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Ann: Execution of non-binding Term Sheets for Project funding, page-20

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sacredwhisper

337 Posts.

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03/12/19

20:04

Post #: 41776947
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Originally posted by christem: ↑

Hi all,

Firstly, this was never going to be a binding term sheet! So to expect this is pretty ignorant.

They need to be approved by boards and shareholders to become binding. Once documentation finalised and boards and shareholders approved (at EGM) then it becomes binding and subject to CPs which will be:

Eskom offtake
Port allocation
Rail link funding
Working Capital funding
Approval at EGM

Then we achieve FC and drawdown in March 2020.

The ann was significant news and market response is quite surprising.

My interpretation of the market response was either:

Bad day overall (unlikely)
Market was expecting binding terms (possible)
Market doesn't like the EQUITY component (most likely). This element has never been mentioned before and comes as a complete surprise, however when you consider the market for lending thermal coal projects and you are able to maintain control (51%), the deal is somewhat palatable. It also secures us another $23MM interest free.

I would rather have 51% of a world class project, than 74% of nothing!

It will be interesting to see what the independent report states about the deal, particularly this element.

Overall, we are making progress, so I stick with my prediction that we will see increase in SP back into the teens once the market has had time to digest and understand the information released today.

Thats my 2c!

What do others think of the actual deal itself?

Cheers

Expand

The market did the talking today. No-one trusts this Mgmt, or their ridiculously worded timelines & delays...

I will bet that March 2020 will be JUne 2020 will be lucky if anything is done by end Sept Q 2020...........

Paul Jury probably had the similar deal that was announced today back in 2014..................Mgmt ousted him & have done the most pitiful failure of a job I have witnessed, some are right, this Coy is a complete waste of time and should be delisted and only listed in SA.
RES Price at posting: 8.5¢ Sentiment: Buy Disclosure: Held
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