Oriole Resources Share Discussion Threads

[1bond] 04/8/2023 08:11

This is not death spiral in the classic sense. Lanstead are not selling shares each month in order for the company to receive funds. I agree with nico115, that there is no chance of the company receiving 1.7m, as the shares need to trade at the benchmark price 0.25 or above every month for that to happen. If they did the Lanstead deal at the current price, there would have been a reasonable chance of receiving the full proceeds over 24 months. The premium is misleading and ridiculous. Lets hope they don't need the full £1.7m to survive

[willo] 03/8/2023 21:55

Maybe the BOD didn't have a choice?

What I do agree with you on is in relation to the presentation of this. Trying to spin it as a placing at a premium is just appalling!

[nico115] 03/8/2023 16:35

You can spin it any way you wish Buy the BOD have f####d it big time Eileen obv doesn't understand a death spiral She will when these half again and they get 300k and not 1.7m pds!!Wow I'm in disbelief and to write 0.25 is a base case and 0.19p the placing premium price How can the Fca allow this ? It's basically lying ..in my opinion putting that rns out should be a jailable offence as it's trying to mislead investors I won't buy one more share here as this BOD have NO IDEA the financial repercussions of this death death spiral

[browngirl] 03/8/2023 12:49

oh dear ! Tim is a baffoon

[roberth176] 03/8/2023 11:54

Placing coming

[terminator101] 03/8/2023 08:16

"Great explanations". Hilarious. He hasn't got a scooby doo how this arrangement works. And the fact that he can only find two previous examples means he's not that well researched. Go look at VRS or RRR for starters. Lanstead take zero capital risk. They were given millions of shares and will sell them every month and give the proceeds to the company after extracting their fees. It's like constant placings for the next two years and they literally just sell them into the market. If there's no liquidity which is likely because Orr is a pile of excrement then the share price tanks and they have to sell even more shares to generate the same revenue next time.

[geotrav] 02/8/2023 17:29

Some really good explanations on LSE fro ‘Slowly Slowly’. Worth a read for those who think they know what’s going on, but are simply repeating unresearched commentary.

[terminator101] 02/8/2023 16:20

I love death spiral finance. Plus this one has all the messages the gerbils want to hear about "premium price" "strategic investor" to dress it up. And married to such a pile of lifestyle pish too. Lovely.

[willo] 02/8/2023 11:13

Lanstead sell shares every day during the VWAP calculation period to raise the money to make the payment that is required. All they need to worry about is ensuring that their sales match the vwap. So month 1 for example they will sell roughly 39m shares; assume the vwap is 0.13, their sales will realise £50,700. They will be obliged to pay Oriole £73,625 * 0.13 / 0.2533 or £37,786. They make a risk free profit of £13k. They have no interest in being long term shareholders of the company.

Unless there are naturally buyers in the market to absorb their sales, the laws of supply and demand result in the share price falling. This is why it is called a death spiral.

[nico115] 02/8/2023 10:25

You really think they are paying 0.19p?Have you ever seen a death spiral before ?To create liquidity and sell shares they will need to drive the price lower .Take a look at Lanstead deals ..90 pct fall over the 3 month period For me this is an awful deal Shocked Eileen would agree to it as she has skin in the game At 0.06 we raise 600k ..madness Let's hope that doesn't happen

[geotrav] 02/8/2023 10:05

Why would Lanstead want to sell their shares at a lower price than they pledged?

[nico115] 02/8/2023 09:50

But why not wait until Lanstead start selling as they will need the shares lower to sell?

[stockriser] 02/8/2023 08:05

Just dipped my toe in with £2k at 0.1162p

GLA SR

[nico115] 02/8/2023 07:45

Eileen carr invests 200k at 0.17Then allows Lanstead to whack the shares !!They will only raise 800k at this price and shares won't rally on any news !!

[induna123] 02/8/2023 07:40

that's the problem with these small mining stocks, they hay be sitting on a great asset but always need funding, ie dilution for shareholders to realise the asset.

[trotterstrading] 01/8/2023 12:59

A lot of AIM CEO's are clueless to the impact of this type of finance to the their SP, naive at best

[geotrav] 01/8/2023 10:25

Seems like a better deal than a raise at todays markets discount levels.

[geotrav] 01/8/2023 10:24

From share price Angel:
Conclusion: Despite continued challenging conditions in equity markets, Oriole has successfully agreed terms with Lanstead to support their strategy going forward. The team continues their discussions with project-level financing partners to advance the Eastern CLP following encouraging high-grade gold samples, warranting drilling. The Company is also currently completing local-level technical studies at the Bibemi project, which holds a 304koz JORC MRE. This should enable them to further de-risk Bibemi, offering an entry point for JV partners to take the asset towards production.

[nico115] 01/8/2023 07:47

And Claire invested 195k at 0.17 and then agrees to a death spiral ? Wow

[willo] 01/8/2023 07:40

If the VWAP going forward is 0.19, my read of this is that the subscription is effectively at 0.13 based on the examples they have provided. However, Lanstead will presumably be selling all these shares to provide the cash so in reality it is unlikely that the share price will be at 0.19. Expect the downward spiral. Oh dear.

[the_debt_collector] 01/8/2023 07:01

Oh dear, they have entered into a death spiral facility with Lanstead - exactly the same as RRR did with another outfit and then ditched, the headline price dressed up at a premium but with future conversion prices based on VWAP.


In RRR's case the first batch of issued shares was at a 39% premium at .70p, within 18 months they had to settle up at .11p.





Do the BOD realise what they have entered into here??

Expect the share price to drop in due course.

[langland] 01/8/2023 06:42

No, they don't pay a premium. And ORR is pretty frugal with its cash. One of the first times I came across Lanstead was with IMM several years ago and there was nervousness with several of us shareholders at the time. However, it didn't stop the shares going from about 40 to 190 in the space of about 6 months. If ORR has positive news in the next 6-12 months the shares will rise irrespective of Lanstead.

edit....and arguably it has been the funding question which has held the share price back in recent months.

[shortarm] 01/8/2023 06:23

Normally Lanstead are the death spiral kings...Not sure they often pay a premium though?

[geotrav] 01/8/2023 06:09

RNS out this morning

[the_debt_collector] 31/7/2023 16:57

Regardless whether the $1m proposed project financing was for gold or lithium it looks like they have not secured the funding as it was expected to close by end Q2, once again it does look very much like shareholders may face further dilution as the bank balance must be getting low.

They had around £500k (net) at 31st December and have added £350k to that since but the burn runs at c£50k a month so the market is starting to price in a placing.

Buyers will hold off until there is clarity IMO.