NTL - New Talisman Mine - New board & Directors

[Chippie]

yes, this is excellent progress. Great to see Terra Firma investing $300K captial into NTL showing their confidence in the forward plan. nice work Jonu!

[Daytr]

One of the most positive moves in a long time, things are starting to look interesting.

It is, but I am a bit surprised they are still calling for more funds. The $300k was well signaled & its good to have the mine contractor with some skin in the game. Surely that should get them through if production is now imminent.

Why dilute further at such a low price?
Close it off & let the share price do its thing.

[silverblizzard888]

It is, but I am a bit surprised they are still calling for more funds. The $300k was well signaled & its good to have the mine contractor with some skin in the game. Surely that should get them through if production is now imminent.

Why dilute further at such a low price?
Close it off & let the share price do its thing.

They were trying to raise $3.45m last round and only got $1.718m, while hinting at a new shareholder taking $300k which we now know is Terra Firma Mining, along with a further shortfall of $155k was subscribed, which brings the total capital raised to $2.173m which is still well short of their goal. They will try to make the most of what they can do, which should probably get to the mining phase and boost shareholder morale, though its doing it on a shoe strings budget, which im sure they would like a bit more comfort room to work. Theres a good chance that theres one more capital raise from shareholders or somewhere else for working capital to come at the end of the year, though the share price could be much higher by then and it won't be a problem assuming they are getting gold out of the ground.

[Daytr]

I get that, however if they were smart they would close the capital raise, let the SP rise & then if they still need working capital in a few months time, either borrow it or go back to the market.
Debt gives a company discipline.
The SP only has to go up by 1c to avoid to convert a 10% dilution to 5%.
Equity raises is by far the most expensive form of debt.

[blackcap]

It is, but I am a bit surprised they are still calling for more funds. The $300k was well signaled & its good to have the mine contractor with some skin in the game. Surely that should get them through if production is now imminent.

Why dilute further at such a low price?
Close it off & let the share price do its thing.

It is only the ineligible rights which are being offered. About 1.3m of them. From the announcement: "There are 1,359,288 such shares still available (Ineligible person shares)" I think that works out at about $26k.

Ineligible rights are those rights that were not granted to people outside jurisdictions of NZ and Australia if I remember correctly.

So not material in any sense and not looking to raise more funds. Just an administrative task and possible a legal requirement to offer these. The dilution you mention will be minimal and almost nothing.

[Daytr]

OK fair enough i misread that.
If it's that little just close it off already.

[blackcap]

OK fair enough i misread that.
If it's that little just close it off already.

They probably can't. It will be a legal requirement. They have to get what money they can for the ineligible investors (they did not receive rights) and if the SP goes to say 2.3c then theoretically investors will be willing to pay 0.5c for these ineligible rights. This money is then taken by the company and given to the ineligible rights holders. I think the company is doing what is right and needs to be done.

[clip]

does this mean the shares have to be sold on ASX? Or on NZX?

It has been agreed that Ms Sharif is to sell the 2,700,000 shares on market over a 6-8 weekperiod. Further any profits on disposal of these shares will be donated to an NZ RegisteredCharity. An appendix 3Y recording the change of Ms Sharif’s interests will be lodged when thedisposal is complete.This announcement has been authorised by the board.

[Felonius]

does this mean the shares have to be sold on ASX? Or on NZX?

It has been agreed that Ms Sharif is to sell the 2,700,000 shares on market over a 6-8 weekperiod. Further any profits on disposal of these shares will be donated to an NZ RegisteredCharity. An appendix 3Y recording the change of Ms Sharif’s interests will be lodged when thedisposal is complete.This announcement has been authorised by the board.

No big deal.
Just a slip-up with what are numerous technical requirements.

[clip]

No big deal.
Just a slip-up with what are numerous technical requirements.

There isn't a significant amount of buy depth for her 2.7m shares to sell into though?