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Just realised the significance of who KME are - apparently they're the outfit that was previously drilling RHA so they're not going to jump in with GR and a dud mine, are they?

They know what's in that mine plus they're operational and will deliver!!

I'm liking this more and more!!!

I'm not disputing that, Malkster77. You said that the sp hadn't moved since the podcast and it clearly has - not sure why you would be telling porkies!

It looks genuine and there is nothing in it that is inconsistent with the RNS.

GR needs to explicitly confirm that he is actually standing down though. The irony is that, if this is his last deal, it could be the one that actually unlocks the value in RHA and Zulu!

I'd expect the sp to react if he confirms his departure tomorrow afternoon.

FWIW Malkster, my chart suggests that the sp has been rising since around 1:15 today - roughly when folks started to get wind of the podcast.

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

Malkster77,
no-one is impressed by GR but just can't see how GR is going to take our Circum holding!

He also mentioned doing DD on KME and specifically mentioned their valuation and, subject to DD, that could be changed.

Just listened to GR on VOX Markets - the interviewer was obviously a bit flummoxed about what to askso there were quite a few questions that could have been asked but were not. The interviewer did highlight that it was a very complex deal.

Anyway, what I took from it is that

1) Costs for RHA and Zulu will be greatly reduced.
2) Progress on RHA and Zulu will be speeded up
3) This deal allows PREM shareholders to retain a greater percentage of the benefits than any other JV deal.
4) For me, there was a major hint that GR wouldn't have a significant role in the NewCo - he talked about the removal of one of the major factors being removed which is holding back the sp. I think that he was referring to himself!

Hi Mudskipper,
I think GR has separated out Circum so that the Zim gov't and KME don't get a sniff at it. I think that it will become clear once the ownership RNS is out - perhaps, GR will explain tomorrow afternoon.

Just some further thoughts - I think that GR has gone down this route because he is confident that he will get funding from somewhere. I've wondered why the RHA ownership has taken so long and clearly one of the complications has been this restructuring. After the comments last week from the MOM, I think that he might have negotiated some financial support from the Zim gov't, perhaps, in the form of a loan or maybe some compensation or a mix of both. If the Zim gov't also end up with a share of Zulu then they need to cough up something in return.

I think that he is also confident that the Circum IPO will happen in the foreseeable future giving himself the firepower that he needs.

With regards to Zulu, I think that this is a better deal than the previous proposal and that we (PREM shareholders) might ultimately hold a greater share of Zulu than we might have otherwise. I hope GR has the ownership RNS out before tomorrow's webinar so that he can present the fullest picture.

I'm beginning to like this deal!

IQ157 - my sentiments entirely. The deal allows PROGRESS and quicker progress to RHA production and Zulu DFS... 6 months from now, we should be sitting pretty!

Well done to your Mrs, Charlie!! If you're like any other guy, you will be smitten by your daughter and she'll have you wrapped around her tiny, little finger already. Every blessing to you all!

Could be Welshie but what about the government's cut?

CF,
KME must exist in some form or another beyond the deal. The incentive payments are paid to them if the targets are met.
I'd agree that the indicative valuation of NewCo is 20 million - add Circum to that and the PREM sp should still be well above today's valuation at cob.

CF73 - I said earlier that I was OK with the proposal but I am very disappointed that GR can't seem to get a better deal and it seems clear that no-one serious wants to do a deal with GR. I would still support GR being sidelined - fundamentally GR is the problem!

Here are some questions that I've got - as is always the case with GR, the RNS is confusing and unclear.

What % of NewCo will be allocated to existing shareholders?
What % of NewCo will be allocated to the ZIM government?
What % of NewCo will be given to any board members or employees of NewCo? Hopefully, none?
Instead of a JV that doesn’t require any cash (because the JV partner was expected to pay for operations, etc.), we have a JV that still needs $6 million. What is this $6 million for and how long is it supposed to last?
What are the financial projections for NewCo and when can shareholders expect to see a profit?
What will the timescale for ZULU DFS be?
Who currently owns KME?
Do any of the PREM board have an interest in KME (directly or indirectly)?
Where can we get KME annual reports? I’ve been searching all afternoon and can’t find anything.
Does KME have any cash? If so, is this part of the deal?
What will be the status of KME after the deal?
Who owns the equipment at RHA? I thought we did but I could have that wrong.
Who will be the chairman of NewCo?
Who will be the CEO of NewCo?
We are paying $4 million in shares for equipment – is it worth this much? Why would we do this rather than simply hiring it?
We’re then paying an additional $3 million if targets are met. What if targets are not met – does Prem get a payment from KME?
What will happen to our Circum holding?

If anyone can shed any light on these, I'd be most grateful!

PREM down by 30%+. One of my other holdings CLON up by 30%+.

It's a real pity that I didn't have as much in CLON as I do in PREM!!

Question for me is whether GR will get 100% ownership of RHA transferred from the ZIM gov't or 90%, and what, if any, compensation or cash GR will get.

It would seem to be a pretty bad deal if the ZIM gov't get a slice of NewCo as well without shelling out a penny - they can then profit from Zulu as well. The talk of compensation encouraged me and I'm of the mind that the announcement about RHA ownership is likely to be a surprise for us.

Circum had to be separated out so that the Zim gov't wouldn't get a sniff at that.

As ever, nothing is straightforward from GR!

Correct me if I’m wrong but it looks like Newco is being valued at around $20m, if GR is paying $4m for KME, i.e. 20% of Newco’s share capital.

GR must be confident in raising $6m in debt or equity for Newco… why go down this route, otherwise?

The proposal requires our approval - interesting! Could be an opportunity to oust GR!

Newco will have a new management team – I’d be pleased if GR isn’t part of the board/set up.

To me, this signals that Circum is going to happen very, very soon.

The real value in Prem/Newco is when the assets are producing - this does accelerate us to that point so I'm OK with this in principle (subject to GR's answers on Friday). Consider again, what will this be worth when we get to DFS for Zulu.

We still don't know the details of the gov't deal for RHA - I wonder if there is cash coming back!

As a dad of girls and with one granddaughter, PREM needs to deliver big time for you, Charlie. You've got an expensive 20+ years ahead of you... lol!!!

All the best - hope that everything goes well! I found ear plugs and steel gloves were essential during labour!!!

volume has increased in the last few mins and the sp is heading higher!

At the very least, GR should issue some sort of holding statement.

I can't see any good reason for the ZIM gov't to reject GR's offer - as far as I'm aware he has them by the short & curlies anyway but has been nothing but patient with them.

If Zim is open for business, etc, etc then this isn't a good example - lacks some credibility to extend a deadline and then fall silent beyond that deadline.

I'd be gob-smacked if we were to get some compensation but good on GR for raising it with the Zim gov't.