Not sure I agree with that Perpetual8.Here’s what we know. Conti...

Not sure I agree with that Perpetual8.

Here’s what we know. Conti has promised the following:

a) the sale of van-mag for the best part of two years now for $10m

b) I’d say if you scan HC posts from about a year ago you’ll find posters espousing the virtues of Masawu Investments and the benefits of what they would bring to the table. (ie. political contacts, Zulu royal family etc). From memory $20m, plus a $10m vendor finance arrangement. Now we’re waiting for SIOC-cdt to come to the party. However, financial settlement of the transaction will be dependent on the receipt of any applicable government approvals (sounds familiar).

c) In the company sponsored OPLC report of Jan 2011 it clearly states that a deal with ABSA was close at hand. Since 29/6/2011 in ASX announcements Conti have stated that ABSA deal was close, worth $65m in funding.

So we’re on a promise for $95m, possibly $105m in funding if you include the $10m vendor finance situation (which was also mentioned as part of the SIOC-cdt deal. See the ASX announcement 29/6/11).

Also from August 3 ASX announcement – “Further to the Company’s announcement of 29 June 2011, Continental is pleased to advise that documentation of the binding agreement with SIOC-cdt is well advanced with execution of subscription and shareholder agreements scheduled to be completed in August 2011. Financial settlement of the transaction will be completed shortly thereafter, although will be dependent on the receipt of any applicable government approvals.”

Current MC is$80m approx, with $95m funding on its way – all promised or flagged since January 2011, some of it earlier, in one way or another.

Since all of that has been flagged by the company since June 30, another 78m shares have been issued to Socius and raised US $24.3m, whilst taking shares on issue to 399m.

Here’s what’s actually happened to date:

i) Van-mag is still outstanding. I’ve seen numerous variations on what is intended to happen and when. If it ever happens it will be a bonus.
ii) Masawu and Bruce B have left the building with their shares and without contributing cash, but probably have a royalty payment organised for the life of several mines once they come into production. SIOC-cdt is coming on board at some stage.
iii) ABSA drawdown still hasn’t happened, but Socius has given $24.3m in the interim, with another 119m warrants up their sleeve for a rainy day.


Let it be clear that I’m not casting any aspersions upon SIOC-cdt, ABSA or the eventual would be purchaser of van-mag, and I’m not saying these deals won’t eventually happen (well I have my doubts on van-mag).

What I’m saying is stop talking about the deals and show us the cash.

Then and only then the SP might get a re-rating and other parts of the business plan can gain momentum … and then the company might be in a better place.