Hey
@kvsae, I have no idea mate - I’m speculating all kinds of things at the moment, Sophisticated investors, a cornerstone investor/JV Partner, CR at 0.0015, better if it were at 0.002 or best case 0.0025 etc...
If I were to guess, I’d suggest the CR is done already and the funds will be used for the (quote) (“Purpose”) - the acquisition. I believe we’ll find out the answers to everything(who, how much/what price, and when the CR shares will hit, and the news on the acquisition itself) ... on Friday - purely my opinion, given we’re overdue past the last extension date. We may get a voluntary suspension, but I believe they wouldn’t have requested a TH today if things weren’t ready for release to market on Friday. But who knows.
Hopefully they raised more than the $1.00 sell price Â
I’m at a lappy now, so can provide a bit more about the conversation I had with Andrew (note - on Monday, before today's news).
The conversation didn’t go in this order – this is just how I structured my notes.
First up, it sounds all good. The deal is with the government approval as the final hurdle - which we know from the last extension announcement. He feels it is very close - his words were “He just needs to get it over the line”. I asked about timelines, but obviously he can’t giveaway any information here. All he would say is “Watch this space”.
He said funding is really tight at the moment, but they are just doing whatever they need to do, once they get the deal. From what it sounded like, it won’t take much to get things into production and start earning cash,which will relieve the immediate funding pressure.
In regards to the FLAX (Oil) the vertical wells were not working well, horizontal wells are expensive, requires a lot of drilling - but he indicated there may be other methods they could try, He used the words “Innovative” and “Out of the Box” - I didn’t ask to elaborate - it would have been wasted on me anyway.
He also said it is the gas that really excites him. By the conversation we had I believe theres hould be more emphasis on this than what most of us are thinking! Again, his words “low hanging fruit”.
I asked - Why does Acer/Beach are selling this for $1.00 and not pursuing it themselves. His response is that Beach is a $4.5 Billion market Cap company (ASX:BPT). Now they bought out Acer, and Acer bought out Drill Search. Drill Search did the initial drilling and spent the $50mil on the project. When Acer came in, they basically made everyone redundant, losing the IP, and same happened with Beach. They have this asset, but no desire to pursue it. Besides, it is very tiny peripheral asset on their balance sheet, so they just rather get rid of it / easier for them to just write it off.Â
He also said he knows people at Beach, andit’s often a case of who you know. <<< Emphasis here!He asked me why I invested in ROG. I said I started watching and researching ROG in October/November and did my due diligence. I explained I looked at his track record, spending a long time at Cue Resources, and Iguess someone who was in a good place in their career (he was CFO at Cue –ASX:CUE - $50m MC) why would he quit a good job to pursue something on his own if he wasn’t confident about it. He said I interpreted that exactly right, he’s totally confident about the project and has a lot of excitement about its future.
I have his mobile number now, and he said I could contact him direct with any further questions. This was a sign of confidence for me - some CEOs would not do this, especially if they didn’t want to be in touch with you after a bad deal LOL! Given he was willing (actually it felt like he wanted me to call again), and forthcoming with keeping in touch with shareholders, I was pretty please about this.
He seemed like a genuine guy, very professional, there was an element of confidence in his voice.
There was nothing sensitive /not known to market already in what we discussed. I was more keen to hear his voice and make my own judgement/interpretation of the situation based on how he came across.
Hope this is useful folks
Disclaimer - all of the above is my interpretation and understanding - Not to be taken for, or used as financial advice. Of course Do Your Own Research etc.
Cheers
MSN
(20min delay)