NML is due its interrim results now, last year it was the 28th of this month.

They are setting up a new site to explore/research/analyse and all the equipment to do this should be on site now, and drilling should start soon, all this extra news should be covered in the interims.

does anyone have any further positive views on this company ??

A tad premature GB???

Looks like it.

VV.!

So a further 62 million shares have been added to the 173 million? already in issue, quite a dilution IMO.

Of course the cash is added too, so at the moment the company is better off, and provided it puts it to some good use, the dilution can be nuetral.

BUT, if it wastes it, then that really would be game over IMO.

With the current bid at 0.8p, those placees at 2.77p must be pretty miffed!
The 1.1p's won't be that happy either!

Does anyone know which brokers these shares were placed through?

It may be interesting to speculate which new placees made it a condition of their money that certain connected parties/old placees had to put up the higher price. No one did it for fun or out of generosity, I am sure of that.

sd

Stockdog,

Interesting comment!

Out of interest, how do you know that "new placees made it a condition of their money that certain connected parties/old placees had to put up the higher price"?

So are you saying that the new placees only bought 48 million shares by making the older placees agree to buy them at a much higher price?

Sorry but they are businessmen, not charitable institutions, you're way off the mark there IMHO.

Does anyone know which of the three kimberlites on the C9 concession it was that NML were 'parked' on?

Thanks for the mail Takahe...very interesting and yes SD is right and my thoughts too. No one is going to buy huge amounts of a share at a much higher price unless they are convinced there is a good profit to be made. Obviously we don't get to see the info. they saw but it looks interesting.
Di

Di,

Are you seriously suggesting that people agreed to pay 2.77p yesterday for a share that was 0.8p BID?

not yesterday Andy but it must have been recently and NML have been down below this for a long time.

Di,

Well, looking at the chart, the price suggests September to me, I wonder how long they can hold back an announcement for?

Generally, placings are at a discount to market price, as an incentive, so IMHO that would have been done when the price was at 3p or more.

I'm surprised nobody knows which brokers handled this.

Di..it MIGHT have been the Malaysian Investors...they appear to be very supportive to NML. According to Healy, the big investors are happy...

Andy
The deal is reported in the RNS -

"The Company also announces that it has placed 48,608,331 shares to raise
GB662,000 (41 million shares @ 1.1p and 7,608,331 million @ 2.77p) to provide
working capital for its exploration programme in Angola. It is expected that
these shares will be admitted to AIM on 4 November 2005."

The only reason that makes sense to me for hte two-tier price, is new placees wanting to buy at par, whilst the supplicants paid a premium to show food faith and to give then fewer shares per 1 paid. What else fits the facts - that they each paid a pro rata proportion ofthe two prices - why - just adjust it to a different single price?

Any other explanations from the experts?

sd

SD,

I know, but I can't fathom the difference in price.

Takahe's view that some people in Malaysia happily paid nearly three times more than the market price, and the other placees does not make sense.

They may be risk takers in the orient, but they're also shrewd, and certainly not charitable institutions!

It is not my VIEW...nothing as definite. I said MIGHT. As big holders already ,they are the only group I can think of that would stump up more money.
I don't see that it matters where the money came from, anyway. He's got it.
I hope he uses it wisely.

Takahe - it matters to me to know what pressure had to be exerted on new investors to come on board, as opposed to embarking willingly as investors on this less than proven enterprise.

sd

takahe,

I don't think there's even a chance that anyone MIGHT have paid three times market price for any placing shares!


SD,

I would like to know more about this deal too, it needs explaining IMO.

Don't forget the 13 million shares issued to "clear expenses" have effectively covered money already spent, so some real dilution has occurred here too.

Andy - shares for services of the same order of magnitude as the issued share capital (13m ex. 165m) is a very expensive way of paying - unless you think the value oif each share is going to go down. What we don't know is what value was ascribed to each share (cost of services divided by 13 milion). Was it a good deal? If so, for which side of the trade?

Anyway whoever it as now has 8% of our company and its future growth - must have been some service!

sd

SD,

Yes I noticed the RNS failed to say what value had been ascribed to these shares!

They are, of course, a potential overhang, unless the recipients decide NML are worth investing in of course. The fact that paper was issued for debt may not support that belief, we will see.

Andy..obviously, no one would want to pay more than they had to ...but he got the money from somewhere.
I'm more interested in what is going to happen next.

takahe,

Well he has said Novemeber, so the clock is already ticking!

In a place such as Angola, that sort of timescale could prove to be challenging, but he may already be halfway down the road to a deal, so we shall see.