RE: Cash position4 Nov 2020 14:40
On the cash...
1. Explorers always need more cash. Assuming it’s good money investors can either ignore and play the long game so it doesn’t matter or time trades to max the returns by trading either all or some of their pot.
2. Here 94% of the warrants were converted giving the float see 24th sept RNS.
3 in the 30th sept RNS results to y/e 31st Dec 2019 the company give ytd cas guidance as.... read the last line....
“On 2nd June 2020, the Company appointed Peterhouse Capital Limited as brokers. On the same day, we raised £856,702 consisting of £300,000 in cash and £556,702 in debt and creditor conversions into equity. This was raised at 1.35p per share.
· On 20th August 2020, the Company raised £400,000 specifically to focus on expansion of our exploration programs in Australia. This fund raising was at 2p and was accompanied by warrants at 3p issued on a 1 for 2 basis.
· On 24th September 2020, the Company announced that 94% of the warrants had been exercised thus raising a further £283,200 at 3p per share.
The net effect of this restructuring and capital raises has been to leave the Company well funded to complete its exploration programs and with additional cash to pursue additional expansion.”
4 so a couple of things we know the drilling and expo is covered from existing QPB so the question is. From what is left does it cover the acquisition? This is £50k plus...
“an additional £183,333 in cash, issue 11,111,111 new ordinary shares (Acquisition Shares) at a deemed issue price of 3.3p equating to £366,667 in aggregate and 5,555,555 warrants (Acquisition Warrants) to subscribe for one new ordinary share in the capital of the Company. The Acquisition Warrants will be exercisable for a period of 24 months from admission of the Acquisition Shares at the price of 3.3 pence per ordinary share.
As it’s cash I would say the £213,333 was paid for. They used warrants for the rest for finders skin and leverage.
So they have enough money for Terra Search, the licences and working capital but they have spent a lot of cash. We don’t know what the gap is between now and next steps or how it will be closed.
I suspect we will see more drilling results and then a raise with more warrants. RCF doesn’t fit this model. I would expect any raise now to be +10p and possible early next year unless the sp closes in 15p range in which case they may raise earlier.
Don’t rule out PRIM coming in though!
Usual caveats
Trek
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