Poll - Merger between Alliance Minerals Assets Limited and Tawana Resources

Previously I briefly talked about the merger between Alliance Minerals (SGX: 40F) and Tawana Resources (ASX: TAW) here.

For the merger to be a success, there also has to be 75% support on Tawana's end and 50% support on Alliance's end.

As I continue to monitor the sentiment about the merger, it got me curious as to the proportion between supporters and protester (especially from our aussie friends) and so I've decided to give polling a try above my post.

For folks visiting the mobile version of my blog, you will need to switch to the web version to see the poll.

So folks following this story, are you in support or are you against the merger?

Proposed Merger of Equals between Alliance Mineral and Tawana Resources

Announcements can be found here.

Key takeaway:

• Under the proposed merger of equals between Alliance Minerals (SGX: 40F) and Tawana Resources (ASX: TAW), Tawana will become a subsidary of Alliance Minerals, with proforma ownership split 51/49 between Alliance/Tawana shareholders.
•  The proforma Market Cap post-merger is expected to be ~A$446m and this will place the merged entity in the position of a Mid-Cap producer.
• Capital raising to take place.
• In an earlier news, 85% of non-Bald Hill assets such as Cowan will be spun off in a Spinco (no actual name yet), with ownership by existing Tawana shareholders. There will still be a 15% stake by Tawana thereafter prior to the merger. This also translates to the merged entity having ~7.5% stake in these assets.
• Mark Calderwood (Managing Director of Tawana) will be the Managing Director of the merged entity.
• Existing Tawana shareholders will receive 1.1 Alliance Mineral shares for every 1 Tawana share exchanged post-merger. Thereafter Tawana will delist.
• Alliance Mineral to look to listing on ASX as well.
• The merger is subject to an independent expert concluding the merger is in the best interest of Tawana shareholders.
• The merger, if successful, is scheduled to complete on October 2018.

My reaction:

 

The current reaction over at HotCopper forums seems mixed. Let's see what happens over there after a few days. If Tawana shares really plunges on resumption of trading, it could be a good opportunity to accumulate.

As an Alliance Mineral shareholder, this is a pleasant surprise, especially given that we will earn in ownership to the spun-off properties. I guess in a sense, this also answers my previous question about the business directions of Alliance Mineral going forward. Staying vested.

Previously I have talked specifically about Alliance Minerals here:

• Why I am bullish on Alliance Mineral Assets Limited
• Afterthoughts - Alliance Mineral's CEO getting sacked, and commencement of production

Disclaimer: The above should not be used as a decision to solicit buy/sell activity. Use all information at your own discretion and DYODD

Afterthoughts - Alliance Mineral's CEO getting sacked, and commencement of production

So as of 1st March 2018, the CEO of AMAL has been sacked. What do I think?

It's unfortunate for the CEO, what with the business being months away from finally generating revenue... but when key business partners and other substantial shareholders no longer wants to deal with the business as long as Pramoko remains the CEO? Not a hard decision to make. The sentiment in forums and the price movement suggests positivity.

How will it affects its ongoing business in the immediate term? Tawana is operating the mine, so nothing there, business as usual.

In the longer term, I am curious what will change going forward:

• Pramoko was looking to expand AMAL towards involvement downstream. This was something I am highly interested in. Would the CEO head towards the same direction? Or will he/she look to continual involvement upstream?
• Will the CEO be one of the substantial shareholders, or will they look to bring someone else from the outside?

 (Source: SGX, Announcement by AMAL and Tawana)

Production finally commenced, this is one of the key moments we have been waiting for! Next up would be delivery, ramping up production further, more resource upgrades, getting their maiden revenue (not counting Burwill's advance payment) from first shipment, commissioning the fines circuit and second DMS plant to further increase output, sales of tantalum concentrates etc. Thoughts of these makes me feel stoked, like a cat on catnip. :D

Disclaimer: These are my own personal view it should not be used as a decision to solicit buy/sell activity. Use all information at your own discretion and DYODD. I remain bullish and vested for the long-term.