Courtesy of Megaoil iii - http://www.iii.co.uk/investment/detail?code=cotn:RRL.L&display=discussion&it=le
Its been an interesting few days and undoubtedly a little frustration and possible confusion as well.
Guess more was expected from trading on Tuesday on the ASX
Contrary to past history Range has not been subject to the infamous past "Pump and Dumps" with this Texas announcement. To me it looked again like true arbitrage taking place.
We have to understand in Jan 09, Range was on its knees from lack of funds and possibly the loss of the Puntland project. It can be said it probably would have failed except for Schmitt leaving AOI and Landau and Liban Boqor tirelessly batting for the Range/Puntland story
Landau had to re-invest in his Max Capital connections to refinace the future of Range and the Puntland story. Obviously his advise was also to aquire other projects, hence Georgia and Texas as fall back positions. In doing so he had to call on new sophisticated investors via Max Capital and past loyal shareholders to refund and effectively re-seed the project.
He effectively had reached his funding limit within a small market and with a story that smelt more like a pig than a dog( Just to add to the animals Twiss)
To further grow these projects he needs new sources of funding, hence hello AIM, OPL and Co. The Range story has to transfer to AIM hence the transfer of majority share ownership. Australia is not the price driver that you should expect just now.
This announcement does underpin the fundamentals for Range with much scope for further upside.
So where as we at?
Just my opinion, but lets how this unfolds.
The EGM was held on the 19th March
Resolution 5,
The effect of Resolution 5 will be to allow the Directors to issue Shares raising up to $10,000,000 during the period of 3 months after the General Meeting (or a longer period, if allowed by ASX), without using the Company?s 15% annual placement capacity under Listing Rule 7.1. The Company is seeking shareholder approval for this resolution given that it may wish to fast track drilling or production operations depending on results over the coming months
Key Points
$10M 3 Mmonths fast track drilling and production
Cut off date therefore is 19th June
Now lets reflect
Landau and Co had meetimgs recently in London with brokers and assumingly various investment funds, now the funds need more than a story to invest, they need fundamentals
What have we now got?.....................fundamentals!
But there is still another major one needing the elephant stamp to be coloured in, my guess is this progressing accordingly and will be concluded within the next couple of weeks, then you will see AOI get very active.
Watch for further Texas Tea news as I think rather than a massive jump in price we are seeing the whole story coming together for the result intended
The question is what price will the raising be done at? Looks like we know by when.
I have my thoughts and I think it will happen sooner rather than later
RRS Price at posting:
7.5¢ Sentiment: LT Sell Disclosure: Held
