Galileo Resources Share Discussion Threads

[red rook] 03/12/2019 22:14

... if Birdie calls back ... record the conversation ... it may be useful to provide as evidence :-)

[red rook] 03/12/2019 22:09

DaveTheChef,
...regarding Birdie having applied for the mining license AND environmental permit. You posted on 27 Nov '19 - 15:29 - 156 of 176, that you had 'left a telephone message on their London Office' .... did you get a reply :-)

[davethechef] 03/12/2019 21:05

Taken from LSE, earlier today, care of oiltap's post
'I called Andrew Sarosi and had a quick chat. He is optimistic on getting the offtake agreement signed with JLP and they are at the final stage of negotiations - dotting the i's and crossing the t's. In addition I asked him about contracts with hauliers and miners. He said they had several quotes in, and they are working their way through them and it's looking good.'

Looking positive!

[tim000] 02/12/2019 14:49

If one looks through the history, GLR's TVR RNSs are sometimes followed (within a week) by substantive news, either on projects and/or finance. I'm guessing there will be news of some kind before Xmas.

[tim000] 02/12/2019 14:33

True, the strategic value of these assets may have increased to a US investor, but I imagine they would wish to buy out FMO at the same time, making the transaction more complicated. I haven't yet seen any transactions for REE projects, nor external investment in such projects (at least on AIM), arising from the desire of the West to become less dependent on China for rare earths. Does anyone know differently?

[the bull] 02/12/2019 14:15

Thanks tim, politics now plays a part though, that is if some US company makes an offer.

[tim000] 02/12/2019 12:37

The Bull asked above what value GLR's 34% stake in the Glenover JV might attract. I've now researched the history of the company more thoroughly, which provides an answer. Fer-Min-Ore, the South African JV partner, offered GLR $4 mn for its stake in Glenover in January 2015, but the prospective sale was terminated by mutual agreement in August 2016. It is not known why the transaction didn't proceed, nor whether FMO would still be a willing bidder for GLR's JV share today (the minority share will be much more attractive to FMO than anyone else, unless the prospective purchaser also buys out FMO at the same time). But imo it seems likely that any bid would still be of the order of $4 mn, as the project doesn't seem to have progressed significantly since then, and the carrying value of the project in GLR's accounts hasn't changed significantly either. $4 mn should more than fund the company to the point at which it is earning substantial cashflow from Star Zinc next year. The award of a mining permit, the sign-off of an offtake agreement with JLP, and a sale of Glenover for circa $4 mn, all in a short time period, would truly be transformative for GLR, and its share price.

[fatgreek] 30/11/2019 13:46

Better to be in here now than when the share price re rates on news.....

[davethechef] 30/11/2019 13:10

Tim000,
Agreed, that UJO placing & the unfortunate lead-up to it, 'killed' the share price But I've transferred most my funds there to here recently.
I see this as unloved & off the rador presently, but with very good portfolio of projects, which should excite going into next year.
I was invested here years ago but sold-out before it 10-bagged. Doh!

[tim000] 30/11/2019 08:25

O/T BMV is a similar type of play to GLR, but is a gold miner in South Korea. I used to be a shareholder, but sold out due to the lack of progress on receiving permits and financing the gold processing (there is no third party for processing, unlike here). Still, the permits are about to be concluded, followed by finance for gold processing, and the company should be mining and generating cashflow within 6-12 months. One to follow for the future, should anyone wish to invest some of their profits from GLR!

[tim000] 30/11/2019 08:12

I know this is obvious, but the company can't sign off and announce an offtake agreement until after all the necessary permits are received. GLR and JLP have had plenty of time to agree a standard industry contract for the supply of ore, and GLR has had plenty of time to sign up a contractor to mine and transport the ore. Governments are notoriously slow in granting mining permits, but once that is received it is reasonable to assume that an offtake agreement, followed by a contractor agreement, will follow fairly soon after. And there is the possibility of a sale of GLR's stake in Glenover too. So the newsflow should be thick and fast once the permit is received, especially as JLP's zinc circuit should be up and running within six months. Finally, good news tends to be squashed as far as the share price is concerned, whenever finance is an issue - see UJO for a very good example. So reassuring investors about working capital is the final piece in the jigsaw that would see the share price rerate substantially.

[fatgreek] 30/11/2019 02:49

https://www.proactiveinvestors.co.uk/companies/news/223138/galileo-resources-targets-mining-permit-for-star-zinc-after-initial-inferred-resource-223138.html

[tim000] 29/11/2019 14:23

I agree with that. I'm afraid I've no idea what value might be placed on Glenover. When a company is known not to have the resources to develop an asset itself, it's not going to get top dollar. But that will always be the case, and the value of cash to GLR now is greater than it has ever been, or will be in the future (in terms of avoiding dilutive equity issues). And clearly the hype that surrounded RBW recently when the Americans expressed a strategic interest in rare earths, suggests now is as good a time as any to sell. As you say though, that can be a long, drawn-out process. Hopefully that is going on behind the scenes, keeping CB busy. Lastly, I note that CB/GLR has history in terms of selling off assets to raise cash, so CB knows how to do this.

[the bull] 29/11/2019 11:46

Nice holding tim, slightly behind you. Agree on selling but guess he's trying to achieve the most he can for it but not at the expense of holding up progress elsewhere or savaging the share price with more share issues. What sort of sale value would he get for such an asset do you think. Anything meaty would set the share price alight wouldn't it, making your next purchase very much more expensive.

[tim000] 29/11/2019 09:01

Personally I'd prefer it if they sold an asset that I think they've already stated is non-core and won't be developed by themselves, in order to accelerate projects that are capital-lite. Time is money, imo accelerating cashflow asap is infinitely preferable to a "go it alone" approach. The latter is much more risky; without cash reserves on the balance sheet the development strategy can more easily be blown off course. I already own 7mn shares, if they sell an asset to raise cash, I'll buy more!

[excellance] 28/11/2019 18:01

or let the warrants lapse and sell none core some assets, or get star into small scale production to get some revenue and grow organically from there. they could even get a loan if they have a reasonable business plan to show to the banks.

[davethechef] 28/11/2019 17:56

Interesting insight tim000, that would be very positive if it'd panned-out similarily.

Hefty, delayed buy from yesterday, 7million at .50p.
Encouraging!

[tim000] 28/11/2019 13:30

The company has placed 330 mn new shares since August 2017, increasing the share capital (now 558 mn shares) by 140%. Obviously, Colin should be trying to avoid further dilution at all costs. Some additional capital will most likely be needed to permit and develop Star Zinc, prior to it generating substantial cashflows. So an imminent trade sale of Glenover would be sensible in my view. Also worth noting that there are 181 mn warrants outstanding, of which 50 mn are exercisable at 2p (potentially raising £1 mn) but expire on 17 April 2020. I know it's a tall order, but if the company could persuade shareholders that no further placings are needed, and that it can get the necessary mining permits and offtake agreement signed within the next few months, then a share price of over 2p may be feasible by next April. That brings the prospect of raising a total of £1.8mn via the issue of warrants (including £800k from warrants exercisable at 0.6-0.75p). Total share capital might then be limited to about 750 mn shares, with no further dilution required. And given the assets of the company, a share price of over 10p looks perfectly achievable in the medium term.

[davethechef] 27/11/2019 15:29

Red rock,
An attendee at the recent Proactive Investor evening had reported that Colin Bird had confirmed this, considers a formality & usually takes no more than 90 days.
I've also left a telephone msg on their London office 0207 581 4477 to confirm the aforementioned.
So waiting to hear back.

Excellance, can you put a link in your headings to the Nex exchange please.
It seems, especially today, most of the trades have been put through on there, inc a 3mill, 2mill all at .503p & a 2mill at .504p. Plus my 591k at .503p
I can't attach nex link, as on mobile presently.
TIA

[red rook] 27/11/2019 14:28

Dave,

with respect ... the application of the mining permit, as well as the environmental permit, must be in an RNS. All other mining companies that I am aware of would RNS the submission date... I have checked past postings, and even the dodgy CEO of BMR (Alex Borrelli) did so ! It needs to be clearly stated when it was submitted.

Further, when you state ...'I understand that the mining application was commenced approximately September...' can I ask who provided you with this undertanding?

At the best of times Birdie is known to be a consummate liar ... so a verbal confirmation over the phone, or an e-mail, should not inspire confidence.

[davethechef] 27/11/2019 13:59

I understand that the mining application was commenced approximately September(GLR wouldn't RNS i'd have thought- just when finally received)& normally takes about 90 days, so hopefully soonish.
I picked up another 591k earlier ay .503( maybe on NEX) so here's hoping for a good recovery & good news.