Australian (ASX) Stock Market Forum

RAU - Republic Gold

Jump to new
Chasero said:
Just wondering, the cheapest a stock can go is 0.001?

I've never seen shares this low.
Click to expand...

I think the ASX should wake up to the problems of shares reaching such low levels. The stock traded recently at 0.1c bid - 0.2c ask, quite ridiculous, and brings something into disrepute here.

All it needs is to let stocks trading below 1c trade in 0.01c increments; this is done in some other markets, UK AIM for instance.
 
noirua said:
I think the ASX should wake up to the problems of shares reaching such low levels. The stock traded recently at 0.1c bid - 0.2c ask, quite ridiculous, and brings something into disrepute here.

All it needs is to let stocks trading below 1c trade in 0.01c increments; this is done in some other markets, UK AIM for instance.
Click to expand...

So everyone buying in at 0.001 is basically break even or 100% profit? That's weird.

This is the penny of all pennies I guess, I'll just watch.
 
Republic Gold Limited RAU is Australia's lowest quoted stock having trade between 0.1c and 0.3c a share in recent months. - currently 0.2c and market cap A$6.8 million.

Basically, the company can't borrow the $136 million needed to develop the Amayapampa Gold Mine in Bolivia.

RAU have completed a preliminary non-binding agreement to sell Amayapampa. It is not known who the company is or what is involved in the purchase.

Guess is that Bolivia's State controlled mining company is involved in the bid. Top estimate so far is at $35 million but more realistic views see a figure far lower than that.

Yes, 'you pays your money and takes your chance', that is, if you want to gamble.
 
RAU have proposed a reverse-split of 1 for 20. They appear to think they will now get their US$5.4m worth of Lion Gold of Singapore stock: downside is that this may not happen and Lion shares have fallen.

Company plans, it is thought, to raise cash fairly shortly. Odds are that Republic will survive with a mammoth loss in shareholder value.
 
noirua said:
RAU have proposed a reverse-split of 1 for 20. They appear to think they will now get their US$5.4m worth of Lion Gold of Singapore stock: downside is that this may not happen and Lion shares have fallen.

Company plans, it is thought, to raise cash fairly shortly. Odds are that Republic will survive with a mammoth loss in shareholder value.
Click to expand...
http://www.republicgold.com.au/docu...mpletion of sale to Liongold Corp 12Dec12.pdf

Republic Gold Ltd
http://www.republicgold.com.au/

Now Republic will get their payment in Lion Gold shares although some will be held in escrow for 3 years, a blip, a problem, an ann is expected soon as Lion Gold are insistent.
Escrow amount is US$1.566m in Lion Gold shares.
Loan amount increased to US$1.97m approx owing to Lion Gold plus interest which comes out of the US$7m offer price. ( US$5.03m will be paid to Republic Gold -- 6,481,757 shares in Lion Gold will be issued to RAU -- 2,017,752 held in escrow [conversion rate S$1.003 per share])



LionGold Share Price Chart | A78.SI - Yahoo! UK & Ireland Finance
http://uk.finance.yahoo.com/echarts...n;ohlcvalues=0;logscale=off;source=undefined;
 
The interesting upshot now is that that Republic Gold RAU have enough financing for their current exploration campaign in Mozambique and all liabilities are cleared with Lion Gold. They have $1.9m in Lion Gold shares that can be sold for any future financing. The Mozambique prospect was negotiated at the bottom of the market.

The issue of two free options for every RAU share is priced at 1c and 2.5c for future conversion - very interesting with Republic's closing price at 1.4c.

A micro-cap goldie priced below its 1.9m Lion Gold shareholding with no value for cash held and new Mozambique assets.

Needs your perusal, me thinks.
 
noirua said:
The interesting upshot now is that that Republic Gold RAU have enough financing for their current exploration campaign in Mozambique and all liabilities are cleared with Lion Gold. They have $1.9m in Lion Gold shares that can be sold for any future financing. The Mozambique prospect was negotiated at the bottom of the market.

The issue of two free options for every RAU share is priced at 1c and 2.5c for future conversion - very interesting with Republic's closing price at 1.4c.

A micro-cap goldie priced below its 1.9m Lion Gold shareholding with no value for cash held and new Mozambique assets.

Needs your perusal, me thinks.
Click to expand...


What does it mean for the issued option? How should we use that? And should we sell or hold that? I am Little confused.
 
wallishking said:
What does it mean for the issued option? How should we use that? And should we sell or hold that? I am Little confused.
Click to expand...

The 191,689,857 options are due to convert by 31st October 2013 and would, if converted, be worth A$1,916,985 much needed for continued diamond drilling that is taking place right now.
Gold is not the in commodity these days and all-in-costs need to be well below $1,000 per oz with the bear factors on futures coming out of the United States. The bombed out Aussie goldies does not auger well - unless this is a true bottom for the sector?
 
Top