Member Info for steward1

Can't quite see how another fundraising will be needed early next year if all the costs for the next 18 months are included in the restructuring deal???

It's been pretty obvious for a few months that there won't be a revenue stream this year, Acker!

Can you expand your point?

I don't see this as a dilution - a dilution only results if the restructuring doesn't add value. I fully expect my holding to be worth more than it is now after the restructuring.

Circum, on it's own, is likely to realise at least, if not more than, the current market cap of PREM as it stands now.

For me, NewCo will end up being a free ride! AIMHO.

What's your alternative plan, ihavenoclue?

I'd really like to hear from Strongman, Xulu and Crazy!!!

Yes, we need something official from the co.

Hope that you're going to play nicely today, Malkster!

Hey CF,

I would add that KME are showing some confidence by taking NewCo shares and that GR is showing some confidence by converting his loan... effectively investing another £300K.

What's your alternative plan, begger?

I'd be interested to know what alternative plans folks might have to realise value for all holders? I like the current plan but if there's another one that allows us to retain a greater percentage of the assets, costs the same or less and gets the job done in a similar timescale then let's get them out on the table... I'm sure that GR/Fuad is keeping an eye on this board!

I, and am sure many others, would appreciate if we can avoid the personal attacks that have been going on over the past few days.This is a critical time for PREM, and, whilst I appreciate that folks have a lot at stake, the personal attacks are not productive.

I agree Chippy - with this restructuring, GR has to get the detail out... total costs and expected profit and timescales.

Chippy,

I'm no fan of GR either as you can see from my posting history - I personally think that he has been the no. 1 factor in the lack of progress and subsequent fall in the sp. With him effectively being sidelined, I'm more than happy to have a significant investment in PREM again.

I happen to think that this is a very clever deal which may or may not benefit GR and KME but it will benefit shareholders. Whatever we think of GR, the current MC (even without the deal) is way below what the assets deserve. With this deal, we should see a better valuation of our Circum holding and a decent valuation of NewCo. IMHO, I reckon we might initially see both individually valued around the current MC of PREM - with progress on the Zulu DFS plus getting some of that stuff out of the ground at RHA, we'll be sitting even prettier.

GR clearly has not been able to strike a good deal but that doesn't mean that other parties will not want to buy in especially now that he is being sidelined and that there is a realistic and reasonable plan. I think the $6 million will be easy to get.

Yes, your points are well made about getting the detail of the deal right but I would go as far to say that I would happily contribute to the $6 million especially with a crew who know RHA and who are incentivised to deliver. To me , we're finally at a stage where we can see real progress and that $6 million investment will convert into $tens of millions for shareholders. AIMHO!

Good posts this afternoon - glad that the name calling has stopped.

Trading this will be risky - whilst there is a DD period, both parties seem to know each other well so an announcement could come at any time.

We could probably anticipate a spike when we hear about the RHA ownership position but that could herald a sustained rise in PREM. AIMHO

Craig - he didn't say that he had funding tied up (perhaps, not to be expected at this stage) but he did say that soundings with potential lenders, etc were positive.

Given the plan, I'm comfortable that NewCo will have the funding that it needs.

I wouldn't characterise it like that knicol64.

I actually think that there is a lot to be attracted to in the restructuring - it's a good plan that gets things moving and delivers other benefits!

I didn't believe that I would ever say this again but I thought GR did a good job.

The restructuring looks to be good and potentially very good!

Ross,

you still don't get it, do you?

Ross - I don't think that you're up to date, mate. LK got additional funds from a little consortium including bigmj and Shroders - absolutely no need for funding from LIND.

The way I'm looking at it for current holders is that PREM (after the split) could still be valued at around the current MC (could be significantly more) and that shares in NewCo are free!

The combined value (AIMHO) will be significantly more than the current MC.

Good move by GR………….. but I think that he's pretty confident that he'll get a much better return getting PREM shares.

I'm really liking this deal- one of the basic issues that we have is that the majority of us think that the company is undervalued. The assets are worth way more than is reflected in the MC/sp. Splitting out Circum from the rest will force the market to properly assess it's value. The NewCo will also need to be properly assessed.

My view at this stage is that the combined value of both initially will be significantly higher than the current MC of PREM (aimho).

It appears that one of the major factors (if not THE major factor) for the sp being depressed will be removed, i.e. GR is stepping aside. He can't do anything about Circum in any event and it looks like our JV partners will be taking control of NewCo.

Add the above to a more production-oriented team (with incentives to deliver) plus the possibility of some financial support from the Zim gov't, we've got a pretty good chance that value for shareholders will increase significantly in the short term (AIMHO).

The goal is to get RHA producing and to get that DFS for Zulu done - when we reach those milestones (and I think that we're looking at possibly the 2nd quarter 2019), we will be significantly higher than where we are now (AIMHO).

As I said the other day, if this deal is GR's final deal, the irony is that this could be the one that unlocks the value of our assets!

I'm pretty bullish about this now!

blacksheep15 - check out Trombone's post of 17:09 and you could possibly add "Financial support from Zim gov't" to your list!

I'm liking this deal more and more and more!!!!

Great find, Trombone!