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Po's and Con"s, page-6

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457 Posts.

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21/09/14

10:01

Post #: 14005717
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Originally posted by seals ↑

Hi all.

Good to read some thoughtful posts on the GUN thread - in fact it's good to read some other posters! if nothing else, that's a gain

I think the vision and strategy behind all of this is actually very clear and reiterated again in yesterday's announcement which made a couple of critical points that are the drivers behind this move. Those drivers are:
1. We are almost out of cash.
$600k left with ongoing commitments that swallow that eg over $300k p.a just to meet rates and licensing to maintain our various tenements.
2. If this proposal does not get up the notice states we'll be going immediately to another cap raising anyway.
an alternative raising will go roughly the same as the last one ie maybe $800k and buying another 6 months. We need to break this cycle but the timing of our current projects, and I agree with scoundrel re potential, is not going to break the cycle as most current shareholders are exhausted.

so the strategy
Step 1: bring in new sophisticated cashed up shareholders
as mentioned, our existing shareholders are exhausted when it comes to capital raising and our current projects are not yet at the point where they will entice significant new interest. To do that we need a new story. Strandline brings us a new story. It's one that builds on our finance ready project at Coburn. The value Strandline brings to the table is in personnel with strong relevant skills and experience and a blue sky exploration province tha may hold a serious world class heavy mineral sand system. Peppie raises relevant questions regarding the state of the sands market but for the moment lets walk the optimistic path for the sake of the exercise. We can debate the potential of the assets in another thread.

step 2: raise sufficient capital to break our current cycle
the involvement of Hartleys has already paid off. They have a good record in this sector with helping push Sheffield forward. The $2.2 million they've raised here for us is a dramatic outcome compared with our last couple of efforts. If the SPP comes off we'll have $3.5 million and secure to push all our exploration for a year out.

step 3: progress our proj
thre was a chart on the broker presentation that gave a positive gant style chart for the year ahead. It was essentially:
i. Find a funding partner for Coburn
ii. Secure an exploration partner for Fowlers Bay
iii. Run through a successful BFS prgram with Torrens
iv. Conduct a full program of exploration, assays and evaluation in Tanzania

That's an optimistic set of goals but all are realistically more achievable by locking away this funding - weakness does not attract strength. Bringing in this capital, both fiscal and human definitely makes us a stronger company imo and the outlined goals are definitely a strong program of work and strategy for the year ahead.

looking further out, 2016/2017 could see us with production at Coburn and maybe even production at Mt Gunson, if not them not far off based on the scale of current proposals. Achieve those and we may be able to fund expansion of our programs from cash flow and bring an end to the dilution. We may be able to achieve those things without the purchase of Strandline but it would be a whole lot harder with our backs perpetually against the wall and it seems plain now still with dilution ahead.

finally directors shares - bloking and folwell are applying to buy shares not being given them.

Expand

Seals may I ask what you connection is with company .Gunson,Standline,Hartleys ?
I agree current share holders are exhausted and another raising is close.
Is the new story really going to make a difference ,we have 3 projects

Coburn were can you find another fully permitted Bfs done ready to go but is not right
Torrens is 6 months from Bfs I have read and looking it return money over time or could be sold at this point
Fowlers bay in the presentation they mention is getting negotiated on ,news soon .

So if Strandline bring some acreage in Africa, is this really what gunson needs a 5 to 10 year project which requires 10 of millions to be spent .
Is Gunson buying Strandline or is it just is it another way of doing a take over under a different name .
Any money raised a lot will go to work on African properties ,no value to gunson near term
There manage are solid .but it feels like a great deal for Strandline at the expense of Gunson long term supporters ,may be need to take gunson glasses of and have a look

GUN Price at posting: 1.9¢ Sentiment: Hold Disclosure: Held
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