LONDON (AFX) - Chaco Resources PLC said it is proposing the reverse takeover
of two Paraguayan companies -- Amerisur SA and Bohemia SA -- from Candey SA and
Daniel Sztern in exchange for 27,322,404 new ordinary shares in the company.
It also plans to raise up to 750,000 stg before expenses in a placing of
36,585,365 new ordinary shares.
The company's shares were suspended on Sept 3 and it said it expects this to
be lifted today. It has called an EGM for Nov 15 to approve the acquisition and
placing plans.
Amerisur holds two oil and gas prospecting permits in Paraguay and is the
registered applicant for exploration and exploitation concession contracts over
the same permit areas. Bohemia holds registered applications for an oil and gas
prospecting permit in Paraguay and for an exploration and exploitation
concession contract over the same area.
The exploration areas covered by these three applications comprise a total of
approximately 48,000 square kilometres of the Curypayty and Parana Basins.
Chaco said these basins extend respectively into Bolivia and Brazil, where
commercial oil and gas production has been established for many years from
similar geological sections.

That falls into place nicely. We've had the delay for the placing finalisation. Now that is fully completed I assume the trip to S America is to show the documentation to the authorities there, gather round a table and sign the papers.

I expect the RNS is written and ready to be released as soon as pen hits paper and the deal is sealed.

MPH agree with you. sp has held well until the last few minutes. Reckon that is going to be very temporary, perhaps an MM trying to shake out some sellers to grab stock. With WDBM still high on the bid, and with them being insiders to this deal, the small dip just recently means nothing in my view.

Sharesure, with the news so close they are going to try and give it a little shake. My guess is they won't dare do it too much for fear that they will hit a swathe of buy orders sitting around the 8p level. They do not want to be net short on their books with the risk that the rns could pop at anytime. One thing's for sure I am keeping my full position, you can't risk not being fully in with what we all know.

ADDED:
Incidentally I fully expect this news pre AGM.
If I were on the Chaco board I would not want to be subject to shareholder questions about the Colombia project with nothing official released to the market. Depending on the attendees it could make for the meeting from hell! One would need to be SO careful about what was said so as not to break any FSA rules if the RNS hadn't yet been released.
Far better if the news was out in the open so it could be discussed openly and freely.

300k MM buy just printed, say no more gentlemen.

MPH was that MM buy WDBM by any chance????!!!

I`ve just bought a few more ,which is normally the kiss of death.
DB66

Dough boys in - that means I am out - only joking of course - I am waiting pensively for this RNS

Baza

Sharesure, there's no way of telling unfortunately. However there are currently 2 Market Makers at high bid keen to buy. WDBM and SCAP so take your pick! we all know who's been buying for weeks at every level!

How do you find out about MMs at high bid?

How do you find out about MMs at high bid?

blackdown, each individual Market Maker position is displayed on Level 2.

Thanks for the vote of confidence ! bhunt1910, you know me to well.
LOL
DB66

Thanks, MPH. This pm looks like a typical 'shake the tree' job. Well, they wont be buying any of my holding.
As for Dough Boy, maybe this one is going to work out different for you!

I hopes so Sharesure! if it does the first round is on me!
DB66

Been away for a couple of weeks and didn't get time to make a decision before I went when sp required 9p to buy. Fallen whilst you wait but not by much.
Is it a given that a deal has been done and if so why is sp not higher?
Are you still convinced that placement won't be at a discount?
Only playing devils advocate for thoughts whilst I get my decision sorted.

andysmith, I'm still watching from the side lines. I can't see the "certainty" that a deal is just about to be announced as any more than a 50/50 chance, with greatest respect to sharesure and other posters on here. If it was so certain, the SP would be higher; if not certain, then it's not certain, which makes me not certain.

Assuming the deal is there, my second problem is that I don't believe CHP will be able to buy into a JV that is so far down the line towards production as has been assumed here - much more like an exploration phase turning into a development phase at best - so plenty more cash to be raised, gives plenty more, less risky opportunities to enter than currently (even if higher SP, the risk/reward would be better balanced IMHO).

I am no basher, as you know from other threads, but even if I am totally wrong, and the SP rockets skywards on an RNS tomorrow, I will have been true to my own analysis, which is just as important as doing ones own research in this game. My oppposing view is what makes a market, after all.

Interested as ever to hear what you decide.

good luck to all holders

sd

Stockdog, well said, stick to your own strategy/comfort zone.

Appreciate those thoughts SD as I do those of Sharesure and others enthused about CHP. Struggling to get my head around why if the deal is done is the sp not already >10p and on the way to 20p and why would placement be at a premium to todays price?

SD, also agree with sticking by your own analysis although my own current analysis on SEO has upset a few as it did when I ejected from MMG at 270p.
Hope I'm not proved right on SEO but another 4% gone today and 15p soon IMO.
With CHP I'm very tempted but the nagging question above is keeping me out.
Good luck to those in who believe in CHP and hope you make loads of dosh even if I dally around and miss it.

andy

Two possible answers to those questions

Although we all know that the market is a sieve and most deals are known about days before official release, perhaps on this occasion the news is being kept tight. It may well be of course because the deal isn't yet in the bag, or bacause the deal is being signed overseas that the rumour telegraph is having trouble picking up confirmation.

As far as the funding is concerned, who is to say that the cash will be raised in this country, again it could be overseas which would cause difficulties for the rumour brigade - possibly. There are precedents for raising capital at a premium, so it isn't unusual. Despite what sd says, my research indicates that the oil fields have already been surveyed and much of the infrastructure is already in place, hence the oil should flow a lot quicker than many might expect. That may be why the cash could be raised at a premium, very quick return on capital.

Mostly conjecture Andy, risky play, but could have a significant return.

all the best

pth