Bradda Head Lithium exceeds targets, secures US$3 million royalty and moves closer to production. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Sausage,
If they have lined up prospective buyers they could be at an early stage of discussion (I did not say a deal was imminent/ going to happen tomorrow).
The non-core assets will need to be moved out of MGA and a deal will likely take months to negotiate once a buyer is found, but when it drops it will be game changing.
Mentalmax.....Absolutely right....why couldn't the previous BODs appoint a broker to monetise this...they all 'had a look' (the mind boggles).
At least the new BOD are getting the ducks in a line.
ECR have been working on this for many months with a Tax Advisor. They have now appointed Argonaut, a corporate entity, to conclude the transaction. You can't get a seat in front of the likes of BHP, you need a established corporate firm to do that on your behalf.
The nomad has allowed them to state the Tax Losses are worth $18-$22m to ECR. Thats significant as they would have had to provide extensive proof of that
We are on teh cusp of something extremely significant and at £4m Mcap this has the potential to be a real summer winner
The process .. have to start somewhere.
"Happening now"
They've hired a tax advisor and are at an early stage, what exactly is happening now?
............who cares, it's happening now and it's going to be big😏.........."Why has this not happened until now? "
Morning TalkingSense
On the basis ECR state in the official RNS that "this is still a very early stage" I'm going to ignore where you stated "no-one knows......., if the broker has already lined up prospective buyers" Just a hunch but "very early stage" probably means they don't have a buyer lined up. Of course that is just my opinion and it's perfectly OK if you feel "very early stage" is in some way code for they have a prospective buyer lined up.
You say probably where the £6k went, because ECR continue to resist naming where the £6k of shares went. What is the name of the person/ company? Why won't they name them? If the shares went to the tax advisor just say the shares when to tax advisor.
Just a guess, but my view is the tax advisor will want more than £6k in shares, so I'm not buying your view the shares may have gone to tax advisor.
To avoid continued speculation, wouldn't it be best for ECR to simply name where the shares went?
‘ if the broker has already lined up prospective buyers or if the process is starting now.’
This. Could literally be the difference between waiting months or years. philippians Has put me off getting too excited at this stage. Interesting but jam tomorrow until executed. Why has this not happened until now? Legacy BOD need a head wobble.
Morning Sausage, Probably where the £6k advisor fee was spent that you were fretting on last week.
Good news that we have taken the services of a well respected advisor with many high value connections and not some corner shop broker.
No-one is suggesting that we are going to do a deal today, but if a deal is done is will be a massive change in ECRs finances.
Of course they put the 'no guarantee' disclaimer in as they do in all RNSs.
I not sure where investors will be 'sucked in'.......they have a reputable advisor who has a plan of action to utilise the a$75m tax loss credits which the company has....no duplicity at all here.
If a deal is done it will be announced without warning and no-one knows a prospective timeline on a deal, if the broker has already lined up prospective buyers or if the process is starting now.
……….finally, that took longer than expected, next stage utilisation…….BoooooOOOM
In my opinion, it's just another example of the drip drip drip of jam tomorrow that the ECR board wants everyone to get sucked into, in a vain attempt to whip up interest.
As has been said, all that has happened is ECR have appointed a company, that I imagine don't come cheap, to start a complex process.
The facts remain, ECR still has no revenue stream and continues to send buckets of rock to the lab for testing and retesting.
Until ECR get an independent measured and inferred figure any rise isn't going to hold in my opinion.
Get real. Nothing has changed other than we've appointed someone to get after the tax loses. Nothing is guaranteed.
" this is still a very early stage and specialised process. There can be no guarantee that any offer will be received by ECR. "
Very early stages of a specialist process, looking for a same business as ecr that has a few million spare and wants to take a gamble on buying tax losses.
Whilst it good to see yet another rns from ECR, let's keep our feet on the ground
"Australian rules on transferring tax losses changed in 2015, the main change being that the "similar" business test replaced the "same" business test. As over 80 per cent. of MGA's losses predate 2015, any buyer will need to comply with the tighter historic rules"
They are going to have to find a company that passes the "same" business test.
It'll be interesting to see how they divide the Victoria assets and which they decide are 'non-core'
My guess would be that Creswick and Tambo are moved to a new subsidiary and that all or some of the Baillieston licenses remain under the MGA banner.
We know that some companies have shown previous interest in looking over the Baillieston project so that could be the icing on the tax loss cake for a prospective purchaser.
I expect a little rise today (and Techguru to hopefully slow down on the strong coffee ...lol), but there will be a a 'big bang' rise if/when a deal is done as it will be a seismic shift in the companies finances (and there will likely be no warning).
Another positive move forward.
This is a serious advisor. Big player. Impressive for ECR to have them representing
"Argonaut is an Australian based investment banking and corporate advisory firm focused on the natural resources sector with offices in Perth and Sydney. It typically targets corporate clients with market capitalisations between A$30 million and A$5 billion and has advised on, arranged and participated in excess of A$10 billion of corporate finance transactions over the past decade. With Argonaut's market presence in Australia, ECR considers that this appointment offers a conduit to senior mining executives, mining companies, institutions and other interested parties."
Tambo find and asset sales are available as side dishes... but that is not the whole menu... naturally
If the tax losses could be converted into a benefit equivalent or near to the current MCap then that would be a boost would it not?
I think you can all answer this question...ha ha
Add some small scale production and nice new numbers from Lolworth and bake in a low oven for 3 months... tasty
This is going to explode higher
This is extremely exciting as previously they were just exploring. Looks like the Tax Losses are set to be sold and given the money involved i'd expect it to have a material impact on the current value at only £4m market Capitalisation. Maybe new highs above the previous 0.45p?
Clutching at straws for maybe £4m less adviser's expenses = £2m net......but every little helps. It would be nice to get sooome return to help mitigate my previous MCR/ECR losses!
GLA
Certainly is ……Sellers May Wished They’d Held On ….
"ECR's tax losses could have a theoretical value to a prospective buyer in the range of approximately A$18 - 22 MILLION." - Half of this would be transformational to ECR's ~£4m mcap.
All feels a bit wishy washy
Odds are slim to none anything comes from this, just focus on gold
Appointment of adviser to realise value from tax losses
ECR Minerals plc (LON:ECR), the exploration and development company focused on gold in Australia, is pleased to announce that it has engaged Argonaut PCF Ltd ("Argonaut") to assist it in realising value from the A$75 million of tax losses through the potential sale of certain of the company's Victorian assets which carry those losses.
Argonaut is an Australian based investment banking and corporate advisory firm focused on the natural resources sector with offices in Perth and Sydney. It typically targets corporate clients with market capitalisations between A$30 million and A$5 billion and has advised on, arranged and participated in excess of A$10 billion of corporate finance transactions over the past decade. With Argonaut's market presence in Australia, ECR considers that this appointment offers a conduit to senior mining executives, mining companies, institutions and other interested parties.
By way of an indicative guide to investors, current tax rates for companies in Australia vary between 25 per cent. and 30 per cent, depending on circumstances, meaning that ECR's tax losses could have a theoretical value to a prospective buyer in the range of approximately A$18 - 22 million. In practice, any valuation will be based on several different attributes of any buyer including its existing profits, type of business, ongoing profit expectations and its own assessment of how quickly the tax losses could be used. Taking these factors into account, the Directors are advised it is unlikely that any buyer would pay more than half of this theoretical value and even then, this is still a very early stage and specialised process. There can be no guarantee that any offer will be received by ECR.
To be able to enter at this price after the progress made and road-map signalled by Nick and Mike.... well why the heck wouldn't you??
Looking forward to a 100% day. That is entirely possible here at this deflated level...