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The last fundraise was done largely for the participation in the Stonepark drill. Apparently the NomAd (bizarrely) wouldn't let the company say so because G11 hadn't specifically announced/agreed the actual amount required. So it should be at least mostly covered already, so hopefully little or no dilution required to cover it (especially when the Mcap is down at £1.2m!)
I would be tempted to let them dilute us by not funding any further Stonepark drilling this season if funds are low - the market is completely failing to attribute any value to the Stonepark holding, so it would be madness to dilute down at these lows for participate. Our current share of Stonepark is worth many multiples of the current mkt cap, so just let them dilute us.
DVH I think it's important to differentiate between the actuality of imminent drilling by G11 at Stonepark and JT's use of the Annual Report to make politically-charged points, which as we know he does like to do.
Hmmm, not a report that is going to have investors rushing to put their hard earned here. 'Exploration Challenges' in Ireland spells trouble for any progress at Stonepark!
DVH, I think you're being a bit hard on JT - they're keeping the company together on a wing and a prayer, taking almost nothing out, and just looking to deliver value from their quarter share of Stonepark. Once things come together at G11 and Glencore buy out the rest of the G11, their offer for Arkle will follow shortly thereafter, but it could still be years away (and with Glencore's strategic stake in G11, it's unlikely anyone else is going to make a play for G11, and therefore we are pretty much beholden to them.) But, of course, Arkle has the metal rights over their minority share in Stonepark, which is rather unusual, and means that they will eventually want to buy out our share. The only thing which I can see might peak Glencore's interest is if some other company recognizes how undervalued Arkle is and comes along with an offer, with a lot of cash and knowing that they may have to sit on their investment for some years before they can blackmail Glencore into buying it for a big premium. But I don't think that's very likely. Just a matter of having to wait. And wait some more!
And, of course, the complete absence of leadership/achievement from Teeling!
I suppose peeps are wary of the (potential) difficulties and timescales involved in monitising the assets?
First Equity research note out this morning.
Not much new but highlights the extraordinary value discrepancy between the mcap of £1.4m (scarcely a bare listing value) and the asset base.
Saying a more realistic value based on peers should be £5m-£10m and a 1.35p target.
Utter useless clown.
Wow, great news, just what we're waiting for...
We should hope so Troajan - it represents a market cap of under £1.5m. Which values the whole of Stonepark at circa £6.5m (and that’s valuing all ARK’s other stuff ie llithium etc at nil). Hardly any overhead and no debt. Has to be crackers?
0.27 seems to be the bottom on low vols
DVH - agreed. 23% share of Stonepark seemingly safeguarded for now at least, with the cost share covered for the extensive drill this Summer with who-knows-what excitement that might bring, plus the lithium.
Mcap still only £1.5m-ish with no debt and tiny overhead.
Thanks perroverde, that information is very helpful (lithium exploration too!)
.25 is hardly a discount to .27.5 mid. Stonepark participation costs peanuts to maintain %
Great to see 2x directors taking part. Warrants at premium as they should be at.35
Happy to accumulate
DVH - answer received: Yes the funds are indeed earmarked for ARK to stand its corner at Stonepark in the imminent drilling programme. Because the exact details of the programme have not been announced yet by G11, ARK is not able to make specific RNS reference to it. However the total cost has previously been estimated to be around/just under EUR1m, so ARK's share will be in the order of £200k at today's exchange rate.
DVH - the placing was 'sold' to me on the basis that the funds WOULD specifically be used for Arkle to stand its corner in the imminent Stonepark Drill. So not sure why it isn't mentioned in the RNS. I will ask!
No mention of funds being used for further exploration at Stonepark so this will be another fund raise down the line. And so it goes on. Nothing will change here whilst Teeling is at the helm!
A discounted Placing!
Yahoo reports 52 million shares traded on 17th of April; total shares outstanding 462 million (approx). therefore more than 10 percent sold therefore the price is low enough for somebody to dilute us. And get shares cheap.
Or was the 52 million a spoof.
Where is the money coming from to fund the ark share of costs?
RNS: John Teeling, Chairman, commented: "We are very pleased that Group Eleven are going to undertake this programme. The economics for zinc miners are looking better due to lower treatment prices for zinc concentrate. We would expect to participate in this programme."
Yes, Auc1, they theoretically can. But who would be interested in buying, when they know they will inevitably end up a minority partner at the mercy of Glencore? That is why, presumably, South32 wanted to buy all of Stonepark or nothing.
Nothing for it but to wait for G11 to prove up Stonepark and PG West in their own sweet time, and then we may see an offer from Glencore once they've agreed a buyout with G11.
*/which will be a headline maker
“much more likely is that G11 said no, since they have to listen to what Glencore want on the matter, since they are such a large G11 shareholder.)”
Bottom line is ark can sell their % irrespective of G11. Ie ARK own 26% ( or whatever it is) so ARK can sell it. Or ARK can probably reduce % ( in G11 favour ) to fund further drilling although ark have always chosen to retain not relinquish
Anyway G11 n ARK r keen to find the mirror image of the Pallas green discovery which will be
No, Auc, I'm not entirely sure you are remembering the situation correctly, tbh. My recollection is that Arkle were approached about selling their share of Stonepark as part of a deal to sell ALL of Stonepark; it did not go ahead, that's for sure, but I don't believe that Arkle has EVER declined a reasonable offer for their share of Stonepark (much more likely is that G11 said no, since they have to listen to what Glencore want on the matter, since they are such a large G11 shareholder.)