Can ERM please get rid of EGO, page-7

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viney402

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31/10/14

18:15

Post #: 14218830
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Originally posted by Allyoops2 ↑

Hi Stumpytrunks
as a long time holder of EGO and a recent holder of EPW I can see some merit in what you say, BUT
if the top up was a maximum of 70% of purchase price I could support the proposal but it isn't. I refer to ann
dated 1st Sep.
under this mechanism the purchase price ultimately paid by ego will escalate by 70% of the percentage increase to sp until the loan is repaid. EG. If egos Sp rises by 100% them empire will make a top up payment of 70% equal to 70% of 16.34 million dollars. (Now 15.1 million dollars)
This deal has no maximum price so if the cr is done at around 0.005 cents and spikes to 2 cents upon an oil or gas discovery ego would be up for repayment of 15.1 million plus a top up of 42.28 million a total of 57.38 million. My question is how is ego to repay this loan as the proposed cr is barely sufficient for a couple of shallow drills such as charger or one deep drill. This is a realistic scenario as when ego has drilling success the daily share volume has in the past been 500 million to over 800 million. If this happens again 2 cents plus could well be achieved as when rgw1 was drlled the sp peaked at around 4.8cents per share. Recent anns have stated the rgw1 plant could be sold within a 2 year timeframe but until this occurs we will still be cash strapped.
I like the lateral thinking of the board but cannot see how we can support the current plan without a lot more information, remember with explorers nothing ever goes to timetable so access to funds to repay the loan leaving sufficient cash to further explore and develope assets would be essential, with maybe bank finance being an option for production.
ally

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Ally

That is a to the point representation of the feelings on the EGO thread

JW take note

Viney

EPW Price at posting: $1.82 Sentiment: None Disclosure: Not Held
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0 Great analysis

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Can ERM please get rid of EGO, page-7

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