There is an * against the statement RE 100% ownership. The footnote states *Binding agreements executed for KKO to acquire balance of Afro Energy (Pty) Ltd. Meaning the companies have agreed to the acquisition and it is currently being processed. These things take time.
How can it be diluted when they are doubling their rights/ownership of the resource?
49% = 698m shares on issue.
100% = 1.2bn shares on issue (some of which is reserved for soph's, I think around $6m in value @ current SP).
Makes perfect sense to me... Upon de-risking and firming up their reserves this will take-off.
Look at a comparable business. Strike energy have over 2bn shares on issue and are valued at $0.32 today... their gas is many times deeper than ours, they need to build processing plant and infrastructure and they've only identified 0.1tcf (2C). Compared to our 4.9tcf (2C), shallow deep pocket gas amidst existing plant and infrastructure - I'd say things are looking good.
Ann: Update - Proposed issue of securities - KKO, page-18
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