African Aura Share Discussion Threads

[chrisis33] 07/4/2011 13:01

news - aureus admission doc

[donska] 07/4/2011 12:54

YUM that's my take on things and you have explained very clearly. It's a wonder why there is not higher volume today I suppose there are still people (like us) who are not 100% clear on the split and not willing to commit their hard earned. Lets hope on 13th April we will all be pleasantly surprised

[liquid millionaire] 07/4/2011 12:52

Interesting YUMYUM. As a newbie [sorry] could you tell me respectively which exchanges African Aura and Aureus Mining will be trading on?

Depending on the answer of course but will they both remain ISAble?

[yumyum] 07/4/2011 12:49

Not sure richgit expresses it correctly.

AAAM as from tomorrow will be an iron ore company. It will be renamed Afferro on 13th.

Aureus, the new gold comany, will start trading on 13th as well.

The last day of trading in African Aura with the right to receive a share in Aureus Mining will be 7 April 2011, i.e. today.


- yum

[smoking gun] 07/4/2011 12:47

My holdings quoted was purely for shares, I did not include any SB's I hold.

I use SB's to give me little more exposure with money I can afford to lose.

[yumyum] 07/4/2011 12:35

allstar/anresu,

The last day of trading in African Aura with the right to receive a share in Aureus Mining will be 7 April 2011.

The Record date for purposes of determining African Aura Shareholders entitled to Aureus Mining Shares is 13 April 2011 at 12.01 a.m. (Toronto time) / 5.01 a.m. GMT.

The Company needs a record date, for example to send new share certificates to
shareholders. To be on that AAAM record you either need to have them already or to agree to buy them on a recognised exchange today.

that is my understanding.

- yum

[richgit] 07/4/2011 12:31

Just to simplify things for those losing their brain cells.


Today- We holders own just AAAM at £3.10 and corresponding Market Cap Value.


Tomorrow We will own AAAM representing the Gold & Diamonds at that value the Market puts on it + The iron ore at that value.

So tomorrow AAAM wont be £3 a share,yet you add AAAM + the iron Ore and thats
what you own.


Those that dont own any stock today can buy AAAM tomorrow if they consider
its value too low for all the Gold and Diamonds,and or buy the Iron Ore if
they consider that too low in value.


It really is simple.


On 13th AAAM- that Tomorrow represents - just the Gold & Diamonds -will simply change its name and ticker code on 13th- that is all.

[smoking gun] 07/4/2011 12:13

I hold shares but also have 2 SB's so have spoken to IG

They have told me that 1 of 2 things will happen.

Firstly AAAM may delist tomorrow and therefore will not be tradeable until the 13th under the new co. I guess we would have already known this if this was to happen?

Secondly, (for anyone concerned about their SB tomorrow) they get a price on AAAM ~15 minutes before the open and if it is considerably lower they will adjust stop losses accordingly. For example, if the 2 co's were equally valued at 50% each and AAAM dropped by 50% tomorrow to reflect the gold being removed then your stop losses will adjust accordingly.

I have been told there is nothing to worry about!

[richgit] 07/4/2011 12:10

allstar.

Wake up !!

Nobody will be buying AAAM tomorrow at £3.

If you buy today you get both-whereas tomorrow you will be able to buy
both separately as AAAM will be at the value put on it after the split and then you add the value of the Iron Ore.

Buy today if you believe it is at its cheapest to get both- or buy
both- or either -after today-its merely down to whether you think both today
is cheaper than separately tomorrow.


Logically it should be cheaper to get both now-yet with some of the numbnuts
in this game-who knows

[anresu] 07/4/2011 12:06

But, if I understand him correctly, misses his point (and mine).

[yumyum] 07/4/2011 12:03

I have had a kindof insider tip regarding this share. It comes from someone quite high up in management and is rather stronger than a wink and a nod....

"I am delighted that the proposed split of the Company's assets has been approved by shareholders today. The management believes a real opportunity exists for investors to buy-in to the split concept and the upside that they believe will be created by holders receiving two new shares in the resulting pure iron ore and gold entities, Afferro and Aureus, respectively. The last day of trading in African Aura with the right to receive a share in Aureus Mining will be 7 April 2011."

Clears up the issue regarding today being the last day to buy AAAM and be intitled to new gold shares, allstar.

- yum

[allstar_07] 07/4/2011 11:54

Conflicting views here:

I'm not sure whether you have to be on the list on the record date (13th) or not to get the Aur shares. Obviously if you don't there will be heavy selling tomorrow, if you do then there should be minimal buying/selling. Not sure I'm going to take the risk.


Record date for purposes of 13 April 2011 at 12.01 a.m.
determining African Aura Shareholders (Toronto time) / 5.01 a.m.
entitled to Aureus Mining Shares GMT
------------------------------
Effective date of the Arrangement 13 April 2011
------------------------------
Admission and commencement 13 April 2011 at 8.00 a.m.
of dealings in the Shares of GMT
Aureus Mining on AIM and CREST
accounts credited with entitlements
to Depository Interests and
commencement of trading of
the Shares of the Company under
the new name Afferro Mining
Inc. on AIM and the TSX-V

[richgit] 07/4/2011 11:48

If you thought both halves would suffer a sell down due to ignorance or profit
taking-then there is no relevance as you could buy both separately,in which
case one could argue there is no rush to buy today.

Hopefully that wont happen,though if it does then what a bargain for those with
any money to spare.

One half will eventually totally outperform the other,and that is the beauty
that we will have sufficient for the Iron Ore commnity and the Gold Buffs.

Thus-there should be plenty of opportunity even as both halves start to
to appreciate.

Whilst a Gold Buff,I am sure the iron Ore will be the big pay off,as its enormity hasn`t even begun in some ways.

GLA

[anresu] 07/4/2011 11:34

Is the record date relevant? If you hold shares on the day before xd, you get the dividend whether or not you have sold them before the record date (usually two or three days later). In the case of dividend, the record date marks an internal company procedure and does not affect holders in any way.

[unionhall] 07/4/2011 11:27

13th....imho

[donska] 07/4/2011 11:24

Sorry for any stupidity....

Will AAAM ticker change tomorow to AFF or will it change on the 13th when AUE is born?

[yumyum] 07/4/2011 11:13

Very interesting in fact to see how the market drop tomorrow will reflect the value of Aureus. Fully agree with Horneblower...there may be an advantage to sell tomorrow....depending on the value you put on Aureus...or to buy !

The simple logic is to buy today and be sure you have plenty of both !

- yum

[chrisis33] 07/4/2011 11:12

I've taken an additional 2K shares today with this year's allowance, and popped the balance of £8K into CLF. I've decided to hold just over £2.5K of this year's allowance on the sidelines ready to invest into either AUE or AFF upon the split, depending on how the market values the individual companies over the coming days. Or I might also take more Cluff Gold depending on relative valuations etc.

Thanks everyone for the explanation about how the split may play out over the coming days. My view is that the value of AAAM/AFF should immediately reflect the removal of Aureus from tomorrow's open - however, as AAAM holders, we're effectively 'locked in' after today through to the 13th, as selling would be to throw away an entitlement to AUE shares. It'll make interesting viewing, that's for sure - and if the opportunity arises to pick up AFF at a silly price then I'll definitely grab more.

ps- parthus - also a big WTI fan, my second largest holding. I wish they were ISAable too.

[parthus] 07/4/2011 11:08

longsight: I concur most readily with ambuchanan ( only with marginally less greasing ) .. as I too have WCC and WTI..and more often than not skip through a myriad of drivel posts until I get to someone like yourself...so muchos gracias senor !

[ambuchanan12] 07/4/2011 10:58

long re8613 - You are selling yourself short "I'm not a particularly savvy investor" I watch and read carefully your posts on 2 of the cos you mentioned you have great insight and logic.. Thanks for your continued support. Ok enough greasing.

[richgit] 07/4/2011 10:53

Longsight

I concur.


Traders will have to do some nifty valuations calculating the overall value
of the 2 as AAAM will indeed represent what will be the new Gold etc.and will
obviously be valued at that level with the split off.

Thus if for any reason some do sell down what remains of AAAM it could be bargain time,and that will be the judgement.

AAAM will be trading as the Market value of the Gold and the fact it will
change its ticker code on the 13th is irrelivant.



So watch for any ignorance from the so called Market and get calculating
for any bargain thrown up.

[donska] 07/4/2011 10:43

I can't understand people who are selling today. They either believe that the split will have a negative implication on the valuation of the company or are blissfully unaware...

Has anybody held the ISA money back until after the split?

[unionhall] 07/4/2011 10:42

The fact that the Record date is April 13th will avoid that imho....