Johnnypc - sorry to irritate you about sources BUT... a deal is done and with the legal peeps. GR taking the view that the deal isn't a deal until he gets the legal nod. So he won't announce until he gets the all clear from legal. I'm hoping that he gives enough time for the sp to respond so I'd rather he announced on Monday rather than 4:15 this afternoon.
It is now very, very clear that Canmax are not going to walk away. They must be confident that Stark are resolving all the issues satisfactorily and that production will ramp up to the levels Stark have predicted and that it will be SC6.
The next big question is what will the deal include. I'm just going to say that I'm inclined to think (rather than my sources have told me) that this deal will include some form of funding for expansion of Zulu and/or EPO. I've no doubt that talks have included the next phase so we could get a surprise!
Much more confident about 1p this month but we could be surprised by a 4p a share offer.
Nord - glad you've made a profit but your nerves would be less frayed if you invested over the longer term rather than traded. Maybe this game isn't for you. Why put money into Prem unless you think that the sp is going to rise? Everything points to a major increase so why sell?
The way I look at Prem is that the sp is going to rise significantly with or without Canmax. SC6, if they haven't produced it yet, is just going to take time. It doesn't look like Canmax are going to walk but, if they do, Prem will still sell all their spod at very profitable prices.
Trade away but there's way more peace in investing.
The important paragraph is this -
'The Board is pleased to report that these discussions, which remain ongoing, are at an advanced stage and have been constructive. The Board's expectation is that there is a common understanding between the parties and they are close to a satisfactory resolution. Shareholders should note that as CanMax is interested in more than 10 per cent. of the issued ordinary share capital of the Company, any addendum to the Agreement will be a related party transaction for the purposes of Rule 13 of the AIM Rules and will be dealt with in accordance with AIM Rule 13.'
If they were close to a satisfactory resolution at the weekend then it follows (at least to me) that a final agreement could be made this week. Because of the 'related party' situation, GR has to announce to the market without delay so there's a very good chance that this morning's rise is because there's an RNS on its way confirming the deal.
My hope is that we'll get something close to what the original agreement was BUT there's a small chance that Canmax will want to take Zulu and/or Prem as a whole. One line of thinking is that GR has been too much a thorn in their side and that GR has found the last couple of months very stressful. I believe that Canmax had hoped to wrestle Zulu away from GR but he has proved too sly/wily for them so plan B is to buy the whole thing. Let's see what transpires!!!
I'm thinking that they perhaps had an interim update on something last week (either the JV, Ghana or both) or, at the very least, they know that things are going very well so they moved quickly to grant these options (almost double what was granted in January). Management team will be very well rewarded when this takes off.
There's still plenty of momentum in this rally... we could get more positive news at anytime today/this week.
If GR strikes a deal with Canmax, he has to tell the market immediately. That's why he highlighted the Related Party rule. I suspect that we could add another 30%/40% on that news alone. Like others, I think we could hit 1p this month if all goes well.
Let's see what the new arrangement with Canmax will be - I think we could be in for a pleasant surprise.
Vote - GR has to go ahead with it regardless of what is agreed with Canmax. He's a sly, old fox and he knows that he can't give Canmax an inch. Having the option of NOT having to go back to Canmax for cash is essential going forward.
Acker - hope that you're well!
I agree - potential for 1p by the end of August. If GR has been able to keep Canmax on board with a reasonable deal and we get some decent production (albeit below what has been expected to date) then we'll fly!
Haven't posted here for a while but very pleased to see that GR has made progress with Canmax and with production. Unless GR is spinning things, can't see this going to arbitration now. sp should now recover... with continued progress, it will definitely get back to 1p this year... could go higher though, much higher!
Feeling sorry for those who panicked on Friday afternoon on the mistaken belief that Capstone had reduced their holding when it very much looks like the opposite and that they now hold over 14%.
We're at the lower end of that range of £5M - £25M... with the volatility in this sp, we could easily shift to the upper end with any positive news. Come on AP... give us some good news!
That sounds a reasonable explanation, Sandy. They/VAST have been slow to update so we could get a TR-1 next week.
I'd agree as well that they're more than likely doing it for profit - they don't seem the type of outfit to want to own a copper mining company. Only other thought is that someone else has engaged them to build a stake for a bid but that's unlikely too.
All in all, it's an encouraging situation. Just need AP to deliver.