Afnat Resources Share Discussion Threads

[giantpeach2] 25/5/2010 18:34

More cash to add to the coffers!!!!

[marben100] 21/5/2010 17:14

Thanks for the update, rpm

With the market falling out of bed since the IPO was proposed, not too surprising that FD may not have been able to get it away. However, I kept CDC in my calcs @ cost anyway, so no matter, short-term. Maybe FD can get it away later in the year?

I still make AfNat's NTAV 2.5p/share (including 1.5p/share of cash), but at their current share price & exchange rates, the Axmin shares will be worth 2.8p/share.

I am happy to continue holding a few and see how events unfold...

Cheers,

Mark

[rastapastamasta] 21/5/2010 14:23

So the listing of CDC on AIM (due 7/5/10) has been deferred. Noone at Fox Davies Capital who can discuss this at present. Presumably there were not enough investors in the IPO? If so, presumably this means that AFNR's assets are worth less than when Axmin first proposed the TO?
It is reassuring to note from Marben's post that AFNR can provide political influence in addition to funds.
rpm

[marben100] 20/5/2010 23:59

PS... if Passendro can be moved forward, it could be worth a heck of a lot more than AfNat's current investments.

[rastapastamasta] 20/5/2010 15:04

Not sure about that encarter. Most of the AFNR exploration licenses look uninspiring. The shares in KAH (from URU divi), and in CDC look like they will be used to fund AXM's prize asset - the gold license in CAR.
I have not been able to find any details fo the CDC IPO/ admission to AIM. Does anyone know if this has been completed?
TIA
rpm

[encarter] 20/5/2010 12:09

The more i look at this deal the less i like it. It's AFNR that have all the assets and they're handing them over to AXM.

[rastapastamasta] 18/5/2010 07:19

The bridging loan announcement makes the TO look more certain. Yet it coincides with falls in both AFNR and AXM share prices. Any thoughts as to why?
rpm

[cliley454] 17/5/2010 08:26

A little quiet now, just a sit and wait for our rewards now.
While you wait have a look at MPS. I will be posting some research on the bb in the next few days.

[giantpeach2] 05/5/2010 12:13

thanks for that marben.

[marben100] 04/5/2010 18:16

Oh, and here's another "interesting" (but unsurprising) detail:

p69 s5.10: "Under an engagement letter dated 18 March 2010 AfNat engaged Chiliogon Partners LLP ("Chiliogon") to act as AfNat's joint financial adviser in relation to the Proposal. Under the agreement AfNat has agreed to pay Chiliogon a success fee of US$200,000 immediately prior to implementation of the Scheme.

David de Jongh Weill and Ozge Erdem, directors of AfNat, are also Partners at Chiliogon Partners LLP. George Roach and Michael Humphries approved the terms of the Chiliogon engagement letter, and the scope of services to be provided by Chiliogon, with Mr.Weill and Ms. Erdem abstaining from the resolution to approve the terms. Although Chiliogon Partners LLP is classed as a "related party", the terms of the engagement letter did not constitute a related party transaction under the AIM Rules."

[marben100] 04/5/2010 18:09

...and just in case anyone is unclear:

(p43, s6.8): "The principal business of the Enlarged Group will be the exploration, development and operation of the Passendro Gold Project in CAR and the management of the portfolio of Investment Securities."

[marben100] 04/5/2010 17:56

Some points of detail worth noting for AfNat shareholders with holdings in CREST:

(p49, s14.4): "Where AfNat Shareholders hold Depositary Interests (i.e. in CREST), any New AXMIN Shares to which an AfNat Shareholder is entitled will be issued to such AfNat Shareholder in certificated form. New AXMIN Share certificates will be despatched in certificated form (i.e. not in CREST) as soon as possible after the Effective Date, and in any event no later than 14 days thereafter, to the address appearing in the register of members or Depositary Interest holders of AfNat as at the Effective Date or, in the case of joint holders, to the holder whose name stands first in such register in respect of the joint holding concerned or in accordance with any special instructions regarding communications. All documents sent through the post will be sent at the risk of the person(s) entitled thereto."

Per p7, the last day of dealings on AIM will be 10th June and AXMIN certificates will be dispatched by 25th June at the latest. So, it may not be possible for AfNat shareholders that hold for the conversion to trade for a period of two weeks or more after 10th June. Nominee holdings would normally be held in CREST too, AFAIK.

Certificated holdings may be a bit of a pain for UK brokers to deal in Canada... it could actually be considerably longer than 2 weeks before it is possible to deal again. I shall speak to my broker tomorrow.


[edit]Concerning taxation (p84): "UK taxation of chargeable gains

(a) In the event that the Scheme becomes effective in accordance with its terms, to the extent that AXMIN Shares are issued as consideration to AfNat Shareholders, there will be no disposal for the purpose of United Kingdom taxation on chargeable gains and the AfNat Shares and the New AXMIN Shares should be treated as the same asset for taxation purposes."

Mark

[marben100] 04/5/2010 17:20

So, got some key numbers from the scheme of arrangement document, released today ( ):

AfNat shareholders will receive 0.4803 AXMIN shares per AfNat share

AfNat owns 7,857,142 ordinary shares of CDC (expected to float on 7th May). These were acquired us US$0.35 each. CDC is hoping to do a pre-IPO placing at US$0.50 per CDC share. Would appreciate it if anyone has any news on the progress of this and CDC's float.

Cheers,

Mark

[chasbos] 26/4/2010 13:23

RNS Number : 7618K
AfNat Resources Limited
26 April 2010

For immediate release Board Restructuring


AfNat announces that David de Jongh Weill, current Executive Chairman, is
standing down from day-to-day involvement with the Company due to continuing
demands on his time. He remains on the Board of Directors and has assumed the
role of Non-Executive Chairman with immediate effect.

The Company also announces that George Roach, currently Executive Director, has
been appointed as Chief Executive Officer of the Company with immediate effect.

[bethany3] 24/4/2010 16:24

marben......thanks!

[marben100] 23/4/2010 21:12

From the RNS:

"In consideration for the acquisition by AXMIN of the issued and outstanding securities of AfNat under the Transaction, AXMIN would issue an aggregate of approximately 206,328,666 common shares of AXMIN to former holders of ordinary shares of AfNat and an aggregate of approximately 14,961,941 share purchase warrants to acquire common shares of AXMIN and to former holders of convertible securities of AfNat."

There are currently 421.5m AfNat shares in issue, so AfNat shareholders can expect something like 49 Axmin shares for every 100 AfNat shares held. Selftrade may just have a default figure because the final numbers have not yet been defined. A shareholder circular with all the details is awaited.


encarter,

AFAIK CDC have not yet issued their prospectus. They and Fox-Davis Capital have, however, issued a confidential presentation to pre-IPO investors this month, indicating an intention to float early next month.

Cheers,

Mark

[bethany3] 23/4/2010 15:26

Anyone with Selftrade? According to them the merger share ratio is 01:01, how is that possible? Not the 1st time they got it wrong though.

[encarter] 23/4/2010 12:40

Anyone got a link to the CDC prospectus?

[encarter] 22/4/2010 23:08

Same holder? Probably. Why PLUS? That's were the best price was available at the time.

[bethany3] 22/4/2010 18:08

Total possible sale of 419.5k above bid share price on LSE against one 500k buy on PLUS.
Recent big buys on PLUS:-
1)500k (22/04)
2)700k (20/04)
3)250k (16/04)
4)250k (15/04)
5)500k (14/04)

Same holder? Why PLUS and not LSE?

[marben100] 21/4/2010 13:31

Note the URU special dividend announced today: (which NWT have agreed to support). That will mean that AfNat acquires 1.2m Kalahari shares, though the value of its investment in URU will obviously reduce ex-SD.

I also note, in today's Kalahari holding notice from Itochu ( ), that Itochu has an option to purchase 1.2m Kalahari shares @185p each. Could those, by any chance, be AfNat's? ;0) [though the option expiry date is not consistent with the date of URU's AGM, 7th May]

Cheers,

Mark

[encarter] 21/4/2010 10:34

CDC listing 7th May so we will get an extra boost from that too.

[bethany3] 21/4/2010 09:09

encarter........thanks for that info - sooner or later it will be addressed I'm sure. In the middle to long term I think we'll see value in Axmin - current value is just 10% of its height ridiculous considering Axmin has more promising assets and cash after this merger with Afnr.

[encarter] 21/4/2010 08:56

The best way to look at it is this.
We will end up with 514m Axmin shares in issue, at todays bid 10.5c = 6.8p.
514 x 6.8p = £35m and Afnat holders get 40% of that which is £14m. 421m shares into £14m = about 3.3p or if i'm correct about the statement on 14th April then 411m share into £14m = 3.4p. So as things stand these are still way too cheap. As i have said imho the mms have got their maths wrong and are calculating the share price at 40% of the Axmin share price

Regardless, over the medium term Axmins shareprice should perform well as they will have plenty of cash to develop their interests. However share prices don't usually go up in a straight line so the real profit is to be made over the next few months, all imho.