Sovereign Share Discussion Threads

[soulsauce] 31/10/2016 16:16

Agree Mr Roper same here.

[mr roper] 31/10/2016 16:15

this leg should get us to 1.3p, ss. maybe more. Would be happy for license sale news first before any RTO

[soulsauce] 31/10/2016 15:58

Chart looks phenomenal ready for a big push.

[soulsauce] 31/10/2016 15:55

Yes going right way Mr Roper, only small volume though. Think we will have some news of some kind this week.

[an1mal] 26/10/2016 18:43

Potential:
Assuming mine already in operation
Circa $500/oz all in costs for production (not unreasonable given the resource is shallow and grades good)
Gold at $1300/oz
Net $800/oz
200,000 - 500,000oz per annum production
$160m - $400m per annum

If we retain 30% in a JV then that's a fair chunk. But is JV still in the frame? Don't know. Lots of ways to skin this cat.

[charles clore] 26/10/2016 17:50

These guys are not messing about. The average punter has no idea of the enormous potential here. It could even dwarf a company like Centamin imho

[flavio_monteiro] 26/10/2016 16:47

2.5 Millions share bought today @ 0.88 by one person....Some one is confident!

[soulsauce] 26/10/2016 15:53

Interesting article on lse:-

[soulsauce] 26/10/2016 12:52

Nicely squiresquire very interesting indeed.

[mr roper] 26/10/2016 12:43

nice post squiresquire

[squiresquire] 26/10/2016 12:38

A few thoughts of mine, maybe correct maybe not, do your own research.

These are our main movers in Sovereign Mines of Africa.



Giles Clarke began his career as an investment banker with Credit Suisse First Boston. In 1981 he bought from receivership the assets of what was to become Majestic Wine, where, as chairman, he built it into a UK national chain. From August 1987 to May 1988, Clarke was chairman of Majestic Wine Corporation Inc, a United States company which owned a chain of 104 stores trading as Liquor Barn in California and Arizona. Following disposal of the US based businesses, he sold the UK plc business of Majestic Wines for £15 million in 1989.

In 1990, Clarke founded Pet City, where, as CEO, he built it into a chain of 94 stores (also dressing up at Xmas in the Swindon Store). After making the business public in 1995, he sold the business for £150 million in 1996 to US based PetsMart. In 1998, Clarke founded Safestore, building it into the UK's third largest self storage company, selling it to Bridgepoint Capital for £44million in August 2003. In 1999 Mr Clarke became CEO of Stepstone, an online career portal. Since he came on board, the company has raised NKr1.8bn ($197m) from the IPO in 2000 and grew from four countries and 200 employees to a staff of 1,385 in 18 countries.

Clarke then became Chairman of the Cricket Board, got his CBE and also the following:

2002–2007 As a National Council member of the Learning and Skills Council, the largest quango in the UK with a budget of £10 billion, responsible for all UK adult learning and a member of the Adult Learning Committee, a statutory body set up by the UK Parliament.
Clarke was Deputy Chair of the EU Task Force on Skills and Mobility and presented its report to the Barcelona Summit in 2002.
Deputy Chairman of the Bristol Old Vic theatre until 2007.
Patron of Changing Faces, the UK national charity supporting and representing people with disfigurement.
Master of the Society of Merchant Venturers, Bristol (2011)


Jeremy Sparrow was bought in by Clarke to SMA and along with Clarke invested as follows:

Giles Clarke as Chairman and Rupert Fraser as a non-executive Director of the Company with effect from completion of the Subscription (as defined below). In addition, the Company has raised GBP500,000 through a subscription of 500,000,000 new ordinary shares of 0.01 pence each in the Company ("Ordinary Shares") at a price of 0.1p each (the "Subscription"). Giles Clarke and Rupert Fraser have invested GBP100,000 and GBP125,000, respectively, in the Subscription alongside existing and new shareholders, including existing director Nathan Steinberg.

Nathan Steinberg was an existing director.

Mr. Jeremy Sparrow was a Managing Director at Investec and ran the Asian (including Australian) resource investment banking businesses. A highly distinguished investment and financing professional, Mr. Sparrow possesses over 25 years of extensive deal-making experience across multiple geographies and has led equity teams that have raised a combined total of over $23bn.

Prior to Investec, Jeremy spent 12 years with Renaissance Capital, as a Managing Director heading up Equity Products in New York and the UK before becoming the CEO of Renaissance Capital Asia, where he established the company's first Asian offices in Beijing and Hong Kong.

Notice Jeremy Sparrows interest in Hong Kong.

Now, today, we learn we have a CEO, his background is also Hong Kong as follows:

Rupert (48) is a former Officer in the British Army and is a highly experienced investment and frontier markets operator having run businesses for over 26 years across multiple geographies, with particular experience in Asia, Hong Kong and China. Throughout his career, Rupert has served as CEO across a range of companies, successfully building and growing Ptarmigan Eden Asset Management, a private Special Situations Company with significant experience in execution across global exchanges, private equity and venture capital investments supported by Credit Lyonnais Europe and UBS, a global commodities trading company and most recently Eugen de Buren, a resource focused Asia centric PE and Public Markets team, advising international resource companies and both regional and global PE equity funds.

At this stage its clear Clarke has something up his sleeve and has deliberately bought in people with very substantial connections / careers in Hong Kong / Asia.

So now we need to look at what SMA is actually connected to. Well if you read back into SMAs history you will find this from an RNS :

David Pearl, Chairman of SMA, said:

"We have been engaged in intensive and protracted negotiations with a substantial mining company. It is therefore very disappointing that no agreement has been signed and I would like to apologise to shareholders for the uncertainty that this has caused."


Immediately then Pearl went on to say:

Future funding requirements

At the time of the release of the Company's interim results on 28 September 2015 the Board received a firm commitment from one of its directors to underwrite a limited capital raise, as well as indications of support from certain shareholders. This commitment and indications of support were made at a pricing level below the closing mid-market price of 0.175 pence on 28 September 2015, and significantly below the current market price.

A capital raise is expected to take place shortly, and in any event before 31 December 2015. However, shareholders should be aware that without a refinancing in the immediate term, the Company will not be able to continue in operation.


This is the point when GC and JS have made their move along with NS.

Very clear in all this is that our main movers of today understood the companies position at that time and despite it being ' disappointing that no agreement has been signed ' they then put their first money into SMA.

At that point they secured control, got rid of Pearl and started to plan for the future of SMA.

They did mention Mandiana in the main RNSs, they said it had some estimated 610,000 oz from drill samples in just 7% of a measured strike. This led to an assumption of the possibility of some 6 million ounces if the rest of the line averaged out the same. However, there is very substantial additional information not mentioned.

The RNS stated;

' SMA announced a maiden inferred JORC gold resource of 610,000 ounces of gold at an average grade of 1.2 g/t based on only 15,500 metres of drilling and covering only seven percent of the mineralized strike. ,

They also said by RNS:

We always recognised the potential of Mandiana and the real opportunity to discover a multi-million ounce resource. A team from a major international gold mining group who visited the site in June this year were of the opinion that Mandiana has the potential for a Tier 2 gold mine supporting annual production in the range between 200,000 ounces and 500,000 ounces of gold."

Enter the Ebola dynamic.

I cannot go further now, time is pressing, but the story here is a small, very small, part of the actual picture that i see. The news will now start to flow.

[soulsauce] 26/10/2016 11:22

I thought the whole idea of a reverse takeover was to bring to the market an unlisted going concern to the LSE or Aim.
I am therefore not sure why a cash call, given we still have a good amount, would be necessary in the short term?

May be one for squiresquire?

[an1mal] 26/10/2016 11:16

In meantime, Paleje, lots of swings to play with.

[effiert] 26/10/2016 10:37

someone bought £120k worth of stock recently at 0.8p so im sure they will be in the know

[effiert] 26/10/2016 10:32

250k max offer now. this has to crack soon. dig deep boys ive done my bit and taken another 200k

[effiert] 26/10/2016 10:20

the risk is bring out imo when news hits.

paying full ask and offer just gone down to 300k. can see this moving up sharply towards 1p prior to news.

[paleje] 26/10/2016 09:41

An1mal's observation/ question (2733) very relevant imo -

"Cash will come. But in what form? RNSs talk of shareholder value, but which shareholders?"

GC regards pi's as an inconvenience. BoD will likely have funding lined up but it could be at quite a discount to satisfy city chums. Pi's will get their value in due course or even imminently after that.

At the risk of losing out I'll wait for the news.

[flavio_monteiro] 26/10/2016 08:15

Deal is all done awaiting solicitor sign off... Why would the employ a CEO?
Rupert, Giles have a large stake in SMA and Jeremy has options....

[effiert] 26/10/2016 08:13

Well with a tiny market cap, cash in bank, and BOD of such calibre this could turn into a short term multbagger from these levels.

These type of RTO's have a habit of going up massivly

[an1mal] 26/10/2016 08:03

Cash will come. But in what form? RNSs talk of shareholder value, but which shareholders? Who's going to reverse into SMA I wonder?

[soulsauce] 26/10/2016 07:58

Interim results are just a click away Truly, well cashed.

[trulyscrumptious] 26/10/2016 07:56

What's the cash situation here?

[an1mal] 26/10/2016 07:51

It's not your usual lineup for an AIM tiddler, is it lol!

[charles clore] 26/10/2016 07:41

An impressive addition to the board.