Member Info for steward1

Again, if you mean that Prem doesn't put anymore cash in and there is no associated Prem share issue then, on the face of it, it sounds fine but it's a basket case and I'd write it off.

Sounds sensible if you.mean that there is no more cash from Prem put into it.

If I was giving GR some advice now, I'd be saying to him that he needs to get on the front foot with some better communication about how the cash raised will be used, when he expects the RUS and what the plans are for the EPO area in particular. We and the rest of the market would be re-assured... as long as the plans are sensible... which leads me to....

I shiver at the mention of MNH and RHA... surely, GR is not contemplating using any of the funds for either of these projects? It has to go in to the EPO area. If he has given up 2% or 3% of Prem to buy MNH or to re-start RHA, I'd say that it is probably one of the worst decisions that he has made. I reckon the sp will plummet yet again!

If GR is reading this then he has to think of the £12m as being worth 13.3% of the future value of PREM so if he really is going to spend £2m on MNH then it's 2.2% of Prem. If Prem is going to be worth £200m, £500m or £1b in the next year or 3 then the cost of MNH will be £4.4m, £11m or £22m PLUS 2.2% of whatever dividends come... if he is going to get £100's of million profit from MNH then that would be great but????

The above uncertainty and suspicion really shouldn't exist!

Everyone has their price! 10p - I'd be very tempted!!

I've calmed down and promise to behave myself today.
My view about the buying in Feb is that it may not have been Suzhou - price went well above 0.4 so I suspect that someone else or some others bought a big chunk. That's one reason why I think someone is going to disrupt this deal with a better offer.
Whether it was Suzhou or not, I think that they will be angling for a bigger, controlling share in due course... they didn't settle for just Zulu in this deal, they see the potential in the rest of Prem, i.e. the EPO area, and the deal was for 13.3% of Prem as a whole. OK... I admit that this is a real positive (GR could have made more of this in his comms and interview!) but I think GR needs to be thinking about how he defends Prem from a premature takeover at a bargain price.
We need those assay results and we need the RUS and we need some info about the content of the EPO area... the best defence is for the sp to accelerate north!
In case anyone is any doubt, I still see Prem as being well undervalued even at 0.4!

Snowking,
I get all that you've set out but there are two big flaws in your argument
1) you haven't considered the other side of the equation. What is Prem/are we as shareholders losing in giving up 13/3% of Prem? We have to give up something, of course we do, but giving away 13.3% of PRem and all associated future income (Zulu, EPO... lithium, gold and whatever else... potentially Circum but hopefully not MNH or RHA) is a bigger loss than giving away a part of Zulu. The guy who negotiated this at Suzhou will be getting a big bonus!
2) you haven't factored in GR's track record - enough has been said about that today.
This deal is not the best deal for us - it is what it is though. I'll concede that it should take us forward.
For it to work, GR needs to be more focused on delivery and he needs to be more candid... Whenever further negotiations take place he needs to be armed with as much evidence as possible for both Zulu and the EPO area. I really, really hope that he's not distracted by pet projects and that he makes the main thing the main thing! The cash that he has must be used only for Zulu and getting a grip on what's in the EPO area.
Having said all that, I do think that there's a good chance that GR's plan/deal will be disrupted.

What's happening at the weekend, Watcher?

Crystal - just to provide one example of what GR has cost the company... 4 or 5 years ago, he raised funds to do the DFS... which he then spent on Circum... in the interim, he has raised more funds for the DFS and I'm sure he has confirmed more than once that the DFS was fully funded... and we're now paying 13.3% of PREM to have it finished. The cost is not only the funds raised but the subsequent dilution and poor performance of the sp and now another chunk. It must be one of the most expensive DFS's ever!!!
Sorry guys - I've not quite calmed down yet!!

Scorer of the best goal ever... still gives me shivers!!!

Acker - just prepping GR for the kind of treatment he might get from Suzhou!!!

I need to calm down and get on with some work!

We could be heading back under 0.3 if there is no positive news and when the 3 billion dilution hits, we could be sinking further and again we'll be sitting exposed to another short attack! The rollercoaster continues!!!

Yes, Acker - one or two boxes are ticked but yesterday's interview highlighted for me why this is the wrong route.

GR has had ample opportunity for months to give an accurate update on where we were with the DFS - we're running late and the cost has soared.
He has had the support and ample opportunity to raise more funds to get the job done and stay on track but the funding he's already received doesn't appear to have been used well.
He now thinks that he can deliver 70-80% of progress in 6 months when he has only delivered 20-30% of progress in a year.
He now thinks that he can even start building a mine this year.
This deal is not a JV so Suzhou won’t be taking over the DFS… they may or may not be called on… so it really is “as you were” except that GR is going to spend more on it.
In the interview, GR raised the notion of having a level of comfort on the risk for starting the mine which suggests that it’s already in his head that the DFS may well drift. He clearly doesn't have the mindset to deliver on time!
I could go on but I think the market is showing what it thinks of this deal.

Acker - it's worrying that this was the best deal on offer. £12m to secure billions of £'s worth of Lithium doesn't scream that there is a frenzy and clamour!
GR has shot himself in the foot - shareholders have backed him again over this last year with £2.8m (just in this last year alone) and we seem to be only 20-30% through the DFS. It doesn't bode well for him delivering a mine in any reasonable timescale... never mind an accelerated timescale.
The drift is on AGAIN until we hear more positive news.

Acker - I don't want to put words in your mouth but it sounds like you don't think that the Suzhou deal is the best available.

I might be wrong but if anyone puts in a better offer, Suzhou have the option to match it so, whilst I'm hoping for another better offer, I'm not hopeful. In fact, there is a risk now that we lose out big time. Could someone now take out Prem for, say, £200m... a long way short of my expectations?

Snowking - is that your answer to my question yesterday... "in the long term, what will be worth more... 50% of Zulu or 13.3% of Prem"... I'd suggest that it is the latter... by some distance! The EPO area is the bigger prize but GR (with your encouragement and support) chose to give away a good chunk of the bigger prize.
It concerns me greatly that GR is still "negotiating" with these guys - what on earth is he going to give away next?
The more I look at this deal, the more concerning it is - it seems now that GR was desperate to get a convenient/expedient deal to dig him out of a hole and you're still happy to back him. I reckon that GR now has a few million to squander (he doesn't have a good record of spending well does he) and that raises the spectre of MNH and RHA. That few million could have been worth 10's of millions in the future.
I'm holding out for someone coming in with a better offer.

degrasse - you're right, the sp would have plummeted if he had a straightforward fundraising... because he would have had to explain the DFS situation and the remaining cost. It would have looked worse.
GR sounded as if the deal was more convenient/expedient than being the best offer on the table and I guess, as happened with KDNC, in the end he didn't want to give up control. It's not the deal that I was expecting and, with all respect to "real" LTH's, it's not the deal that will be best for us.
There's a very good chance now that we could all be short-changed with a hostile offer!!!

Snowking - really disappointed that you've accused me of not being a "real" LTH!
Anyway, I think I'm just simply verbalising the market response. I think you've already claimed that your sums convinced GR to go down this route. Tell me... hand on heart, do you think that it is a safe bet that GR will deliver the DFS in Q3 and does he have the wherewithal to start building a mine this year? According to some of the more qualified people on here, it would be a tall order for even a major and, yet, here is GR with his track record claiming that he will.
Furthermore, do you think 13.38% of Prem will be worth more or less than 50% of Zulu in the long term?
His admission (finally) that the DFS was behind (well behind in some folks eyes) undermines the whole strategy. Like most people on here, I want Prem to be up there at 3p, 5p, 10p BUT it's the GR factor, isn't it?

Wolf - ouch!!! I'm offended but I do have a point, don't I! Knowing what you know, would you appoint GR to his position today?

Thanks for your wisdom, Robrob999 - I'm holding out for a hostile offer!

As a LTH, I'm very disappointed Wolf - progress on the DFS has not been good and GR has failed to admit that until now. He still needs a fair few million to get it done even though he raised £2.8m over the last year... where on earth has that gone? The deal looks very good for our Chinese friends - GR implied this morning that the deal didn't take long to agree... I wonder now if that's because GR was willing to accept a poorer deal because they could stump up funds now rather than later. With the lack of detail from GR today, I'm looking at it as the same ole, same ole from GR. He's been caught out again by a lack of progress and we're paying for it due to the poor deal.
GR hasn't just given away 13% of Zulu for £12m, he's also given away 13% of the EPO area, 13% of Circum, RHA and MNH (less said about the latter the better)... and apart from the cash, it's not clear what we're getting in return. Looking again at the RNS, at his video yesterday and his interview this morning, it's clear that he didn't think himself that it was a great deal.
On a day that we've been waiting for for a year, GR has disappointed yet again... and the market is telling us that too!