Does anyone understand the warrants and how they might be exercised (or sold if we already have them??) over what time period please? Not that now id a good time to exercise any!
Under the terms of the Scheme, Scheme Shareholders on the register at the Scheme Record Time, being 6.00 p.m. (London time) on 15 April 2016 will receive 0.68 New Perseus Shares and 0.34 Warrants for each Scheme Share held, subject to rounding for fractional entitlements. Perseus has made applications to the ASX and TSX for the New Perseus Shares to be admitted to trading and such admission is expected to occur on 21 April 2016. It is expected that statements of entitlements will be despatched to Scheme Shareholders before 2 May 2016.
Under the terms of the Combination, Amara Shareholders will be entitled to receive:
for every Amara Share: 0.68 New Perseus Shares and
· Each Warrant will entitle the holder to subscribe for one New Perseus Share at an exercise price of A$0.44 (representing a premium of approximately 24.1 per cent. to the 10 day VWAP of the Perseus Shares on the ASX as at the Last Practicable Date, and a 32.8 per cent. premium to the 20 day VWAP of the Perseus Shares) at any time during the 36 month period after their issue.
"On the market your shares are currently traded on they have a zero value, however these shares continue to be traded on the Australian market.
We are able to cross border your holding from the UK to the Australian market but there will be a custodian fee of £78.00 in order to transfer, this will then update your account with a value"
Not sure where to go from here as £78 is about a half of the value of the Amara shares, so might have to right off!!
I have asked them why I wasn't advised of this before the transfer occurred.
With regards to the corporate action for your Amara Mining shares, your Perseus DI??s will not show any value just now as we do not have a live price feed for this stock. Perseus are trying to obtain a UK listing for their shares in the next 12 months and if this is successful then you will see the share name and price within your account.
As a holder of Amara Mining Plc you will receive 0.68 new Perseus Shares
and 0.34 warrants.
The timetable is as follows:
Last date for dealings in and for reregistration of transfers and
disablement in Crest of Amara share is 15 April 2016.
Scheme record Date is 15 April 2016
Scheme effective date is 18 April 2016
As New Perseus shares are an Australian security they cannot be held in
Crest. A Depositary Interest (DI) arrangement is to be established to
overcome this, by creating entitlements to the New Perseus which are
deemed to be UK securities and are therefore admissible in Crest. A holder
of the DIs may settle off market trades in Perseus Share DIs between
Crest participant accounts in the Crest system.
If a shareholder holding Perseus Share DI subsequently wishes to trade in
the underlying Perseus shares on the ASX or TSX they would need to
arrange a transfer into their own name to hold directly on the Australian
or Canadian register.
Perseus anticipates that if it decides not to seek a standard listing of the
Perseus shares on the official list of the UK Listing Authority within 12
months of the scheme effective date it will cancel the Perseus Share DI.
On such cancellation, holders of Perseus Share DIs will be notified and
transferred to the underlying Perseus shares to hold directly.
Please note that this is not an inducement to trade and should not be
considered financial advice. If you are in any doubt about what action to
take, please consult your financial adviser.
""how can you sell though they are not traded in the UK? "
If your nominee account holder does not trade on ASX or TSX then you will need to open an account with someone who does and transfer the shares to them.
I had to do this a couple of years ago when Medusa (MML) delisted from the LSE and moved to ASX. Halifax/BOS did not trade on ASX so opened an account with TDD. Not the cheapest to trade at £12.50, but you do get electronic voting.
Be warned, the transfer can take months to complete."
I voted against - to no avail. This is what I got from Halifax -
"We were in touch a few weeks ago regarding your shareholding in Amara Mining plc through Halifax. I told you that I would be in touch again with more information about how you can continue to hold you shares going forwards.
Once the business combination completes with Perseus, your Amara shares will be converted into the appropriate number of Perseus depositary interests (DIs).
Our understanding is that DIs can be held in CREST accounts through Halifax and that no positive action is required to be taken in order to be issued with the DIs and that the DIs will be ISA eligible, so there is no risk in continuing to hold your stock with Halifax before the business combination completes.
Amaras advisers are working on a solution that will enable shareholders whose providers (like Halifax) do not offer international trading to trade DIs should they wish to and we intend to provide an update to all shareholders in relation to this once the business combination has completed. In the meantime, we would encourage you to contact your existing broker should you have any further questions."
Perseus Mining Limited is an Australian based Gold Explorer focusing on under-explored gold belts in West Africa. At present Perseus Mining Shares are listed on the Australian Stock Exchange (ASX) and the Toronto Stock Exchange (TSX).
As Perseus Mining Shares are an Australian Security they cannot be held or settled in the UK Settlement System, Crest. To overcome this the Company will create Depositary Interests in the UK which can be held in Crest. Each Depositary Interest will represent one Perseus Mining Share. It will only be possible to trade these Depositary Interests if a market is created for Perseus Mining in the UK. Perseus Mining has stated that it will examine the merits of a listing on the London Stock Exchange (LSE) on completion of the acquisition. If a UK Listing is not obtained you may have difficulty selling this investment at a reasonable price and, in some circumstances, it may be impossible to sell it at any price. It may be possible to trade Perseus Mining Shares on the ASX or TSX. In order to do this you would need to first transfer the Shares into the Australian or Canadian Market. Further details of this procedure are contained in the attached appendix.
Just looks too dodgy and i dont think they will list otherwise they would say so which makes it very hard to crystallize your asset.
Please can you post where you think "they" said they could just cancel your shares? Information in the public domain appears to contradict this:
Security of CDIs
At first glance, it looks as if owning a CDI means that you are further removed from owning the underlying stock but the difference is smaller than you might think. Although the structure of the CDI means that the underlying stock is held in the name of CREST rather than in your name being on the register of shareholders, the same is true for most share ownership today.
Foreign securities bought through a UK broker and held overseas with CDIs are almost invariably held in nominee (i.e. in the name of a subsidiary of the broker that holds stocks on its clients behalf). The same is true of most UK stocks, unless you have CREST personal membership through your broker.
As with any stock held in nominee, you still have economic rights over the share underlying the CDI. You will receive dividends and CREST will process corporate actions such as stock splits and rights issues.
The safety of brokerage account holdings is an extremely complicated topic, and just as with all nominee holdings there are some theoretical risks. However, the fact that CDIs are issued by the central securities depository a crucial part of the financial infrastructure means that they are unlikely to be the weakest link in the custody chain.
they will be hard to trade unless you convert to ASX or TSX which is the logical thing to do but they can't just cancel them.
and the note that came through yesterday says will look to trade and they have year to decide whether to list and if they dont they can just cancel all the shares...sold out as can't be doing with the hassle and booked an £850 loss
Aisc is high because head grade is lower than expected. This is expected to increase as the ore body is mined out later in the year. The risk is that their models are wrong. The company have admitted teething problems in the transition of explorer to producer, it might be interesting to some holders to listen to the quarterly webcasts.
As at 31 December 2015, Perseus's gold price hedging included 120,267ozs of gold sold forward at a weighted average price of US$1,276/oz."
So they have over 50% of 2016 production hedged at $1276, not far above today's gold price. In this scenario they will make little on their hedging this year, and nowhere near the $23.6M they made hedging in 2015 (much of this profit was due to previous hedges at $1432and $1600).
Perseus's mining costs are rather high and have been rising. Their December 2015 Quarter although claimed to be exceptional was $1408, (and no $1408 is not a typo).
Gold Production & All-In Site Cash Costs
December 2015 Half Year - Gold Production 76,693oz @ $1208
June 2016 Half Year - Gold Production 95,000-115,000oz @$1,100-1,300
Financial Year 2016 - Gold Production 172,000 192,000oz @ $1,130-1,250
If production costs are at the top end of this years estimate of $1250 per oz, it will leave very little profit when sold at the hedge price of $1276. So 2016 earnings look like being far below those of 2015.
Amara's Yaouré mine is 18 months to two years away from production. Seeking Alpha claim it will "cost $334M to build the mine, and assuming a 40% equity requirement, Amara would have had to come up with $140M in cash". Perseus may well have the initial $140m, but if the gold price retraces it is difficult to see where the remaining $200m will come from without borrowing. They also have a mine of their own (Sissinge) to develop, which needs another $79m spent on it. This is currently being mothballed until the gold price rises.
I think that this is a great deal for Perseus whose high costs and low hedges mean they will struggle to make much of a profit for the next year or two at today's prices. They are gaining a very good low cost gold mine to add to their costly and declining portfolio. I do not believe that it is such a good deal for Amara shareholders, and expect they will see little return on their investment for the next couple of years.
I bought some more today, sold out of chal at a 50% loss so I think there is potential of getting a 100% rise here in the near term even without another bid. With gold rising there is plenty of time for us to get the bid before the deal is closed. It would be nice to get 20p plus for ama.
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