Recent Trends in West African Gold Mining

all West Africa rep West African gold could be boys the new lith it's all happening today in West Africa and East Africa African gold we should do the intros more often afterwards you're more fir I just want to get right in crack a tin bloody love it right we're getting into like pereus are into aorp now Tito's independent expert report is released yep reject reject don't touch their same don't touch it mate on the junior end which you love JD Toco they've acquired a bit of Grand in quir and raising a bit of raising some bucks and uh nothing to do with African gold morning ays uh topping up the topping up the kitty raising a couple bucks as well I'm excited mate live m&a like you know third parties getting involved want wanting to have a say oh mate this is um I love this stuff you know who else you know who else is excited I'm excited Sheamus Murphy I'm even he says he's excited don't worry boys I B I'm excited there's a bloody free one for you for the week Sheamus yeah right now a bit of info has come across me desk the stuff that gets sent into me these days just from the great supporters it's Sensational right apparently apparently there is a regulation in the wa morning act 1022 where you can exemption from your expenditure conditions on the basis of bankruptcy liquidation Andor Insanity wow this was your weekend reading this is mate unbelievable I've procured a bit of a cartoon that is uh pertinent to this Clause look at this look at this now in the tough Capital markets that we're we've seen like MDS are like could be prone to pretty much go under the Looney Bin the pressure is on that pressure is on you end up in a bloody little straight jacket in a padded wall there mmts now like they've had this service the whole time and it's one that we haven't talked about they can help MDS any any company that is pretty much gone off the wagon or on the wagon which I always get confused about that pretty much lost their and they can help them apply to get like the expend exempt from expend because um they've pretty much gone insane M I've got to say is that caring for the industry or not it's definitely caring for the industry duty of care for the good people of the industry The Good the good people that are just a bit down on their luck and the share you get 5,000 shareholders ringing you each day telling you how much of a bloody you are cuz they've lost their money like that' be enough to send you to what you know a facility um mmts are here to save you can I just can I just clarify right like I mean we all know how nich our show is we're talking about Daily Mining news not many people in the world care about that but now you're pitching to the MDS of those companies who think that they might be going bankrupt insane or the companies approaching liquidation be fair I'm not recommending how to handle it but if you 50% of our audience if you go bankrupt or bankrupt or you're going into liquidation there is an option you could just tick the insane box and maybe save a bit of face you need mmts help on that yeah I think so yeah so anyway if you are actually sane and you're not going insane mmts can also help you as well just for everyday mining title compliance pick up the phone give mmts a call all your title service related queries they can sort you out you don't have to be insane right you don't have to be insane you can be perfectly signed and they can just help normal normal signed people as well say what a what a diverse offering Che before get leading up to Christmas I'm going to put the call out to the East Coasters that see bondie at the Paragon or something after work we're got to do the Bondi tell all is this your Christmas this will be a Chistmas Christmas present for me or we want to do the bondy tail or Terror Capital while they're not bloody investing in natural resources based on every news article it appears they invest in uranium cuz every news article about terror is about uranium but I we need to have the Bondi tell we've had the langers one we've had the DK one it's time for bondie to open up open up don't go to all these Legacy Media joints bondie come to the new age podcast and tell your story there's so many companies out there with great stories I've heard I might have heard that one right bondie come to Perth tell the bondie tell yeah do it in person sit right here yeah yeah make you comfortable and then we'll go we'll shout the BD afterwards got some dingos in the fridge right right thanks Tera for all your support bondie come over if you see bondie Heckle him tell him he's got to do his money in M shot let's rip in right let's get into this African god the new the new bubble is this the new bubble is it the new thematic African go let's hope so for I'm not quite so hopeful but money of first Movers yeah well this one this one's what's the update on the or Corp thing we're going to start in Tanzania Maddie so as we spoke about in August and then again last week a couple times or Corp have been bid by Silver Lake uh silver Corp rather they initially bid in August and they're put in another kicker after a bit of the uh bit of shareholder Revolt from the the major shareholders Nick Georgetta and Tim goer and now it's turned out that uh persus has come in with a what was this morning a 15% stake and what we've just seen updated to a a 19% stake so as a quick reminder we're talking about the nyang zaga gold project in Tanzania it's 40 million tons in Reserve at 2 G per ton for a 2.6 million ounce project and they were looking to produce 234,000 ounces over the first 10 years roughly so not not bad numbers I persus have they've acquired that um stake the initial 15 and now 19 just days after silver courp agreed to that 4 bump in cash consider ation of their existing offer to um or Corp shareholders AFR reported that the first 15 they picked up from Federation which is that o super backed entity um not sure where where they got that extra five from or four or five from uh that's just come out now but um yeah I mean interestingly when when oror opened in early trade it was down 10% and persus they've stated this is is not currently that it's not currently in active discussions with oror it does not intend to submit a change of control transaction in competition to the current silver corpse scheme um and it intends to vote against the silver corpse scheme which means that they're they their stake is um it's going to be it's going to more than guarantee a block in the in the scheme so okay so if we go off the fact that it was down 10% at the start not sure what it is as we're talking and the fact that it's that bit of as we said at the start of the show bit of a it's like a bit of a Chris Jina tactic let's just take this uh majority control minority control but enough of control to block any m&a take control possibly look at a whether they're looking at a JV or a future takeover but shareholders now thinking oh gez this might be the kicker we were looking for for the takeout what do you think boys I I think there's um there's two possibilities of what we could actually infer from P's intentions and one of them you're right about that Christina um tactic right so like for the purposes of the scheme vote going ahead it's definitely like a blocking stake based on any expected voter turnout given persus say they aren't intending to submit their own change of control I think it's one of two things one is that uh persus are wanting to form a a joint venture or similar with silver Corp and provide a development pathway together for nin zaga keep in mind persus does have better funding capability better balance sheet there's like fears that silver Corp would need to dilute its shareholders further to fund the capex for that project well persus obviously has plenty of cash so you can see some Merit in that and the other Theory Maddie is um to your point persus is buying some time to submit its own bid but it won't do so without getting access to due diligence which it can't do while or Corps deal with silver Corp is on foot unless it submitted its own bid however it won't submit it own bid if it doesn't have access to DD so this is the way you can block the deal and ultimately get get access to DD this is similar to that you know sort of chriso approach you take a small stake of effectively block the m&a once the deal with silver cor is off persus can submit an MBI to the board request access to DD keep in mind assuming silver Corp remains a shareholder um throughout this persus would need to actually lob a bit high enough for silver Corp to accept themselves so should they go down this route until the um silver Corp deal is off the table the board is restricted from um you know there's that no shop no shop no talk um characteristics of the scheme uh implementation deed so they're they're prevented from kind of having these discussions unless there's that fiduciary out for the fiduciary out to happen there needs to be a bit on the table which there's not need to so they need to put a bid in without DD the only way that the only option perers have in contrast to buying the steak right now yeah I think that would that would warrant access well that would that would yeah yeah and right now it looks like they're not willing to to lob a bid without access to D you know I kind of thought in my head that that maybe they'd done DD before maybe there was a d room before the silver cor deal and I I don't know these are just the two theories that are um in my head at the moment yeah and this is all part of as we've talked about before Percy looking to diversify the African exposure yeah that's it I don't think they've got any intention of leaving Africa but in terms of in Africa they previously had the the sudin project which had fallen over we're going to talk about Tito later on you might ask why they not having to go there Y and I think you know the answer would be that they don't want to concentrate they don't want to go to three assets within the one Country CA there so this would be spreading their risk across Africa and just on the timeline of this it's going to happen pretty quickly as we touched on when the kicker went in the the timeline didn't change at all so from memory the the voting's going to be done by 8th of December so in the next couple weeks we're going to going to find out whether that silver Corp deal is going ahead and you know seem quite likely that that it wouldn't given what persus has said but yeah it should be interesting to see how um how persus go about negotiate whether they want a JV or what a strategic partnership could look like right let's get on to TI then good what what an African gold segue so they've come out today saying that the with the target statement saying directors are recommending to reject the off-market Takeover bid by Zin Capital so as we've talked about before they've got the the Abuja gold mine in Coto they haven't had the best ramp up with that project they've had seasonal issues they've had low grade reconciliations than what was sort of first expected and outlined and in in tandem navigating their way through all the artisanal old workings plenty of wood and going through the bloody Mill sounds like a lot of bloody fun it's pretty reflective of the uh the share price over the past year it's just been trudging down and down and down as you know they'd failed to meet the first quarter guidance second quarter guidance and all of that so they they were when we first spoke about them that that's when they they were on the decline and it appeared like with I guess there was a change in management there was an updated life of mind plan coming out so it looked like a bit of a getting a bit of balance back in like the the June quarter head gray was 0.68 G per ton so they updated mine plans for 1.04 so it's like a very it's a low grade one so so they decided to really drill out the thing at a much closer spacing to get a much better understanding and as well the production profile became much more consistent in around 170,000 o perom as opposed to jumping around from 200 to 140 to 180 over the uh you know the the life of mine look at but how good is it when you if you don't drill it out enough like it's a w so you don't drill it out enough you can't figure out the grades lower and it's cheaper what a that's what a way to do it so anyway look like and following on from that that's when this uh following on from that turnaround that's when Zin uh put in the non-binding off Market take over four uh at 58 cents cash offer so they were an existing 7.25 5% shareholder yeah and that that 58 cents valued the the whole business at 629 million yeah and now the I guess the key part in the Target statement today is the independent expert has deemed the offer is not fair and not reasonable uh for the Tito shareholders and they've assessed the fair value of Tito shares to be in the range of 79 to 93 cents so they're sitting at a bit about 61 I think in early trade today so that's a a 36 to 50 9% premium to the unsolicited offer so yeah they they're looking at a value between 900 and 1.05 billion for for the whole business yes so I'll put up the the key reasons put in this target statement of why Tito shareholders should reject the offer per the board the what per the board per not our reasons no this is the board the board's reasons so number one zens offer materially undervalues to pretty much every MD says that um zin's offer is opportun opportunistically timed can you say that properly opportunistically that's heaps better well done Trav um two of TI's major shareholders uh who hold 18.73% of shares do not intend to accept the offer at that price the offer is subject to another conditions regulatory approvals in China and Coto and therefore is uncertain whether the offer will ultimately proceed if you accept the offer give you risk missing out if a superior proposal comes from a third party we can discuss that and if you accept the offer you may pay tax on any gain you crystallize in The Current financial year now pretty standard pretty standard um reasons to reject with other offers as you mentioned JD why or would pereus look to this or not look to this mine yes so like we touched on before I can't imagine Perseus will lob a b just for the the pure reason of not wanting to concentrate their risk in Africa within the one country they've already got the two mines in in the Ivory Coast there and from how we'd spoken about the asset in the past a lot of people that we know who have a geological background they didn't like the uh the or body they thought it wasn't drilled out with enough confidence they have done a fair bit to uh you know alleviate those issues for shareholders but you know if you were a shareholder it's coming a little bit too little too late the the share price had dropped from 90 odd cents all the way down to to 35 and all all funded by Equity exactly ex a little bit of debt afterwards but yeah later yeah it it was an interesting financing strategy for sure yeah and in in terms of potential other biders out there I'm not sure about you guys but I struggled to see anyone on the ASX that would have a go not to say that there wouldn't be TSX or American listed businesses that would look at this one but just for the um the miners that we know that have substantial cash balances or you know access to debt it'd be it'd be hard to imagine you know we're talking a pretty significant value well over 600 million closer to a billion dollars now yeah so like yeah it's a billion dollars for a one gr deposit so obviously obviously comes with and add the jurisdictional risk it does come with its risks not saying that no one will go for it but there's obviously a bit more every it's one of those ones that sort of everything has to really really go right but drilling it out properly is the first step towards making that happen it helps it's I read it as um it's for sale now that you know there's this live bid um the board obviously recommend to reject um that's like the Playbook and you try to get a value uplift to something more more palatable to shareholders along the way but at the same time it's an invitation for someone else if they're interested to lob a high bid too so um let's see how it play plays out for shareholders I'll tell you a funny Tito Share story that I'm involved in I think I know this one so when we first did the episode and like like I'm like that was the one I actually went deep into research jez I learn a lot when I actually research who would have thought um and I was like like this is they drilled it out there's an updated plan it's been fully it's been diluted to the house with how much Equity raising and financing was done and what this might be a buy here and this is when the stock had got down to between think it was 30 30 sense so I put a buy order in for 29 and one share went and then it and it went 3132 and I missed out on it and it kept going up I'm like should every other share I buy goes down eventually and and it didn't trigger and then it went then the Takeover offer come in at 60 so I could have been in at 30 or 31 at 60 now so oh I've got one I have one share in Tito one that I got for 30 something cents mine is all the I think it cost me 15 bucks because of the breaker so it I'm not sure I can trust your incentives on the your reporting on this story technically I've got negative you got the highest cost basis of anyone paid 20 bucks for that Bloody it's very much in your interest for TI bort to reject this one so you can get a better price I can get me better price on me one share so I need to go needed to go up to 20 bucks to cover the brokerage oh de devastating times for M all right West Africa it continues too well this is on the on the junior end so this it was just pertinent that were talking about it today so they they already had some ground in Co in and around Cod and they announc anounced last week they're requiring 70% of the FEMA gold project in codo from Endeavor mining so one half uh what is it us one and a half bucks and they're issuing uh 465 million terraco shares subject escro to Endeavor so Endeavors there cuz their Market Cap's us 5.3 billion and they're going to become a 9% shareholder in Taco so look had a big run on the announcement last week as you see but wait in a trading halt today to raise money who would have seen that coming clock you could read I think they had three and a half million cash at the end of the quarter but then paying one one and a half bucks us for this purchase and obviously yeah who would have thought I haven't seen the term sheet of that there so there's just it's a bit happening in that little West African region inir well there's two things happening that we've talked about m capital raising so yes be interesting to see how this plays out and what Percy as you said to sum it all up what is Perseus up to with this 20% stake will they be looking elsewhere as well are they going to struck in this time yeah it's interesting to see all the the corporate action given the depressed valuations across across Ross Africa in West Africa in particular speaking of another couple of bucks that are getting raised Trav AIS AIS yeah raising 30 bucks today Maddie uh they had a pretty um pretty hard time of like we've discussed it many times on our podcast and probably don't need to rehash the operational WS that have that they've faced um today but recalling their last quarterly the quarteron quarter cash position was relatively neutral topot drawing down new facility with um wh so Pats repa um a different debt facility but Drew down a larger one uh today looks like they're trying to repair the balance sheet with $30 million raise at a 27% discount it's 11 cents isn't it right yeah so I think when we talked about them last when we talked about the I think it was the quarterly when um things were going so well I think they 20 21 cents now they're raising at raising at 11 so they previously traded at 15 yeah so wh so Pats they're taking up their entitlement they're underwriting the ret tell component of the raise which should see their stake rise up to 33.2% depending on how much they ultimately um get in a shortfall and the structuring of it is quite interesting so they've structured the raising as an anrio plus a placement together what does that mean well it basically means um they get the money from the placement and the institutional component of the anrio in a week's time so they're maximizing the money that comes in the door um ASAP or up front there's a funny rule when you do a placement and an enryo together you can get an uplift in your placement capacity um it can be based off your pro former shares and um and you can see in a waiver that uh that Aries has gotten from the ASX that they're actually get making use of this higher placement capacity as well so really maximizing the early money in the door there there's also a bit of a a signal from from how they're going about this and to me that reads that they need cash and they need it quickly yeah I think that's a a fair read through just just based on the equity um raise structure um the use of funds is really interesting on this one it's in quotation marks General working capital and increased Financial flexibility is the uh the use of proceeds it's very nondescript um for those quickly wondering why you know Soul Pats has such a big stake they were the ones that had vended in you know round oak the the Assets in and they're sort of following their following their money right correct it it's notable um like if you look at their proformer balance sheet they'll have 50.5 million in cash and 40 million of drawn debt at the end of the raise so hence 10.5 million in net cash position but it's notable that in the in the use of proceeds it's not like that use of proceeds is to pay down any of the debt facility so that $40 million drawn debt actually still stays there and remains bit of a risk areas I think that debt facility is um is with so Pats like like we mentioned who are supporting the raise the question for wh Soul Pats do they help areas Equity or or do they let them suffer and potentially take back the assets VI an Administration process for now at least you know they're choosing to help Aries and so let's um let's hope things turn around for for Aries sometime soon is that is that a form of protection in a way that the largest shareholder is actually the debt provider as well so they don't protects them from getting called upon in yeah I think you have more alignment to shareholders if if the debt provider also has a a chunky bit of equity that they're trying to protect as well yeah do see that as a positive um for sure yeah yeah right boys love your bloody work right uh couple of sponsors to thank oh mate we got a bloody end of the week go to the ACH Awards to pick up our award jeez if if I go to the event and I don't bloody we don't win it I'm going to be spewing I'm never going again it's bad luck to claim the award before I'm not claiming it but like Jesus if I go and we don't win it like that's I'll be spewing we've got a couple uh interesting interviews that we can um give a bit of a preload to as well our we got a friend from North America coming over that might be it might even be a two-parter that we released this week I'm over via Zoom yeah am I super your friend oh that oh another oh not that one we got another he's coming here in person oh yeah yeah but we got the um and another American one this week big Mr lith coming back on for another run via Zoom that one that is he might fly over he does love us yeah and uh what else is coming up oh that's that's quite a bit on your note on the awards MADD I got a message from a um a journalist saying I'll see you at the uh Awards and I said U MADD will be raising the flag for us but um JD and I are very cynical on Awards we assume they're all bribed these days I I am hoping to get this one for free so nothing dodgy happening righto partners partners boys Partners how good a bloody partner paying cash love it mate DSi underground ter Capital mcmah mining Title Services future proof Consulting anytime exploration services KCA S Services JP Brooks Airways and CAD thanks Bunch spons work the information contained in this episode of money of mine is of General nature only and does not take into account the objectives financial situation or needs of any particular person before making any investment decision you should consult with your financial adviser and consider how appropriate the advice is to your objectives financial situation and needs

all West Africa rep West African gold could be boys the new lith it's all happening today in West Africa and East Africa African gold we should do the intros more often afterwards you're more fir I just want to get right in crack a tin bloody love it right we're getting into like pereus are into aorp now Tito's independent expert report is released yep reject reject don't touch their same don't touch it mate on the junior end which you love JD Toco they've acquired a bit of Grand in quir and raising a bit of raising some bucks and uh nothing to do with African gold morning ays uh topping up the topping up the kitty raising a couple bucks as well I'm excited mate live m&a like you know third parties getting involved want wanting to have a say oh mate this is um I love this stuff you know who else you know who else is excited I'm excited Sheamus Murphy I'm even he says he's excited don't worry boys I B I'm excited there's a bloody free one for you for the week Sheamus yeah right now a bit of info has come across me desk the stuff that gets sent into me these days just from the great supporters it's Sensational right apparently apparently there is a regulation in the wa morning act 1022 where you can exemption from your expenditure conditions on the basis of bankruptcy liquidation Andor Insanity wow this was your weekend reading this is mate unbelievable I've procured a bit of a cartoon that is uh pertinent to this Clause look at this look at this now in the tough Capital markets that we're we've seen like MDS are like could be prone to pretty much go under the Looney Bin the pressure is on that pressure is on you end up in a bloody little straight jacket in a padded wall there mmts now like they've had this service the whole time and it's one that we haven't talked about they can help MDS any any company that is pretty much gone off the wagon or on the wagon which I always get confused about that pretty much lost their and they can help them apply to get like the expend exempt from expend because um they've pretty much gone insane M I've got to say is that caring for the industry or not it's definitely caring for the industry duty of care for the good people of the industry The Good the good people that are just a bit down on their luck and the share you get 5,000 shareholders ringing you each day telling you how much of a bloody  you are cuz they've lost their money like that' be enough to send you to what you know a facility um mmts are here to save you can I just can I just clarify right like I mean we all know how nich our show is we're talking about Daily Mining news not many people in the world care about that but now you're pitching to the MDS of those companies who think that they might be going bankrupt insane or the companies approaching liquidation be fair I'm not recommending how to handle it but if you 50% of our audience if you go bankrupt or bankrupt or you're going into liquidation there is an option you could just tick the insane box and maybe save a bit of face you need mmts help on that yeah I think so yeah so anyway if you are actually sane and you're not going insane mmts can also help you as well just for everyday mining title compliance pick up the phone give mmts a call all your title service related queries they can sort you out you don't have to be insane right you don't have to be insane you can be perfectly signed and they can just help normal normal signed people as well say what a what a diverse offering Che before get leading up to Christmas I'm going to put the call out to the East Coasters that see bondie at the Paragon or something after work we're got to do the Bondi tell all is this your Christmas this will be a Chistmas Christmas present for me or we want to do the bondy tail or Terror Capital while they're not bloody investing in natural resources based on every news article it appears they invest in uranium cuz every news article about terror is about uranium but I we need to have the Bondi tell we've had the langers one we've had the DK one it's time for bondie to open up open up don't go to all these Legacy Media joints bondie come to the new age podcast and tell your story there's so many companies out there with great stories I've heard I might have heard that one right bondie come to Perth tell the bondie tell yeah do it in person sit right here yeah yeah make you comfortable and then we'll go we'll shout the BD afterwards got some dingos in the fridge right right thanks Tera for all your support bondie come over if you see bondie Heckle him tell him he's got to do his money in M shot let's rip in right let's get into this African god the new the new bubble is this the new bubble is it the new thematic African go let's hope so for I'm not quite so hopeful but money of first Movers yeah well this one this one's what's the update on the or Corp thing we're going to start in Tanzania Maddie so as we spoke about in August and then again last week a couple times or Corp have been bid by Silver Lake uh silver Corp rather they initially bid in August and they're put in another kicker after a bit of the uh bit of shareholder Revolt from the the major shareholders Nick Georgetta and Tim goer and now it's turned out that uh persus has come in with a what was this morning a 15% stake and what we've just seen updated to a a 19% stake so as a quick reminder we're talking about the nyang zaga gold project in Tanzania it's 40 million tons in Reserve at 2 G per ton for a 2.6 million ounce project and they were looking to produce 234,000 ounces over the first 10 years roughly so not not bad numbers I persus have they've acquired that um stake the initial 15 and now 19 just days after silver courp agreed to that 4 bump in cash consider ation of their existing offer to um or Corp shareholders AFR reported that the first 15 they picked up from Federation which is that o super backed entity um not sure where where they got that extra five from or four or five from uh that's just come out now but um yeah I mean interestingly when when oror opened in early trade it was down 10% and persus they've stated this is is not currently that it's not currently in active discussions with oror it does not intend to submit a change of control transaction in competition to the current silver corpse scheme um and it intends to vote against the silver corpse scheme which means that they're they their stake is um it's going to be it's going to more than guarantee a block in the in the scheme so okay so if we go off the fact that it was down 10% at the start not sure what it is as we're talking and the fact that it's that bit of as we said at the start of the show bit of a it's like a bit of a Chris Jina tactic let's just take this uh majority control minority control but enough of control to block any m&a take control possibly look at a whether they're looking at a JV or a future takeover but shareholders now thinking oh gez this might be the kicker we were looking for for the takeout what do you think boys I I think there's um there's two possibilities of what we could actually infer from P's intentions and one of them you're right about that Christina um tactic right so like for the purposes of the scheme vote going ahead it's definitely like a blocking stake based on any expected voter turnout given persus say they aren't intending to submit their own change of control I think it's one of two things one is that uh persus are wanting to form a a joint venture or similar with silver Corp and provide a development pathway together for nin zaga keep in mind persus does have better funding capability better balance sheet there's like fears that silver Corp would need to dilute its shareholders further to fund the capex for that project well persus obviously has plenty of cash so you can see some Merit in that and the other Theory Maddie is um to your point persus is buying some time to submit its own bid but it won't do so without getting access to due diligence which it can't do while or Corps deal with silver Corp is on foot unless it submitted its own bid however it won't submit it own bid if it doesn't have access to DD so this is the way you can block the deal and ultimately get get access to DD this is similar to that you know sort of chriso approach you take a small stake of effectively block the m&a once the deal with silver cor is off persus can submit an MBI to the board request access to DD keep in mind assuming silver Corp remains a shareholder um throughout this persus would need to actually lob a bit high enough for silver Corp to accept themselves so should they go down this route until the um silver Corp deal is off the table the board is restricted from um you know there's that no shop no shop no talk um characteristics of the scheme uh implementation deed so they're they're prevented from kind of having these discussions unless there's that fiduciary out for the fiduciary out to happen there needs to be a bit on the table which there's not need to so they need to put a bid in without DD the only way that the only option perers have in contrast to buying the steak right now yeah I think that would that would warrant access well that would that would yeah yeah and right now it looks like they're not willing to to lob a bid without access to D you know I kind of thought in my head that that maybe they'd done DD before maybe there was a d room before the silver cor deal and I I don't know these are just the two theories that are um in my head at the moment yeah and this is all part of as we've talked about before Percy looking to diversify the African exposure yeah that's it I don't think they've got any intention of leaving Africa but in terms of in Africa they previously had the the sudin project which had fallen over we're going to talk about Tito later on you might ask why they not having to go there Y and I think you know the answer would be that they don't want to concentrate they don't want to go to three assets within the one Country CA there so this would be spreading their risk across Africa and just on the timeline of this it's going to happen pretty quickly as we touched on when the kicker went in the the timeline didn't change at all so from memory the the voting's going to be done by 8th of December so in the next couple weeks we're going to going to find out whether that silver Corp deal is going ahead and you know seem quite likely that that it wouldn't given what persus has said but yeah it should be interesting to see how um how persus go about negotiate whether they want a JV or what a strategic partnership could look like right let's get on to TI then good what what an African gold segue so they've come out today saying that the with the target statement saying directors are recommending to reject the off-market Takeover bid by Zin Capital so as we've talked about before they've got the the Abuja gold mine in Coto they haven't had the best ramp up with that project they've had seasonal issues they've had low grade reconciliations than what was sort of first expected and outlined and in in tandem navigating their way through all the artisanal old workings plenty of wood and going through the bloody Mill sounds like a lot of bloody fun it's pretty reflective of the uh the share price over the past year it's just been trudging down and down and down as you know they'd failed to meet the first quarter guidance second quarter guidance and all of that so they they were when we first spoke about them that that's when they they were on the decline and it appeared like with I guess there was a change in management there was an updated life of mind plan coming out so it looked like a bit of a getting a bit of balance back in like the the June quarter head gray was 0.68 G per ton so they updated mine plans for 1.04 so it's like a very it's a low grade one so so they decided to really drill out the thing at a much closer spacing to get a much better understanding and as well the production profile became much more consistent in around 170,000 o perom as opposed to jumping around from 200 to 140 to 180 over the uh you know the the life of mine look at but how good is it when you if you don't drill it out enough like it's a w so you don't drill it out enough you can't figure out the grades lower and it's cheaper what a that's what a way to do it so anyway look like and following on from that that's when this uh following on from that turnaround that's when Zin uh put in the non-binding off Market take over four uh at 58 cents cash offer so they were an existing 7.25 5% shareholder yeah and that that 58 cents valued the the whole business at 629 million yeah and now the I guess the key part in the Target statement today is the independent expert has deemed the offer is not fair and not reasonable uh for the Tito shareholders and they've assessed the fair value of Tito shares to be in the range of 79 to 93 cents so they're sitting at a bit about 61 I think in early trade today so that's a a 36 to 50 9% premium to the unsolicited offer so yeah they they're looking at a value between 900 and 1.05 billion for for the whole business yes so I'll put up the the key reasons put in this target statement of why Tito shareholders should reject the offer per the board the what per the board per not our reasons no this is the board the board's reasons so number one zens offer materially undervalues to pretty much every MD says that um zin's offer is opportun opportunistically timed can you say that properly opportunistically that's heaps better well done Trav um two of TI's major shareholders uh who hold 18.73% of shares do not intend to accept the offer at that price the offer is subject to another conditions regulatory approvals in China and Coto and therefore is uncertain whether the offer will ultimately proceed if you accept the offer give you risk missing out if a superior proposal comes from a third party we can discuss that and if you accept the offer you may pay tax on any gain you crystallize in The Current financial year now pretty standard pretty standard um reasons to reject with other offers as you mentioned JD why or would pereus look to this or not look to this mine yes so like we touched on before I can't imagine Perseus will lob a b just for the the pure reason of not wanting to concentrate their risk in Africa within the one country they've already got the two mines in in the Ivory Coast there and from how we'd spoken about the asset in the past a lot of people that we know who have a geological background they didn't like the uh the or body they thought it wasn't drilled out with enough confidence they have done a fair bit to uh you know alleviate those issues for shareholders but you know if you were a shareholder it's coming a little bit too little too late the the share price had dropped from 90 odd cents all the way down to to 35 and all all funded by Equity exactly ex a little bit of debt afterwards but yeah later yeah it it was an interesting financing strategy for sure yeah and in in terms of potential other biders out there I'm not sure about you guys but I struggled to see anyone on the ASX that would have a go not to say that there wouldn't be TSX or American listed businesses that would look at this one but just for the um the miners that we know that have substantial cash balances or you know access to debt it'd be it'd be hard to imagine you know we're talking a pretty significant value well over 600 million closer to a billion dollars now yeah so like yeah it's a billion dollars for a one gr deposit so obviously obviously comes with and add the jurisdictional risk it does come with its risks not saying that no one will go for it but there's obviously a bit more every it's one of those ones that sort of everything has to really really go right but drilling it out properly is the first step towards making that happen it helps it's I read it as um it's for sale now that you know there's this live bid um the board obviously recommend to reject um that's like the Playbook and you try to get a value uplift to something more more palatable to shareholders along the way but at the same time it's an invitation for someone else if they're interested to lob a high bid too so um let's see how it play plays out for shareholders I'll tell you a funny Tito Share story that I'm involved in I think I know this one so when we first did the episode and like like I'm like that was the one I actually went deep into research jez I learn a lot when I actually research who would have thought um and I was like  like this is they drilled it out there's an updated plan it's been fully it's been diluted to the house with how much Equity raising and financing was done and what this might be a buy here and this is when the stock had got down to between think it was 30 30 sense so I put a buy order in for 29 and one share went and then it and it went 3132 and I missed out on it and it kept going up I'm like should every other share I buy goes down eventually and and it didn't trigger and then it went then the Takeover offer come in at 60 so I could have been in at 30 or 31 at 60 now so oh I've got one I have one share in Tito one that I got for 30 something cents mine is all the I think it cost me 15 bucks because of the breaker so it I'm not sure I can trust your incentives on the your reporting on this story technically I've got negative you got the highest cost basis of anyone paid 20 bucks for that Bloody it's very much in your interest for TI bort to reject this one so you can get a better price I can get me better price on me one share so I need to go needed to go up to 20 bucks to cover the brokerage oh de devastating times for M all right West Africa it continues too well this is on the on the junior end so this it was just pertinent that were talking about it today so they they already had some ground in Co in and around Cod and they announc anounced last week they're requiring 70% of the FEMA gold project in codo from Endeavor mining so one half uh what is it us one and a half bucks and they're issuing uh 465 million terraco shares subject escro to Endeavor so Endeavors there cuz their Market Cap's us 5.3 billion and they're going to become a 9% shareholder in Taco so look had a big run on the announcement last week as you see but wait in a trading halt today to raise money who would have seen that coming clock you could read I think they had three and a half million cash at the end of the quarter but then paying one one and a half bucks us for this purchase and obviously yeah who would have thought I haven't seen the term sheet of that there so there's just it's a bit happening in that little West African region inir well there's two things happening that we've talked about m capital raising so yes be interesting to see how this plays out and what Percy as you said to sum it all up what is Perseus up to with this 20% stake will they be looking elsewhere as well are they going to struck in this time yeah it's interesting to see all the the corporate action given the depressed valuations across across Ross Africa in West Africa in particular speaking of another couple of bucks that are getting raised Trav AIS AIS yeah raising 30 bucks today Maddie uh they had a pretty um pretty hard time of like we've discussed it many times on our podcast and probably don't need to rehash the operational WS that have that they've faced um today but recalling their last quarterly the quarteron quarter cash position was relatively neutral topot drawing down new facility with um wh so Pats repa um a different debt facility but Drew down a larger one uh today looks like they're trying to repair the balance sheet with $30 million raise at a 27% discount it's 11 cents isn't it right yeah so I think when we talked about them last when we talked about the I think it was the quarterly when um things were going so well I think they 20 21 cents now they're raising at raising at 11 so they previously traded at 15 yeah so wh so Pats they're taking up their entitlement they're underwriting the ret tell component of the raise which should see their stake rise up to 33.2% depending on how much they ultimately um get in a shortfall and the structuring of it is quite interesting so they've structured the raising as an anrio plus a placement together what does that mean well it basically means um they get the money from the placement and the institutional component of the anrio in a week's time so they're maximizing the money that comes in the door um ASAP or up front there's a funny rule when you do a placement and an enryo together you can get an uplift in your placement capacity um it can be based off your pro former shares and um and you can see in a waiver that uh that Aries has gotten from the ASX that they're actually get making use of this higher placement capacity as well so really maximizing the early money in the door there there's also a bit of a a signal from from how they're going about this and to me that reads that they need cash and they need it quickly yeah I think that's a a fair read through just just based on the equity um raise structure um the use of funds is really interesting on this one it's in quotation marks General working capital and increased Financial flexibility is the uh the use of proceeds it's very nondescript um for those quickly wondering why you know Soul Pats has such a big stake they were the ones that had vended in you know round oak the the Assets in and they're sort of following their following their money right correct it it's notable um like if you look at their proformer balance sheet they'll have 50.5 million in cash and 40 million of drawn debt at the end of the raise so hence 10.5 million in net cash position but it's notable that in the in the use of proceeds it's not like that use of proceeds is to pay down any of the debt facility so that $40 million drawn debt actually still stays there and remains bit of a risk areas I think that debt facility is um is with so Pats like like we mentioned who are supporting the raise the question for wh Soul Pats do they help areas Equity or or do they let them suffer and potentially take back the assets VI an Administration process for now at least you know they're choosing to help Aries and so let's um let's hope things turn around for for Aries sometime soon is that is that a form of protection in a way that the largest shareholder is actually the debt provider as well so they don't protects them from getting called upon in yeah I think you have more alignment to shareholders if if the debt provider also has a a chunky bit of equity that they're trying to protect as well yeah do see that as a positive um for sure yeah yeah right boys love your bloody work right uh couple of sponsors to thank oh mate we got a bloody end of the week go to the ACH Awards to pick up our award jeez if if I go to the event and I don't bloody we don't win it I'm going to be spewing I'm never going again it's bad luck to claim the award before I'm not claiming it but like Jesus if I go and we don't win it like that's I'll be spewing we've got a couple uh interesting interviews that we can um give a bit of a preload to as well our we got a friend from North America coming over that might be it might even be a two-parter that we released this week I'm over via Zoom yeah am I super your friend oh that oh another oh not that one we got another he's coming here in person oh yeah yeah but we got the um and another American one this week big Mr lith coming back on for another run via Zoom that one that is he might fly over he does love us yeah and uh what else is coming up oh that's that's quite a bit on your note on the awards MADD I got a message from a um a journalist saying I'll see you at the uh Awards and I said U MADD will be raising the flag for us but um JD and I are very cynical on Awards we assume they're all bribed these days I I am hoping to get this one for free so nothing dodgy happening righto partners partners boys Partners how good a bloody partner paying cash love it mate DSi underground ter Capital mcmah mining Title Services future proof Consulting anytime exploration services KCA S Services JP Brooks Airways and CAD thanks Bunch spons work the information contained in this episode of money of mine is of General nature only and does not take into account the objectives financial situation or needs of any particular person before making any investment decision you should consult with your financial adviser and consider how appropriate the advice is to your objectives financial situation and needs

Transcript for:Recent Trends in West African Gold Mining

Transcript for:
Recent Trends in West African Gold Mining