a price per Ordinary Share equal to 90 per cent of the Volume Weighted Average Price of the Ordinary Shares on each of the previous 20 trading days. If the Election is not made, Atlas is restricted, subject to certain conditions, in exercising its conversion rights following the end of the non-conversion period to the exercise of up to a maximum of 10 per cent of the nominal value of the Bonds outstanding at the end of the non-conversion period in each month.
Staff Reporter on November 6, 2019
MUTARE– Zimbabwe Consolidated Diamond Company, which is in line for a major joint deal; with AIM listed firm VAST Resources, has revealed that the deal is now imminent.
By Donald Nyarota
ZCDC chief executive officer, Roberto De Pretto has said a deal has already been agreed with VAST Resources, while government is finalising the final joint venture agreement.
De Preto said the only sticking issues in the deal are line ministries that are involved for a joint mining venture, which will includes a community shareholding in the new venture, Katanga Resources.
He said they were hopeful that they will ink the deal before year end to enable them to hit the ground running and start production on the new site.
“We actually follow a set of procedures, we got documents that need to be completed and signed, unfortunately we have to follow due process and that’s what we’re busy with at the moment.
“We have advanced quite a lot and we are now just waiting for the final stages of the process to be completed before we hit the ground running,” he said.
“I can’t talk on behalf of other ministries because it requires input from the Ministry of Mines, Ministry of Finance, its a whole lot of groups that need to sign on the deal, but we are hopeful that this will be done by year end,” he added.
De Pretto said the firm’s direction was indicative of the new thrust to put community needs at the centre of development, as they have been given a social licence to operate by the community.
“ZCDC is a responsible mining company we listen to the community. We will attend to the needs of the community because they give us the social license to operate, we are in partnership with the community and together we will walk the path,” he said.
De Pretto said the signing of an agreement between VAST Resources and Chiadza community is historic in advancing community benefits from natural resources.
He said to ensure the ease of signing modalities VAST Resources signed an agreement with the community to form Katanga Resources, the joint venture partner for ZCDC in the new agreement.
“Chiadzwa community signed an agreement with VAST Resources, they formed a new entity called Katanga Resources which then came to ZCDC and we signed an agreement with them so its a back to back arrangement.
“We have one to one with Katanga and what is exciting about this arrangement is that it is the first time in the history of Zimbabwe that a community will have a shareholding in a mining company, we are pioneering something which has never been done before.
“There has always been trust funds or trust deeds but now they are shareholders owning a piece of the company, we are so excited about this development what we are hoping for now is the acceleration of the final deal,” said De Pretto.
Topped up at 103. 101p proved to be the bottom before as well but once that gets knocked down there could be a dramatic fall. This is being heavily manipulated/shorted. Will load up again if it drops below 100 or happy to ride upwards with my earlier top up. Gla