bvbfan said:When will CEO's learn the lessons of hedging, they make $150,000-300,000 a year yet can't seem to understand that you go broke when you suddenly can't deliver something you don't have or can produce.
Good ridence
No they weren't, and the old Croesus guys are all over in Ghana trying to make a mine work there, which they failed to do here.Hi Kennas, not exactly sure what you were trying to say with that last post...
The Steinepreis brothers were not involved with Croesus prior to the recapitalisation.....Whilst the share price has dropped since the recap I don't think they've done a particularly bad job, considering they have secured this deal with APEX.
But if CDT does have some of the guys that were involved with CRS pre-recapilisation, I would either do a lot of research or give it a very very wide berth.
Apex Minerals NL (ASX: AXM) and Mark Creasy today announce that they will spin off their prospective WA nickel assets into Croesus Mining NL (ASX: CRS), creating a new focused exploration company.
Croesus will undertake a capital raising of between $5 million to $7 million, its board will be restructured, and its name will be changed to Sirius Resources NL to reflect its new direction.
The new company will house prospective exploration acreage in WA’s rich nickel sulphide belt, which hosts world-class mines such as BHP Billiton’s Leinster and Mount Keith projects, Xstrata’s Cosmos and Prospero deposits and Norilsk Nickel’s Waterloo deposit.
Under an agreement struck with well-known prospector Mark Creasy, Croesus will also give shareholders exposure to large areas of WA nickel and base metal exploration territory strategically accumulated by Creasy over several years.
Croesus will raise up to $7 million through a private placement at 0.85 cents to sophisticated investors who are clients of Blackwood Capital. The transaction will be subject to the approval of Croesus shareholders at a meeting to be held in approximately one month’s time.
In consideration for the transfer of its nickel assets, Apex will receive approximately 67 million Croesus shares and 600 million five year options with a strike price of 3 cents. Apex will also be reimbursed for past costs it has incurred.
Mark Creasy, and the vendor entities controlled by him (Creasy) will receive approximately 267 million Croesus shares as reimbursement for past exploration costs incurred on the properties and interests to be transferred to Croesus.
On the basis of a $7 million capital raising, Apex will have a 4% stake in Croesus rising to 27% on a fully diluted basis (assuming the subsequent exercise of the options), ensuring that shareholders in Apex stand to benefit from any success in Croesus’ extensive exploration program. Mark Creasy, who currently holds 45% of Croesus, will hold a 29% stake decreasing to
20% on a fully diluted basis.
Croesus will have access to Apex personnel and management expertise under a Service Agreement which will have the additional benefit of keeping its overheads low and ensuring that the group’s extensive knowledge of the region is fully exploited.
Under the terms of this Service Agreement, and to reflect its major stake in Croesus, Apex has nominated Mark Bennett as Managing Director and Steve Lowe (a Non-executive Director of Apex) as Non-executive Chairman of Croesus. Jeff Foster, an internationally recognised nickel expert, consultant and Associate Professor at the University of Tasmania, will also become a
Non-executive Director of Croesus.
Dr Bennett will retain his primary role as Apex’s Director of Geology and his focus on Croesus will be equivalent to that currently spent on Apex's nickel assets. He will be supported by members of Apex’s geological team, which comprises key former members of the highly successful LionOre Mining International exploration team responsible for the discovery of several nickel deposits. As well as giving Croesus access to their skills, the arrangement will
help spread both Croesus’ and Apex’s corporate overheads under the terms of the Service Agreement.
Apex Managing Director Mark Ashley said the decision to house the group’s nickel assets in a separate company would enable Apex to focus on its gold operation at Wiluna, which was now achieving its annualised production target of 120,000 ounces. The cash flow generated by the Wiluna project would underpin further gold exploration and resource definition drilling of known mineralization at the mine.
Mr Ashley said the transaction would also increase the prospects of exploration success on the nickel tenements because of the additional funding available and Croesus’ sole focus on achieving its goal of becoming a significant nickel producer.
“The creation of a new nickel and base metals explorer provides Apex shareholders with an opportunity to have an exposure to a fully-funded exploration program in some of the world’s most promising nickel regions while benefiting from the cash flow generated at Wiluna,” he said.
aussie86 or kennas, you guys still following CRS?
Have taken a small punt that something is going to happen now the lower placement is done and behind it.
I had some shares in croesus before everything went pear shapped. How would I go about traking them down - the were in my Etrade account then when they were no longer listed on the ASX they vanished and given the way things were i didn't expect to see them again - but with the restructuring and relisting I assume they're now worth something, not much, but something none the less.
Any help woudl be appreciated - I've tried checking with computershare but they said they have nothing registered (same thing they told me about some employee share plan shares that had been transferred into my name - which I later found with them)
Big Dog.
I think I managed to track mine down through computer share when they relisted, not sure though.
Before you go to too much effort do this calculation;
((# shares you held before recapitalisation)/15)*0.01.
That's how much your shares are worth now (today with sp @1c), the 1 for 15 that happened at recap combined with the drop in share price from ~27c to ~1c wiped out the value in most peoples holdings.
Unless you had a massive holding its probably not even worth the brokerage in selling.
As I mentioned the other day ***** involved, they generally perform strongly afterwards.
DYOR
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