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Ilovesushi

Bit too early to tell - wait until Canada opens as that is where the undisclosed, and (probably) uncovered shorting is thought to be taking place.

A danger of voting away or disapplying pre emption rights is that it may make it worthwhile for a hedge fund to come in and short the shares in the weeks before and expected fund raise. The hedge fund focusses its selling in that period to overwhelm natural buyers for a short time. Once the price is down and the issue takes place the hedge fund can then offer to buy shares directly from the company rather than the pre-emptive shareholders and take advantage of a discount as well as the lower price. If pre emption rights are maintained the hedge fund cannot buy direct and so there is no point starting a shorting programme.

Vote against removal of pre-emption rights proposals.

Another danger of voting away or disapplying pre emption rights is that it may make it worthwhile for a hedge fund to come in an short the shares in the weeks before and expected fund raise. The hedge fund focusses its selling in that period to overwhelm natural buyers for a short time. Once the price is down and the issue takes place the hedge fund can then offer to buy shares directly from the company rather than the pre-emptive shareholders and take advantage of a discount as well as the lower price. If pre emption rights are maintained the hedge fund cannot buy direct and so there is no point starting a shorting programme.

Vote against removal of pre-emption rights proposals 5 and 6.

It is good news to have identified that a shorter is at work. Finding that out tells the market that one day the short has got to be filled in i.e. that someone will be forced to acquire shares from somewhere. If that "somewhere" is the market rather than the company, clearly the share price will go up very sharply.

Having the knowledge that a shorter is at work also can helps with communications. The market now knows to be very wary about unconfirmed reports or rumours as there are those who will seek to spread false information to achieve their aims. GLA

Securonomics

Buybacks? :-The company needs the money it has for development.

I see Australia's biggest tin producer has stepped in to buy a stake in First tin.( 1SN) I am wondering if CUSN will find another strategic partner who will wish to buy into the company in a similar way.

Gingy "Could it possibly be more than one short position out on this? " and

"How can they close a short position on this magnitude?"

I am no expert in this area but have seen something like this happen before.

To answer your first question - From what I have heard there could be more than one short position. Canadian rules are different to the UK's and seem to be less stringent. As we have seen with normal buying selling moving through percentages disclosures.

Rules on shorting also appear to be different and I am picking up that uncovered and undisclosed shorting is taking place legally.

Re " How can they close a short position on this magnitude?"

The shorter will be hoping the company will issue shares on a non pre emption basis to raise finance. i.e. Issue shares to newcomers such as the shorter. The shorter will hope to step in to close their short position with new shares issued by the company. Having focussed their shorting in the period just before they think finance will have to be raised they will hope to drive the SP down and that the company will issue the shares at a lower price. Having destroyed confidence by undermining the price and by spreading rumours, existing shareholders become reluctant to continue to support/finance the company and the shorter then steps in with an offer to help out. They then make good the number of shares they have sold with the cheap newly issued shares. This is possible if pre-emption rights have been waived. In CUSN's case, the shorter probably worked out another financing round was coming - and saw that the company was looking to dis-allow pre-emption rights (proposal 8 I think it was in the AGM voting proposals). That meant the shorter would be able to step in and replace existing shareholders in a financing round. They saw their chance and took it. This is a huge lesson in why to avoid voting for disapplication of pre-emption rights. If those rights are maintained the shorters cannot replace shareholders, - AND there is less likelihood of them being cheap because the rationale for shorting is removed.

I understand that one shorter in Canada adopts a blanket approach - and shorts a number of exploration companies as they approach another financing round.

The danger for existing shareholders is to sit and do nothing. That brings success to the shorter. If existing shareholders buy the shares the shorter is selling the price is not driven down and the shorter makes a loss. Furthermore, if the company raises the finance it needs, from existing shareholders, they are not then diluted in % terms or in value terms and the company continues towards production.

If the company finds finance from other sources i.e. does not issue shares, but sells assets or sells a future asset like an off-take agreement, then a share issue is not needed and the shorter then has to buy back the shares it has shorted causing a sharp share price increase back to previous levels..

Hope th

Gingy. I reckon somewhere between 40m and 80m shares, uncovered and undisclosed. Massive. And will have to be bought back/found at some stage. If good news keeps coming and buyers take advantage of the very low share price, there will be a very nervous hedge fund manager somewhere facing an unlimited loss.

Having realised what is going on, we now have to uncover the identity of the shorter .................. great fun.

About Vision Blue Resources

VBR was founded in December 2020 by Sir Mick Davis to identify and capture opportunities in battery and technology minerals linked to EV & Grid Storage growth. Potential commodities include copper, nickel, cobalt, vanadium, manganese, graphite and rare earths.

VBR will target companies in established mining jurisdictions, with well advanced assets (mostly post feasibility study) that are scalable and can be brought into production rapidly. VBR aims to work with existing management teams to provide critical growth capital, technical support, experience in securing future finance, and delivery of ultimate exit strategy. Where possible, VBR will utilise a phased development approach based upon a self-financed expansion to achieve large scale revenue and cash flows.

About Sir Mick Davis

Sir Mick Davis has extensive capital markets and corporate transactions experience. During his career, he has raised almost US$40 billion from global capital markets and completed over US$120 billion of corporate transactions. Some of his successes are the creation of the Ingwe Coal Corporation in South Africa; the listing of Billiton on the London Stock Exchange;

the merger of BHP and Billiton into the largest diversified mining company in the world; the initial public offering of Xstrata plc on the London Stock Exchange in 2002 and Xstrata’s subsequent acquisitions of MIM Holdings and Falconbridge Limited, amongst others and most recently the successful merger of Xstrata and Glencore. Early in 2015 he and his partners successfully closed the X2 Resources fund after raising almost US$6 billion from a combination of sovereign wealth, pension and private equity funds.

Source https://sinovaglobal.com/news/us125m-investment-by-sir-mick-davis-vision-blue-resources/

Dated Dec 20th 2021. On the $125m investment in Sinova Global and before the investment in CUSN.

Rooky 6/7/24 16.49 "The only comment I will make on the above poster, is to look back at his posts over the last 3 months................. etc "

Well spotted and researched Rooky!

Far fewer blank green boxes now as a result. Thx.

Another important point

If the shorter thinks that the company can continue without asking shareholders for funding longer than they expect, the cost of their short or the opportunity cost of their short goes up and they are less likely to keep rolling it over.

So these two lines in the RNS are important in that respect.

"Initial payment has been received for the announced sale of the Nickel King asset in Canada;

Ø The Company is progressing discussions for the sale of other non-core assets located outside of the UK"

I suspect the company has a number of other ways of combating the impact of the shorting fund.

Meanwhile if the shorter loses this battle, the shares are cheap. Brokers are valuing these shares at about 5 times their current level........

NoClueJustRandom 9.50

Indeed you are correct. VBR had a team in place going through the details for about 6 months before they invested.

Since their investment (at 18p/share) much has changed for the better. The resources have been enlarged by drilling, The WTP has been built installed and is working to plan, The Wide formation and other mineralisation has been discovered, and the PEA has been published showing the impact of increased tonnage, and XRT sorting machines i.e. giving an improved NPV for the project. The tin price which was rising steadily when VBR invested has had a setback since their investment, but is now rising again, and the 5 -10 year view for tin demand/supply is intact and makes for a compelling investment case.

Whojamaflip 9.37

Interesting thought. A bit "reds under the beds" but not impossible.

The indications I have picked up from conversations with brokers is that it thought the shorter or shorters is or are Canadaian funds. But their identity is not known. This is probably because the activity is emanating from Canada. Instead it could be there is a malign foreign influence operating through Canada - difficult to tell at this stage. I have also heard that one Canadian hedge fund shorts a number of mine developers, - a sort of blanket approach - knowing the developers need to raise cash every so often, and therefore makes it difficult for a number of them - and if one or two fail as a result, the fund makes large amounts of money.

So it boils down to whether positive investors buy more than the hedge funds sell. If so, the shares recover, funding takes place and mines come into production. The hedge fund loses heavily in those cases. Clearly if an HF thinks that is about to happen they have to close their position - i.e. buy heavily in the market. We have seen what heavy selling can do, so it is quite clear what will happen if the hedge fund has to reverse its position and buy millions in the market, with the rest of us now knowing that a forced buyer is present.

The HFs employ people to sow doubt, worry and discontent, to make the desired outcome more likely. Discussion boards such as this one and ADVFN are used for that purpose.

1. "The programme tested the geometry and the continuity of tin mineralisation within the Wide Formation target over an area measuring 2,500m along strike (northeast to southwest) and 800m downdip (north to south);

· The Wide Formation structure, located parallel to and between the South Crofty mine workings and the historically mined Great Flat lode, was intersected in all drill holes;"

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My comment i.e. It looks as if the structure is huge - another district level ore deposit. Grades to be determined but size of structure is looking very good.

2. "South Crofty is not hydrologically connected to neighbouring historic mines and natural groundwater inflows are exactly in-line with pre-dewatering predictions, which were modelled using historic dewatering rates, the known volume of underground voids and the groundwater rebound that was measured after the mine closed in 1998;"

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My comment:-

Fallacious stories put about by those in most probability working for shorting funds have now been addressed by RNS. Hopefully, putting an end to the fiction.

Whilst this is good for sentiment, we can probably expect those in league with/in the pay of the shorters to come up with some other scare fiction designed to try to make it difficult for the company to arrange funding. That is not to say there will not be genuine negatives or setbacks to watch out for, but be mindful that someone has a very strong vested interest in causing trouble.

Hats off to those at the company for getting on with the job, despite such distractions.

Securonomics

Another cracking day in the tin market it seems. Just what is needed.

Gingy Catalysts

The normal sort of trading stuff - increased tin price, good assay results, news about the Wide Formation, possibly the appointment of a good new CEO, news on reduced energy costs.

Then there is news/no news but something which causes the suspected shorter to stop shorting. There are quite a list of things that might cause that ................................................

The case for SC for the Wealth Fund:-

1.Tin and Copper (contained in the ores in South Crofty) are essential for the drive to electrification

2.Tin has been designated as a critical metal by the UK and US, and at the moment there is no primary tin production in the West.

3.Levelling up. Pool/Camborne is an area that needs jobs and a boost to spending power. South Crofty - if financed -can provide hundreds of jobs directly and hundreds more indirectly.

4. The production of tin and copper would make the UK more resilient to pressures from particularly China which controls the markets for many of the critical metals.

5. Tin and Copper production at South Crofty would help cut our balance of payments deficit

6. Resumption of production would give a significant payback - not just of funding but in future tax receipts.

Securonomics Good find - thanks

https://news.sky.com/story/what-a-national-wealth-fund-is-and-why-chancellor-rachel-reeves-has-launched-one-in-uk-13175622

Watch out! Vote against these two resolutions as they remove your pre-emption rights.

New shares should always be offered to existing shareholders first, especially if they are being issued at a discount price. To vote for the resolutions is like saying to the BoD you can use my assets to pay new shareholders to come on board.

The law protects shareholders pre-emption rights, but these resolutions enable BoDs to get around the protection.

Gingy

I think it is a Canadian (hedge?) fund that is shorting on an uncovered and undisclosed basis. That provides us with a very cheap way into the shares until they stop - or have to cover their shorts i.e. borrow shares to sell, or borrow shares to cover those they have already sold. They are running a huge risk and few on this board will have sympathy if they end up with an unlimited loss. They have probably sold 40 -50m shares and perhaps considerably more.