I have had 3 RNS today, 1 from Greencore and 2 from Red Rock. The Greencore one was mildly good as it stated that Sheffield Partners had slightly increased their holding and it had crossed the 5% threshold!
The first from Red Rock was that they were issuing another 16,666,666 shares to raise 1M GBP and the second was a total voting rights RNS saying that they now had 723,983,283 shares in issue! I rang them to find out why they needed to raise more funds but no-one was available but later on the LSE board SpikeyDT posted this letter from them explaining the need for cash.
You may have seen that we issued shares at 6p today, in a placement to raise £1m before expenses.
Apart from our recent exercise of the right to acquire 51% of Mineras Four Points SA, we have a continuing exploration programme, and had a tax bill of over £800,000 to pay (a problem of success!), so our outflows in the first half of 2011 have certainly exceeded what we planned for at the beginning of the year.
We have been arranging, as we announced, a long-term facility which we want to complete soon. However, as our financial year end is 30 June, we need a plan B in case the receipt of funds from this facility is after rather than before 30 June, since we have to publish our balance sheet as at the end of June, and there is little point in spending more this year on a better produced and more informative Annual Report if the first page people turn to does not give a fair picture of our underlying financial strength.
You may have seen the encouraging upgrade and expansion in Resource at Resource Star’s Livingstonia uranium project, announced yesterday. We hope soon to have similar news from Cue. At the moment, uranium is not to the market’s taste, but outside the OECD delays to the building programme for nuclear reactors are not expected, and that is what counts, not Germany.
Jupiter continues to make great progress, but this has not been reflected in the share price. We believe the quality is there, and quality will out.
In Colombia, the improvements from here we hope to be in leaps and bounds rather than tiny steps, as has been the case recently. Progress is progress, but rapid progress is what was needed and what we now aim for.
In Kenya, the exploration effort is so intense that although we have staffed up, we are always undermanned, but as we have consistently said, there should be a steady news flow in the second half of the year and we have great ambitions for progress.
Greenland sees a virgin exploration territory getting attention from our ten-man geological team. We had encouraging results recently from the satellite ASTER interpretation, with one 3.5km feature previously mapped as sandstone (to take just one example) now understood to be a prominent iron ore feature and therefore a priority target. If we map and sample and find no major targets at the end of the season, we may of course walk away, because there is no point in such a latitude looking for anything but a major deposit, but we have fair prospects of success.
So the message is that all is well, and we see steady progress. We cannot blame shareholders who are impatient with the share price, and hate to see us raise money at low prices, but in sailing our boat we sometimes have the wind behind us and sometimes in our face, and we have learned, like sailors, to be patient. T
So, it seems reasonable and the letter was quite upbeat. Lets hope that the sp moves north after the shares are admitted to the market next week.
The first from Red Rock was that they were issuing another 16,666,666 shares to raise 1M GBP and the second was a total voting rights RNS saying that they now had 723,983,283 shares in issue! I rang them to find out why they needed to raise more funds but no-one was available but later on the LSE board SpikeyDT posted this letter from them explaining the need for cash.
You may have seen that we issued shares at 6p today, in a placement to raise £1m before expenses.
Apart from our recent exercise of the right to acquire 51% of Mineras Four Points SA, we have a continuing exploration programme, and had a tax bill of over £800,000 to pay (a problem of success!), so our outflows in the first half of 2011 have certainly exceeded what we planned for at the beginning of the year.
We have been arranging, as we announced, a long-term facility which we want to complete soon. However, as our financial year end is 30 June, we need a plan B in case the receipt of funds from this facility is after rather than before 30 June, since we have to publish our balance sheet as at the end of June, and there is little point in spending more this year on a better produced and more informative Annual Report if the first page people turn to does not give a fair picture of our underlying financial strength.
You may have seen the encouraging upgrade and expansion in Resource at Resource Star’s Livingstonia uranium project, announced yesterday. We hope soon to have similar news from Cue. At the moment, uranium is not to the market’s taste, but outside the OECD delays to the building programme for nuclear reactors are not expected, and that is what counts, not Germany.
Jupiter continues to make great progress, but this has not been reflected in the share price. We believe the quality is there, and quality will out.
In Colombia, the improvements from here we hope to be in leaps and bounds rather than tiny steps, as has been the case recently. Progress is progress, but rapid progress is what was needed and what we now aim for.
In Kenya, the exploration effort is so intense that although we have staffed up, we are always undermanned, but as we have consistently said, there should be a steady news flow in the second half of the year and we have great ambitions for progress.
Greenland sees a virgin exploration territory getting attention from our ten-man geological team. We had encouraging results recently from the satellite ASTER interpretation, with one 3.5km feature previously mapped as sandstone (to take just one example) now understood to be a prominent iron ore feature and therefore a priority target. If we map and sample and find no major targets at the end of the season, we may of course walk away, because there is no point in such a latitude looking for anything but a major deposit, but we have fair prospects of success.
So the message is that all is well, and we see steady progress. We cannot blame shareholders who are impatient with the share price, and hate to see us raise money at low prices, but in sailing our boat we sometimes have the wind behind us and sometimes in our face, and we have learned, like sailors, to be patient. T
So, it seems reasonable and the letter was quite upbeat. Lets hope that the sp moves north after the shares are admitted to the market next week.
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