Finnaust Min Share Discussion Threads

[wiseacre] 22/12/2016 13:52

500,000 shares dumped at 6.85p without disturbing the price (au contraire). Looks like there is an institution soaking up any loose stock.

[maccamcd] 22/12/2016 12:12

cheers Pat.. I've been very quiet the last month. Inside on the placing, so obviously couldn't comment.

some points about the placing:

The Institutional investors did significant due diligence on the company, the management, with Local Greenland Govt officials, the asset potential.. and getting comfortable with the risks around the investment.

If you check the recent holdings RNS.. you'll see an institution who very recently closed a very lucrative declared 'short' in Paysafe, are now invested in FAMily. it's comforting to have very smart investors on board!?

Raising £8.5m with a list of about 20 existing/new investors.. more Tier 1 Institutional meetings being lined up for January/Feb to beat the drum and soak up any lose stock is confirmation of what we all knew.. but a nice verification of the potential. we can all sleep better.

Attracting Mirabaud on the ticket who are specialists in Natural resource companies and their assets/potential. Bear in mind Mirabaud have raised $1bn for Kenmare over the years.. so any future funding needs to progress the other ASSETS we own shouldn't be a problem. They only got involved as they can see the journey, the kudos being involved in a money making opportunity for their investors, and for the comm it will generate for them as the company progresses its world class assets!
SP Angel did a fantastic job also.. put the company in front of many institutions. Some who will invest as the company derisks itself.. we are now on some good radars.

You all noticed there wasn't really a discount on this placing?? that's because the brokers/investors agreed 7p was good value and fair. Hopefully a good base to push on from with lots of news flow promised in Q1.

Reducing WA Down to 19.99% was the plan.. apparently that suits them, and no other sales are expected (unless at multiple higher prices?) no idea.. but they shouldn't be considered a 'overhang'

some bunff from the Mirabaud Buy note:
"Based on the above we calculate a post-tax NPV8 of US$116.6m as a result of the
mixture of our three different campaign mining period scenarios (see table below).
On top of the risk factor for each scenario (likelihood to happen) we apply to our
Pituffik sum-of-the-parts valuation a 50% risk adjustment in recognition of the risks
to the early stage of the project. "
Valuation (£p/share) 0.14p so this is a 50% conservative discount..

The valuation is using very conservative inputs.. if FAM do the size/grade/pricing that is the whisper numbers.. the share price valuation is more like 96p !!!!!!!!!!!!!!!! BOOM BOOM.

Happy Christmas to you all.. hopefully 2017 will be just as profitable to you as owning FAM was in 2016.

Peace to all men (including Richieboy!)

[patviera] 22/12/2016 09:13

Just wanted to say very well done to Macca for picking this share as been one of best on aimHe's the best stock picker I know and wish him the best Xmas everWell done Macca

[buoycat] 13/12/2016 10:53

Watching trades is never interesting or informative imho.

[shutittrev] 13/12/2016 08:20

Interesting trades yesterday, specifically a trade for 3,571,429. Advfn had it at 6.85. There where a number of other largish trades that went thru and I see a few this morning. Has Richie's outfit wisely concluded to close their short? Just wondering like.

[longrod] 12/12/2016 07:01

as always time will tell. Always does!

[longrod] 12/12/2016 06:49

Bye bye Richie!! We will miss your antics...

[richie666] 10/12/2016 10:37

Snowy/ramp - WRONG. Western Areas did NOT need to sell to avoid the BlueJay bid trigger. I repeat, they were supposed to be the ticket writer for the development of Pituffik. They fact they are clearly not speaks volumes.

Now I'm signing off here. Will watch from afar to see how things pan out for FAM. You all know what I expect going on Mcillree and Kuenzel's past form.

[rampair] 09/12/2016 23:22

This company has had its business plan pored over by whoever stumped up £8.5m! As I think about it Snowyflake, it was always in the gift of the related parties to act
earlier - indeed, offering shares at 6p to get the placing away a month earlier. Would have easily got them filled.

However, dilution is not their thing here at FinnAust, they have treated existing ( & their own interest) well. This placing is good news & as a shareholder since early 2015 I remain content under this management.

Own opinion,
Rampair.

[rampair] 09/12/2016 19:51

Ok, the complaint of illiquidity has been addressed by the Western Areas move, we now have other holders who took the stake.
1: addresses concentration of holdings.
2: In the event Western Areas were bought out, we, will not now be automatically bid for due to the new owners having 30% of FinnAust - very smart move on behalf of McIllree.

Deferred shares were issued - as per the signing of last Decembers Pituffik/BlueJay
Deal where FAM Acquired the stake in BlueJay.

See: (b) the allotment and issue of the Deferred Consideration Shares, namely, 40,755,885 New Ordinary Shares on a business day elected by the Company in accordance with the terms of the Bluejay Acquisition and such date shall not be later than 12 months after the date of the sale and purchase agreement.

Now, that part is complete, we have over £5m in the Bank & new shareholders who, after extensive due diligence bought over £8m of FinnAust equity - they clearly are content that this is a good deal, and fwiw so do I.

We have the Monies to move forward & it shows intent to the Greenlandic authorities
that FinnAust can raise Capital to execute their plans.

This is a good position to be in as we enter 2017, a year where we ramp up serious
studies and, 80 Years after the first discovery of the Thule Black sands, we get to start on commercialisation.
Subject to Greenlandic authorities, clearly.

The stated intent of Management is to use a revenue stream to move forward on our other, very promising prospects at Disko & Kanger, as well as the other, valuable, Finnish portfolio. Excellent potential there too.

Big volume day, a few broker reports out today, share price Angel, & Strategic Metals & Rare Earths (12p target) they have had a Buy note since 1.88p. Now that's Research.

Please DYOR,

Rampair.

[richie666] 09/12/2016 08:59

Bouycat - it was not a portfolio position, certainly not as sold to me at the start of the year. They were the anchor financier and ticket writer. Selling out a relatively nominal sum in relation to their market cape speaks volumes to me.

[buoycat] 09/12/2016 08:53

Western still 22.5% invested here. But perhaps just rebalancing their portfolio as any investor should rather than falling in love with a share There's no crystal ball.

[richie666] 09/12/2016 07:55

Plenty of failures Snowy rest assured on that.
Good rev - back in ol Blighty dear man. Suitably tanned, full of belly and relaxed. Thanks for asking Dave.

[snowyflake] 08/12/2016 20:30

I concluded that, with the way you were posting really bashing McIllree and the company, you were on the other side. It became transparent.

You are one to brag about your "successes"; are you humble enough to admit your failures?

[richie666] 08/12/2016 19:52

Sorry for not being inside Monet.

[monet] 08/12/2016 19:30

richie666 looks like you wrong, I would not be surprised if placing done below rumoured 7p.

richie6666 Dec '16 - 15:19 - 551 of 568 0 0
Ramp. U wanna discuss Fam? Refer to my note.
Meanwhile another day and no RNS. From experience those cos with good prospects get modest placings tied up quickly. Delays are rarely good news.
I would not be surprised if placing done below rumoured 7p.

[snowyflake] 08/12/2016 19:15

A friend of mine has lost packets in GPX; I thank goodness have not made the same mistake.

Make what you want of Western Areas position for I am still perfectly content with this evening's news.

[richie666] 08/12/2016 18:56

Snowy - that's one way to interpret it I suppose... My slant is why are Western Areas who clearly don't need the money selling out in part? I always thought they were a "cornerstone" investor writing the development tickets..? If it's worth trillions and trillions I'd want to keep all my shares. Silly me again no doubt.
SPangle taking warrants with a strike of just 7p - with a price target of 15p why so low and why so long life (5 years)?
Greenlands Minerals & Energy mark 2 all over it.

6.5 - 7p tomo I expect.

Shudda followed Align this year pal - would have made multiples of your capital. GPX the latest, see here from the beginning of the year -
Paid for a good glass of pinotage or two!

Goodrev/Mr B - before you say it, I will - just saying like...

Shebeen bit too oop market for me too! Merry Xmas!

[snowyflake] 08/12/2016 17:58

Yes Arivali - boom. £5 million new money; placing oversubscribed; new INSTITUTIONAL investors; minimal dilution; greater liquidity with Western Areas releasing some shares in an orderly way and remain supportive of the company.

I am more than happy with this announcement.

richie66 - there is always Rosie-Lee's shebeen where you might get a room.

[arthurdaley69] 08/12/2016 16:57

FinnAust Mining plc ('FinnAust' or the 'Company')
Placing to raise GBP8.5 million
FinnAust Mining plc, the AIM listed exploration and development company with projects in Greenland & Finland is pleased to announce that it has successfully raised GBP8.5 million from the issue of 76,428,572 new ordinary shares of 0.01 pence each in the capital of the Company ('New Placing Shares') and the placing of 45,000,000 existing ordinary shares of 0.01 pence each in the capital of the Company ('Existing Shares') at a placing price of 7 pence per share (together 'the Placing'). Both new and existing investors were procured by the Company's brokers share price Angel Corporate Finance LLP ('SP Angel') and Mirabaud Securities LLP ('Mirabaud') who were appointed as placing agents. The Placing was significantly over-subscribed. The Existing Shares were made available to investors by Western Areas Limited ('Western Areas'), the largest shareholder of FinnAust.
The gross proceeds of the issue of the New Placing Shares is GBP5.35 million. The net proceeds of the Placing attributable to the Company (being approximately GBP5.05 million after fees and expenses) will be used to accelerate the development of the Pituffik Titanium Project, the Company's flagship ilmenite project in Greenland. This will include a proof of concept bulk sample, completion of the Feasibility Study and completion of the exploitation application process in 2017. Other work programmes will include the finalisation of the Environmental Impact Assessment ('EIA'), the Social Impact Assessment ('SIA') as well as on-going detailed metallurgical and engineering work. Activity will also include the maiden resource statement for the Pituffik Titanium Project, which is expected in the first quarter of 2017.
The Pituffik Titanium Project has demonstrated the potential to be one of the highest mineral grade ilmenite projects in the world. With this in mind the Company's primary focus is on delivering a significant proof of concept bulk sample in 2017. The Pituffik Titanium Project comprises three main target areas along more than 80km of coastline historically proven to contain large and high-grade accumulations of primary ilmenite, with mining in Greenland envisaged to be achieved via a low capex dredging operation.
FinnAust's Managing Director, Roderick McIllree said, "This fundraising was well supported and I'm pleased to welcome new, strong institutional shareholders to the Company that share our vision. We are pleased with the progress made to date and remain confident of delivering our stated goals. With the maiden resource for the project due in the first quarter of 2017, we continue to be of the view that the Pituffik Titanium Project will soon be recognised as a globally significant ilmenite deposit both in terms of grade and tonnage.
"We would like to thank our major shareholder Western Areas for confirming their continued support to FinnAust whilst allowing the Company to bring on-board new institutional shareholders to deepen the share register, with limited dilution to existing shareholders at this formative stage."
Western Areas' (ASX ticker "WSA") Chief Executive Officer, Dan Lougher, commenting on the transaction said, "Western Areas is delighted with the progress Rod and his team at FinnAust have made in advancing Pituffik towards full commerciality. We have reduced our holding to 22.85% to accommodate the inclusion of some high calibre new shareholders. We also confirm our long term commitment to continue as a cornerstone investor in the Company as we look forward to the very positive future that the Pituffik asset presents."
Bluejay Consideration
Further to previous announcements by the Company, deferred consideration of 40,755,885 new ordinary shares of 0.01 pence each in the capital of the Company ('Deferred Consideration Shares') is payable to the vendors of Bluejay Mining Limited ('Bluejay') upon:
-- Bluejay being granted a mineral exploration permit over the offshore Pituffik project area; and
-- the issue of the Deferred Consideration Shares not triggering a mandatory offer pursuant to Rule 9 of the Takeover Code.
On 13 July 2016 the Company announced that it had been granted an extension of its existing licence to include all minerals within the shallow marine environment at the Pituffik project area ('Offshore Licence Grant'). As a result of the Offshore Licence Grant and the issue of the New Placing Shares, the Company was obligated to issue the Deferred Consideration Shares. Accordingly, the Deferred Consideration Shares were issued to the vendors of Bluejay on 8 December 2016.
Roderick McIllree and Gregory Kunzel, both Directors of FinnAust, are amongst the vendors of Bluejay. Further details concerning the issue of Deferred Consideration Shares to them is set out in the table below and at the end of this announcement: