Baobab Resources Share Discussion Threads

[katylied] 01/3/2015 15:54

Has Tuckman been given his P45? Services no longer required?

[emtrad] 01/3/2015 12:44

Thanks Sweet K.

Seems we have a lot of stories to share. I only had a few K in Namawka Diamonds but if my memory serves me right the Company was about to take off and had some extremely valuable large diamond pieces which I believe were about to be auctioned (making up a significant % of the market cap alone). As well as this, the Company was proving up to be cash positive on its main operations. The large investors colluded and forced the company private offering a small premium to the then share price - this of course robbed the majority and also denied them the chance to realise what the investment could be worth.

It seems to me on AIM, you lose in any outcome. When a project is likely to make money, the big boys will collude to ensure it doesn't get shared with the small guys. Ironically, I remember the times we thought our board were different!

[sweet karolina] 01/3/2015 12:09

EMTRAD,

A compulsory purchase would be at the same price as any offer - it has to be.

A bit more on the ENK story - there are some parallels here. ENK were about a month or so from releasing a BFS on a heap leach Nickel project in the Philippines, which would have given the project an NPV of about £1 per share (Shares were about 13p and I think the offer was 19p)). However a shareholder with about 30% and a track record of doing take outs got together with local Philippines shareholders to take the company out. Just this link up gave them just under 50%. The board did not like it, but there was nothing they could do about it as as soon as the 50% mark is crossed that party have full control, they can vote off any director who tried stand in there way. Also what was being proposed was that they were going to bin the heap leach project and stick to DSO, whereas what the board wanted to do was stop the DSO, which was only very marginally profitable, and wasting the resource and focus on getting the heap leach up and running. The local shareholders wanted to keep going with DSO because it kept locals employed.

Continuing with DSO would have been madness and as the Nickel price tanked shortly afterwards, had they done this the private company would have gone under. The board got shafted in this particular deal as well as they were forced to watch years of hard work get stolen from them and then squandered.

The difference at BAO would appear to be that the BOD are in on the deal for now at least, but the capital raise that is needed could well dilute them to a point where they can be easily kicked out.

Unfortunately this sort of thing happens all too often with AIM junior miners. Beware of cornerstone investors who come along and take approx 30% stakes and have a track record of later shafting ordinary shareholders. There is nothing ordinary shareholders can do other than try to sell for the best price possible, which was over a year ago for BAO.

[topicel] 01/3/2015 11:53

NavMike, did you ever meet BJ or JD? Or talk to them etc?

I'm not really saying 'I told you so' as my loss is five figures having just worked it out, but it was kinda plain when the bridging loan was made that we had some problems.

Many know I lost a packet on Meldex and five years on bulletin board chat continues as to how to get those responsible brought to account. But was there any outright lying and criminality here by comparison? What bugs me is the DFS a was probably never coming, that the IFC haven't been much of a 'guide' and that our BoD didn't try and sell the 'iron mountain' to Redbird when they needed money.

So they were probably colluding for months...with this end game in sight.

Topicel

[nav_mike] 01/3/2015 11:26

Would normally say no, as its been RNSd, but seeing what this shower of shysters are capable of makes me think anything is possible.

I certainly think if 5.6 or 5.5 becomes available in the market Im off....I need to get this disaster wiped from my mind.

Jeremy Dowler is also on Linkedin if anyone wants to send him messages of heartfelt thanks....

[kbrook] 01/3/2015 11:17

Cheers Mike. Any risk in waiting for the 6p ?

[nav_mike] 01/3/2015 10:43

To get the 6p you will have to wait for the offer document, which they said would be around 28 days....nice and quick not.

Once thats out your broker will presumably send you a corporate action notice which you can accept or decline.

[kbrook] 01/3/2015 10:21

If I don't sell now and I don't see why I should let Redbird have my shares even cheaper, how do I get the 6p on offer ?

[zinkwazi13] 01/3/2015 09:33

The "twins" at Redbird are going to clean up here - this will be repackaged and will reappear in another vehicle - watch this space- thanks a bundle to the BOD - I wonder how the IFC feels about this?

[wooster4] 01/3/2015 08:56

Kevin - you won't get the opportunity to hold shares in delisted company. Redbird will have increased their holding and you will have no choice but to accept 6p.

[stan40] 01/3/2015 08:18

too right yet another AIM company with a massive resource shafted for peanuts ! Wish I was friends with people behind this as they stand to make a fortune !

[comcols] 01/3/2015 00:04

Another of my AIM nightmares.....

[backinblack80] 28/2/2015 23:26

It would appear that any shareholders able to continue holding in the delisted company faces dilution. The pending 12m equity raising (that figure came out of nowhere) will see to that unless shareholders are able to purchase new shares in order to maintain their holding?

[ihavenoclue] 28/2/2015 22:17

Redbird need 75% to force the remaining 25% to sell at their terms

[pete_bain] 28/2/2015 18:46

Yup. Greed got the better of me from being up £110k to £110k down. That's providing I were to take the 6p on offer which I am reasonably certain will materialise. Still considering the Kev option with 50% of my holding - it's gonna be a long haul back to triple my return to break even but in truth it's been a good lesson in life and reaffirms the realization that money isn't my primary motivator.

[emtrad] 28/2/2015 18:03

Thanks 84 yards, you are right, the writing was on the wall. Ever more clutching at straws as BJ invented a new strategy every other month and we slowly realised that we're paying a board hundreds of k in salaries to be on a decade long feasibility study.

Like Kbrook alluded to, I actually feel positive this weekend, I feel relieved I can write this loss off and move on. Difficult coming home from a long day at work to see another 5% off your investment all the time.