Chaarat Gold Share Discussion Threads

[2pablo] 05/8/2024 13:53

Farrugia, I’m not saying the Rns 4.3% is wrong just that we only had about 52% before this dilution as Labro and MA had about 48%.

So, we’ve gone down from about 52% to 4.3% approximately a 1:13 dilution. (NOT 100% down to 4.3%)

[book5] 05/8/2024 10:08

If any of the directors are bying or selling, and they report it, we should know through an RNS

There is no RNS regarding the recent death; I hope it was not in one of our installations.

[tractorhead] 05/8/2024 09:37

book5, yes you are right that only interest will be converted. Well spotted. I realised my mistake as soon as I posted. And so yes, there is a risk that there may be yet further dilution.

I wonder if Martin is trying to sell down his shares? WOuld be hard to get them through the market given how many he has?!?!

[farrugia] 05/8/2024 08:09

well i bought some because the stock has been battered to a pulp - I just bought 6k worth of shares and only because the mineral resource in here is huge.

[book5] 05/8/2024 07:04

It is not clear whether the 4.7 million will be spent; CGH will need authorisation

[book5] 05/8/2024 07:02

B) the US$4,750,000 balance to be capable of being drawn down by the Company in tranches up to and including 1 December 2025 but subject to consent by the noteholder representative (the "Noteholder Representative") (which is proposed to be certain core Noteholders acting collectively as the "Noteholder Representative" for the purposes of the amended Instrument), such balance to be made available by either:
1) nine initial Noteholder investors who have, subject to paragraph (2) below, committed to underwrite and subscribe to the full US$4,750,000 balance (provided that any drawdown by the Company is subject to the consent of the Noteholder Representative); or
2) certain prospective Shareholder investors and other noteholders (which excludes Labro, MA and their respective associates) who may in aggregate subscribe to up to US$1,000,000 of the US$4,750,000 balance, provided that any such investor must commit a minimum of US$100,000, must make an expression of interest to participate

[book5] 05/8/2024 06:46

Tractor
No debt?
Is it not the case that approximately only 50% of the debt is converted into new shares? Therefore, the debt will be around $20m
Therefore, we could have another dilution in the future
. Investors may be keeping this afloat not to make a profit but to reduce losses

2Pablo

The main positive I see is that some are investing 5 million. I wish those participating included the directors and accepted shares rather than notes.
Best wishes

[farrugia] 05/8/2024 06:33

but in the RNS it is clear in that it states

'(v) the remaining shareholders holding approximately 4.3%,'

It states 4.3% - how can the RNS be wrong?

[2pablo] 04/8/2024 09:49

Labro and MA going down to 19.2% from about 48%, so they’re holding going down by about a factor of 3. This is because they are benefitting from a medium sized Noteholder holding themselves being converted @ 390 to the $1 or about 500 shares to the £1, ie converting @ 0.2p.

So they’ve suffered a 1:3 dilution whereas we’ve suffered a 1:13 dilution NOT 100% down to 4.3% or about a 1:25 dilution

[2pablo] 04/8/2024 09:05

Those calcs aren’t correct. At the present time other shareholders including us (besides Labro and MA)only hold about 52% of shares. That’s why I say we’re getting diluted by approximately a factor of 13 (approx 13 X 4.3 = 52 ).

Last week I multiplied my holding by a factor of 3.5 after purchases @0.185p and @0.125p. I’m thinking my holding is now getting diluted by about a factor of 4.

When Private we will all have the same number of shares as we have today but, for sure, we will be heavily diluted as will Labro and MA

[farrugia] 03/8/2024 16:11

why is it a great entry price?

once private you will be diluted to shreds.

the conversion of all outstanding interest and restructuring fees (save for the interest accrued on the Initial Advance, which shall be settled in cash) owed on the Notes from 11 September 2018 to 31 July 2024 (inclusive), being US$19,812,277 on 31 July 2024 into Ordinary Shares, such conversion to be satisfied by the allotment and issue of Ordinary Shares ("Recapitalisation Conversion Shares") to each Noteholder, which are to be subject to the lock-up provisions referred to above, on the basis of 390 Recapitalisation Conversion Shares per US$1 owed (pro-rated if applicable), calculated on the same basis so as to result in:

(i) the Noteholders holding approximately 80.7% (including Labro and MA);

(ii) the Noteholders holding approximately 76.5% (excluding Labro and MA);

(iii) Labro holding approximately 16.9%;

(iv) MA holding approximately 2.3%; and

(v) the remaining shareholders holding approximately 4.3%,

so you will end up with 4.3% of your holdings today?

[tractorhead] 03/8/2024 12:09

Next week is AGM (on 8th). If voted throug, this will de-list and go private.

The re-organised company will all of a sudden have no debt, enough committed working capital to keep it going for 6 months or a year and no awkward super low listed share price.

That will surely make trying to find suitable funding much easier? Looks like the CLN holders have played a blinder here. Shareholders screwed.

[book5] 02/8/2024 17:19

First, I would need to see Directors buying decent amounts

[tractorhead] 02/8/2024 17:15

I guess a lot of people (or even funds) won't want (or be allowed) to own shares in a private company? For those buying, it is a great entry price!!

[book5] 02/8/2024 16:10

I would like to see Directors buying with new cash
Their absence is concerning

[2pablo] 02/8/2024 14:20

Unbelievably low sp, surely no logic in selling at this price. It’s a binary situation, get funding or go bust and with the former there must be profit from 0.12p

[book5] 01/8/2024 16:06

Has a worker died in our factory?
Is there another mining company with a similar name?

Do we need an RNS to explain this news?

[2pablo] 01/8/2024 15:39

Spoke to a very friendly, helpful, understanding lady at listed at the bottom of the RNS :

St Brides Partners Limited (Financial Public Relations)

[phone]

Susie Geliher

Isabelle Morris

This was Susie Geliher. She explained how the company thought delisting and coming off Aim was best for their future. All in all it costs around £500k per year to be on Aim and they didn't feel there was the need to continue. She thought AssetMatch would prove a useful place for shareholders in the near future and that either with AssetMatch or another provider it would probably continue for the foreseeable.

Beyond AssetMatch, she also confirmed that a Sale or Special Dividends, if and when the company becomes profitable, would be means by which shareholders could have value returned.

She also confirmed how Labro and Martin A have also taken a big hit with this share reorganisation, taking their hit just like ourselves in order to keep the company afloat. It is of course unknown why we have not received funding but she agreed with me that if the Krygyz govt want the mine, they will make it happen.

Obviously no-one is happy and we have been diluted by about a factor of thirteen I think(728m shares up to 9,579m shares) but it strikes me we have not gone bust, PoG is still going higher, and after Privatisation, funding should prove perhaps more possible.

[ed sturman] 01/8/2024 15:01

Book5 The $5m will come from the “certain other LNHs, excluding Labro”. I am not sure under what conditions but I think it is laid out on pages 4-6 of the publication, if anyone can decipher it. I think it is for running costs and restructuring fees.

Yes MA is converting his loan (loan notes) into shares, as described in my post below and he will end up with 1.5 billion shares. This is over 16% of the company, which is more than enough once the mine is profitable and it will be.

[ed sturman] 01/8/2024 14:52

Book5 The $5m will come from the “certain other LNHs, excluding Labro”. I am not sure under what conditions but I think it is laid out on pages 4-6 of the publication, if anyone can decipher it. I think it is for running costs and re structuring fees.

Yes MA is converting his loan (loan notes) into shares, as described in my post below and he will end up with 1.5 billion shares, This is over 16% of the company, which is more than enough once the mine is profitable and it will be.

[book5] 01/8/2024 13:51

2pable
Thanks for your work.
CGH is keeping the PIs in the dark.
So many questions

[2pablo] 01/8/2024 11:05

Anyone notice that stuff near the end of the 16 July RNS in the Amended Articles. If a Proposed Purchaser comes in, holders of 50.01% shares, which must include the noteholders, can compel everyone to accept.

Maybe a Proposed Purchaser might be on the cards. Anyway, trying to contact our Nomad and some of our Joint Brokers and Financial Public Relations teams to see if they’re able to shed any light on going Private that I haven’t already figured out.

[2pablo] 01/8/2024 07:41

Tractor, I’m thinking the same as you. Labro and MA hold nearly 50% of CGH shares and I think only a small percentage of the loan notes. After this restructure, Labro and MA are taking a massive haircut just like us but they’re shedding £m’s in their case.

I think the Loan Note holders struck a very nasty deal and how they managed it I don’t know, perhaps if we had gone bust they would get first payout from any fire sale, and therefore had us over a barrel.

I am also wondering if ‘miraculously’ funding will suddenly materialise after Aug 16. There has to be a reason why funding has taken over five years to NOT materialise.

[book5] 31/7/2024 17:12

It could be that only a part of the LNH requested payment.
We are the weakest "link"; the rest are interested in squeezing us out.

My questions are:
- Why did the management issue such bullish RNSs?
- Why did the share price prince go down after the RNS initial spike? Were insiders selling?
- Why did CHG not provide a contact for the Chinese company
- Who is providing the 5 million dollars, and under what conditions?
- Is Martin converting his loans into shares?
- why do they need 5 million?
What are the problems with the Chinese company?
-are there any problems not reported?

[ed sturman] 31/7/2024 15:32

These are rough figures, excluding our share holdings.

From the Key Statistics on page 3 of the publication (see website, click on Investors and scroll down to Shareholder Documents).
MA will have just under 20% of the existing ordinary shares after the loan note conversion, via

Labro 394 million
MA in respect of deferred salary 214
Labro in respect of settlement of Labro Working Capital Facility 897
= 1.5 Bn
Other LNHs 7.3 Bn

So yes he has had a dilution, but will still be a substantial share holder.
I cannot find out who the other LNHs are,
China Non Ferrous Metals had 3% shares in April this year, but cannot see any connection to Xiwang.

I still think they will secure finance, given the amount of gold in the ground plus the current gold price.
Looks like an engineered debt crisis; but by whom? All LNHs or the others excluding Labro?