Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Simple calcs
Post successful Anchois well, 10% sold to Energean = $850m to chariot (gross carry).
Chariot remaining 20% of Lixus = $1.7b.
Chariot share price $0.1b.
Quite possible these numbers increase based on further development work/ resource estimate increase.
It's was a good deal as we retained significant % of the asset, for which the value will increase substantially following the Anchois well.
Often overlooked but Chariot has retained a 30% and 37.5% interest in Lixus and Rissana respectively.
Just look at what 10% is worth to Energean:
Following completion of the Anchois well, Energean will have the right to acquire a further 10% of Chariot's equity in the Lixus licence for:
o US$850 million gross development carry to first gas (including the US$85m gross carry)
o US$50 million 5-year zero coupon convertible loan note with a strike price of £20 adjusted down for dividends or issuance of three million Energean shares, at Chariot's option on FID
o 7% royalty payment on Energean's gas production revenues in excess of a base hurdle on the realised gas price (post transportation costs)
All going well, chariot will have 20% of Lixus to play with!
All those other parties can still farm in to chariot 20% at any point. Chariot could completely sell out post lixus well, at may multiples of 10p.
Very exciting weeks coming up!
Sek,
The investment case is very strong.
Target 60p from the current 13.5p. The Risk vs reward compelling.
As you say, ENQ is a very well run company making significant YoY progress.
We are fast reaching a major inflection point on debt reduction.
Great Ceo who was buying big at prices far higher than current MC.
SLIFT,
RE investor taking a stake and/or JV (this will ultimately dilute shareholders by approx 20%)
At current market cap, this is more than factored in. If a strategic JV was announced, resulting in major B/S improvement, I believe the share price would rocket.
Perhaps missed it being discussed but who is the new VP, Global Project Management, and what is his focus area?
He was previously project director at ADC Therapeutics and joined Avacta 2 months ago.
Franck S
Avacta fully owns pre|CISION, a platform with the MoA now proven with results beyond wild expectations.
The commercial potential is staggering and we just recruited a CBO to execute.
Q12024 will be hugely exciting.