Addendum to previous post:
~ Correction, the Company never paid Ion Minerals re: the totals as described as the were for a 100% earn in.
What was paid:
Initial payment of $25,000 as a non-refundable deposit
~ Phase 1: 40% Earn-In
(i) 110,000,000 shares in GPP
(ii) Cash consideration of $510,000
GPP entitled to move to Phase 2 after expending $500,000 on exploration works
~ Phase 2: 70% Earn-In (cumulative)
(i) issuing shares in GPP equal to $550,000
(ii) Cash consideration of $310,000
GPP entitled to move to Phase 3 after expending a further $1,500,000 on exploration works
~ Ashburton:
(i) 250,000 for 100%
(ii) Option agreement with Zenith Minerals for a further 4 Exploration Licences (applications)
~ $30,000 cash & $30,000 GPP equity upfront for a 1 year option to purchase 70%
~ $100,000 minimum expenditure to keep the project in good standing
(iii) A further $30,000 cash & $30,000 GPP equity to extend option 1 year
My calculations and the Company's Impairment value don't quite match up, surely "cash consideration value" would be included in the cost of the impairment? ie: 110,000,000 shares issued at $0.005 = $550,000?
As the Company were entitled to move to "phase 2" (70% cumulative earn-in) would that then deem that they had made the payments " as above"?
Just on Phase 1, the Company has expended $1,560,000 total?
Ashburton ~ $280,000 Cash & $30,000 GPP equity = $310,000
Total $1,870,000 Exploration & Asset Valuation impairment? versus $948,133 actually impaired (annual report)
MEH
MEH moment #2 ~ from announcement of exiting projects:
McLean comment "After careful consideration the Company is relinquishing non-core assets in order to focus on what will deliver nearer term shareholder value. Ahead of the name change to Great Northern Minerals the decision demonstrates our commitment to establish a new goldfield in the Northern Queensland region and this signals an exciting new era for the Company and its shareholders."
Announcement 30th October 2019 ~ Greenpower to Exit Cobalt, Vanadium and OHD Projects to focus on North Queensland Gold Mines
https://www.asx.com.au/asxpdf/20191030/pdf/44b1lf9d9xfsqy.pdf
Share price $0.009 @ 27th October 2019
Since exiting the Cobalt, Vanadium and OHD projects, how the Company have progressed to "deliver nearer term shareholder value."
~ 1st November 2019 - Non Renounceable Rights Issue ~ 58M @ $0.01 ~ Share price $0.0095 @ 1st November 2019
https://www.asx.com.au/asxpdf/20191101/pdf/44b6ty5gfhcrdx.pdf
~ 14th November 2019 - Company reminds shareholders of closing date of rights issue ~ Share price $0.0095 @ 10th November 2019
https://www.asx.com.au/asxpdf/20191114/pdf/44bl660lyjztwp.pdf
~ 25th November 2019 - Results of Rights Issue, and keeping to form, another poor shareholder involvement with only circa 23,466,000 from 58,044,861 applied for a paltry 40.43% ~ Share price $0.009 @ 24th November 2019
GPP have a history of poor credit raises with poor shareholders participation, baring (from memory) the hype associated of the Guyana acquisition.
~ 2nd March 2020 - Great Northern Minerals reduces overheads by 34% ~ Share price $0.006 @ 1st March 2020
- McLean commented: "The Company completed a thorough review of its outgoings and has achieved a substantial reduction in the running cost. This result ensures that the capital that is invested in our projects is optimised." Included in the announcement the company substantially reducing its administration costs. The previous quarter circa $400,000 was spent on non-exploration (rebranding, consolidation, equity raise) but allegedly, the savings relate to a regular month. A regular month!, so the company saves money on administration for a month and 7 days (yep, 7 days) later announce a Corporate Update:
To which King has resigned, and replaced by Robinson ($120k pa) and the "new" position of a Technical Director ($200k pa plus super) I guess the 34% reduction in running cost (administration) was to make way for the salary of the new director? because it was short lived and equates to a 54% increase in salaries, which BTW is part of the administration costs that the Company had just announced they had made savings on .....
https://www.asx.com.au/asxpdf/20200309/pdf/44fw0spqq7c480.pdf
~ 9th March 2020 - Capital Raising in two tranches ~ Share price $0.005 @ 8th March 2020
- Placement 266,733,833 @ $0.006
- Rights Issue 1:4 to raise $650,505 (same terms and conditions as placement)
https://www.asx.com.au/asxpdf/20200309/pdf/44fw0spqq7c480.pdf
~ 23rd March 2020 - Non-Renounceable Rights Issue & Options Offer Prospectus, this is a Prospectus for the Rights Issue announced on the 9th March, for a Company "allegedly" saving money, why have the wasted cash to produce and announce a Prospectus that is only available to current shareholders? Not as if we weren't aware of what projects the Company have? None the less: Share price %0.005 @ 22nd March 2020
https://hotcopper.com.au/threads/ann-non-renounceable-rights-issue-options-offer-prospectus.5306950/
~ 27th March 2020 - Technical difficulties and the Rights Issue was deferred - Share price $0.006 @ 29th March 2020
https://hotcopper.com.au/threads/ann-gnm-rights-issue-timetable-deferral.5310292/
~ 9th April 2020 - Extension of Rights Issue Closing Date and Salary Review - Share price $0.006 @ 12th April 2020
Pandemic related delays, the Company has extended the Rights Issue, also in this announcement "The board has decided that with the recent changes to the Company's corporate structure salaries of the Managing Director and Executive Director will be reduced by 25% effective immediately."
https://hotcopper.com.au/threads/ann-extension-of-rights-issue-closing-date-and-salary-review.5337670/
The reduction in salaries has certainly proved fruitful (insert sarcastic face here)
Salaries as reported in the company's annual reports: 2019 - $434,826 2020 - $435,821 - inclusive of superannuations and options (valued using the Black-Scholes Model) With the announcements of the Company reducing salaries (as above) they weren't really successful,
~ 24th April 2020 - Non-Renounceable Rights Issue Offer Update
https://hotcopper.com.au/threads/ann-non-renounceable-rights-issue-offer-update.5359486/
A previous post : https://hotcopper.com.au/threads/ann-non-renounceable-rights-issue-offer-update.5359486/page-2?post_id=44290404
~ 28th April 2020 - Non-Renounceable Rights Issue Closure and Results - Share price $0.006 @ 26th April 2020
https://hotcopper.com.au/threads/ann-non-renounceable-rights-issue-closure-and-results.5365477/
There were 108,417,449 shares offered under the Rights Issue, 29,885,909 share were subscribed for ~ making it yet again another credit raise that was poorly supported by the Shareholders @ 27.56%
~ 24th June 2020 -Proposed issue of Securities - Share price $0.018 @ 21st June 2020
Placement of 100,000,000 shares issued at $0.014 to raise $1,400,000 @13.5% discount to the 5 day VWAP
~ 31st August 2020 - $1.6M Institutional Placement ~ Share price $0.021 @ 31st August 2020
https://hotcopper.com.au/threads/ann-1-6m-institutional-placement.5593220/
~ 22nd March 2021 - Placement & Rights Issue - Share price $0.01 @ 22nd March 2021
https://hotcopper.com.au/threads/ann-capital-raising-to-accelerate-camel-creek-exploration.5970488/
~ 5th May 2021 - Results of Rights Issue - Non-Renounceable Rights Issue Offer Closure and Results - Share price $0.009 @ 5th May 2021
151,131,372 shares were offered, 56,815,083 subscribed for @37.6% ~ GPP/GNM continue to try and raise funds with poor shareholder support.
https://hotcopper.com.au/threads/ann-non-renounceable-rights-issue-offer-closure-and-results.6044636/
Post consolidation there were 822,087,117 FPO SOI as at 30th June 2020,
Shares issued during the financial year 386,963,859 for a total of 1,209,050,976 FPO SOI as at the 30th June 2021
Options outstanding 106,987,242
Fully diluted 1,316,038,218 shares ...........
As at the 30th June 2020 - Jetosea, the largest shareholder held 151,665,574 @ 18.45% as per the last "Change of Substantial Holder Notice"
https://www.asx.com.au/asxpdf/20210820/pdf/44zjd3xs5bz9r4.pdf
20th August 2021 - Jetosea has reduced shares held to 89,773,761 @ 7.43%- Share price $0.01 @ 20th August 2021
And here we are:
8th December 2021 - yet another placement, 500,000,000 shares issue @$0.006 at a 23% discount to the 15 day VWAP, plus 40,000,000 lead manager options.
Increasing the fully diluted SOI @ 1,856,038, 218 shares - Share price $0.006 @ 10th December 2021.
Just to recap:
McLean comment "After careful consideration the Company is relinquishing non-core assets in order to focus on what will deliver nearer term shareholder value. Ahead of the name change to Great Northern Minerals the decision demonstrates our commitment to establish a new goldfield in the Northern Queensland region and this signals an exciting new era for the Company and its shareholders."
Since the announcement to exit the Cobalt, Vanadium and OHD projects - which was the 27th October 2019 the share price has gone from:
Share price $0.009 @ 27th October 2019 to the current share price of $0.007c over 2 years 1 month and 14 days.
In that period the SOI has gone from 822,087,117 to 1,856,218 when the tranche 2 (200,000,000) shares and 40,000,000 options are approved by shareholders.
At least shareholders have the opportunity to vote accordingly (to align with personal sentiment) by either voting in favour or against the issuance of the Tranche 2 shares (200,000,000) and in favour or against the issuance of the options (40,000,000)
Also, since the Company acquired the ION Minerals & their projects, (5th July 2018) they have raised $? to progress projects before deciding they were duds and exited and moved onto the "new" hot commodity ~ gold acquisitions ... more capital raising, more share dilution, more of everything except any acceptable progress (IMO) The Company was well funded at the date of ION acquisition with circa $3,400,000. .......
1/4/2019 ~ SPP to raise $1,000,000
https://www.asx.com.au/asxpdf/20190401/pdf/443xyv29y835nv.pdf
~ shareholder subscription of $199,000 (circa 20%) and a further $500,000 shortfall shares placed leaving $301,000 unsubscribed for.
3/9/2019 ~ To raise $1,360,000 by way of a $900,000 placement and a $460,000 Rights Issue,
https://www.asx.com.au/asxpdf/20190903/pdf/4485sp9hr61zqs.pdf
~ but then increased amount for the Rights Issue to $580,000 in the Prospectus.
https://www.asx.com.au/asxpdf/20191101/pdf/44b6ty5gfhcrdx.pdf
~ Shareholders subscribed to $234,230 (40%) leaving the Company to place the shortfall of $345,770.
https://www.asx.com.au/asxpdf/20191125/pdf/44bwttp8p2qwyt.pdf
9/3/2020 ~ Placement & Rights Issue (4:1) to raise $2,230,000
https://www.asx.com.au/asxpdf/20200309/pdf/44fw0spqq7c480.pdf
~ I personally think it is hilarious that prior to this announcement the Company announced cost cutting measures (See above) but in the whole time span of a month appointed 2 new KMP's while simultaneously holding the cap in hand for another capital raise.
~ Placement of $1,600,000 and Rights Issue of $650,500 with only receiving subscriptions (RI) of $179,315 (27.6%)
~ Shortfall $471,189 was placed
24/6/2020 ~ Placement to raise $1,400,000 - funding secured for drilling program (brought forward)
https://www.asx.com.au/asxpdf/20200624/pdf/44jx3w2gznc8zk.pdf
~ Share placement using Company's placement capabilities (ASX 7.1 & 7.1a)
31/8/2020 ~ $1,600,000 - Institutional placement to accelerate exploration at Gold Projects (again)
https://www.asx.com.au/asxpdf/20200831/pdf/44m3xlp99dptn6.pdf
~ funds raised to accelerate gold projects and working capital
~ strong support from "specialist institutional funds" as we accelerate the exploration program Gold projects
- specialist institutional funds means what exactly?
22/3/2021 ~ Placement and Rights Issue (1:7) to raise circa $3,000,000 to accelerate Camel Creek
https://www.asx.com.au/asxpdf/20210322/pdf/44tw5d205p8bzy.pdf
~ 56,815,083 share subscribed for from 151,131,372 on offer (37.6%)
~ remaining shares allocated under shortfall placement
8/12/2021 ~ Placement to raise $3,000,000
Shares will be issued in two tranches -
(i) 300,000,000 Tranche 1 shares issued pursuant to ASX listing rules 7.1 & 7.1A
(ii) 200,000,000 Tranche 2 shares AND 40,000,000 lead manager options ~ conditional to share holder approval
The company has over the last 3 year raised capital 7 times: 2019 - 2, 2020 - 3, 2021 - 2
~ Placements to institutional and sophisticated investors on 6 occasions
~ SPP / Rights Issues on 4 occasions, with on average shareholders only subscribing to 31.3% of shares offered
~ Funds available at time of ION acquisition = $3,400,000
~ Funds raised via Capital Raises = $13,390,000
~ Funds received ie: R & D, Sales, etc
(i) R & D refunds: $281,754 (2019) $223,835 (2020) $155,720 (2021) = Total $661,309 ~ related to the OHD project, our taxes at work (shakes my head) getting R & D funds on a project that the Company exited October 2019!
(ii) Sale of Royalty $125,000 (2019) $159,500 (2020) 0 (2021) = Total $284,000
(iii) Other receivables $111,000 (2019) 103,720 (2020) = Total $214,720
(iv) ATO Covid Cash Boost $39,712 (2021) = Total $39,712
All up, the Company has managed to
~ eat through $14,989,741 in 3 years, hence the latest Placement to raise another $3,000,000
~ increased the SOI back to circa 2,000,000 (fully diluted)
~ have a share price of $0.005 at time of acquiring ION to current share price of $0.007, not forgetting that shares were consolidated.
9/4/2020 ~ Extension of Closing Date for Non-Renounceable Rights Issue Offer and Salary Review
The Company announced the salaries of the Managing Director (McLean) and the Executive Director (Coxhell) will be reduced by 25% effective immediately. https://www.asx.com.au/asxpdf/20200409/pdf/44gvq10h7h8pxz.pdf
~ Both have a service agreement that entitles them to receive a Director's Fee of $200,000 per annum excluding superannuation.
For the year ending June 30th 2020 the reductions in salaries were evident in the Annual Report.
(i) McLean - $200,000 per annum - 25% = $150,000 but as the reduction started in April (last quarter of financial year, or for 3 months of the full year) equates to a full year salary of $187,500 which is what was reported.
(ii) Coxhell (appointed 1/4/2020) - $200,000 per annum - 25% = $150,000, same as McLean, the salary reduction started in April (last quarter of financial year, or for 3 months of the full year) equates to a salary of $37,500 which is what was reported.
~ There was only the one paragraph in relation to reducing their salaries by 25% "as above" - and as there has been no other "salary reviews" since (unless someone can point me to one) then it would be a fair assumption that the reduced Director Fees would be ongoing? This isn't the case as both McLean and Coxhell have returned to their full salaries as reported in the Company's 2021 Annual Report @$200,000 per annum, making it a very short lived token pay cut?
~ The lack lustre performance and depreciating share price is also impacting the intended use of "options", options are a tool that the Company uses to add a little sugar to a Credit Raise and in doing so it also adds a cash generation when the options are exercised, of late, announcements are to advise that options have expired.
cheers
