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VAU - Vault Minerals

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Hi Guys, interesting discussion going on here. My view is that not only have management done a great job in getting the project to the present stage, in particular the permitting (that was in fact the only permit issued in the Phils in the 12 month period), but a further major milestone has been to get such strong institutional interest and on board. While this has not translated into a booming SP in the short term, surely the strong interest and money shown should mean that as smaller shareholders, we are now in very good company.
Bill, I sense that you are trying to somehow prove a point with your activity, but do not actually understand what your point is. If the SP weakens back to 17 cents, does that solve your issue? Then you can simply buy in further without all this additional expenditure, ie postage etc. Or are you simply being antagonistic for the sake of it? If you have another agenda, then please declare it.AB
 
I appreciate your preparedness to answer part of my questions. I can confirm that I am not party to any of these placements, neither the Petra one last year, nor either of the current placements.

I was not happy with the arrangements for the share placements as I believed the quantum was excessive, but accept the pricing, and I have made those points a number of times in various posts. But at the same time in RED having made its call, and considering all the issues that relate to it (and I have outlined many of those points in previous ASF posts over the past weeks since the financing arrangements were made public) I believe that it is in my best interests as a shareholder to vote YES for Resolution 10. And to be honest unless you have a different agenda (as alluded to by Anderbond), then I can't see how you will be better off with your investment in RED if Resolution 10 was to fail!

I agree with Anderbond that there have been many successes with RED management at Siana in the past couple of years, and for that I remain confident that they can continue to add value through their various efforts going forward. And if Mapawa adds to that value then we will be even better off, but I believe its better to get the gold out of the ground for our value to go up, not leave it in the ground to talk about!

Now its within the 48 hours of the AGM so no more proxies can be accepted, so if anyone were to change their minds on the voting, then you must vote in person at the AGM after calling a poll.
 
Hi Guys,
This is my first post so I hope this information is relevant. Have been investing in shares for a few years now and still consider myself a novice. Have held some RED shares for about 6 months now. On Tuesday night while having dinner I got a phone call from what sounded like a telemarketing company who said they were representing RED 5. They wanted to know if I had received tha AGM documentation. Once I confirmed this they wanted an indication as to which way I would be voting for resolution 10 in particular. Told them I hadn't decided yet and wouldn't be at the meeting. Then they strongly suggested I fill out a proxy form and make sure it is returned by the 21st. This is the first time I have had any calls in relation to my shareholdings so makes me think management may be a bit nervous about the outcome.
 
It is my opinion that money spent on telemarketing companies to determine voting trends is misspent shareholders funds. Better spent digging and selling gold.
There might well be some placid shareholders as seen here but I can tell you from my feedback that there are some very angry ones as well.
To respond further to our questions Beatle, firstly shareholders have the right to reject dilution of their holdings and that right does not require that they be capable of running the company. Having said that, I would approach all shareholders with the offer of a share placement before selling discounted shares to institutions and some "selected" shareholders. I will take 2,000,000 at 17c so they are 1% of the way there.
 
Hi John, good to get your post.

There was a considerable dump towards the end of trading (I could almost see Bill's shares flowing lol!) - If that was the case, then thanks for that Bill, I have picked up some more today! Better get that RED flowing Anderbond, its about that time of day!

Each to their own, cheers, and now RED its time for you to start performing!
 
Hi Beatle and others, yes it is that time of the day/week when it is time to look deep into the glass of RED and think about the past week, but more particularly about the future. The sediment may well portent the future lol!
I have another example of a CR that can cause anguish. WPG went into trading halt yesterday on a close of 94c the day before. The CR is at 68c, a whopping discount! Sigh....such is the life of the small shareholder...BUT WITHOUT INSTITUTIONAL SUPPORT not much will actually happen despite the best laid plans as smaller shareholders simply do not have the horsepower!
Same with RED I think. So while it is always contentious with small shareholders to raise funds from institutions and sophisticated shareholders only(usually at a discount to recent SP), this is the way things work! As a small shareholder, if you don't like it, or dislike the approach taken by management, then the answer is obvious. One more point....there was much negative discussion about the earlier finance offer from DB. Nobody seemed to like that. But here we are with a completely different approach to finance the development of Siana plus have funds in hand to accelerate the drilling program and again there is much negative discussion. It seems that in reality the raising of an additional amount of US$25 m ( a smallish sum in the general scheme of things) has become the sticking point. While I too have some query on the way this occurred, in general I have trust in management to steer things along. Does this make me passive? I don't think so as I have in the past and will in the future visit the site to observe for myself the state of play and to also conduct ongoing discussions with both GE and CJ.
So RED fans(and others) I wish you an enjoyable weekend, and in particular Beatle some sleep. AB
 
Hi all.
I have to say that this discussion does make me worry about where things are heading in the future, after seeing what developed before and after the gfc. It seems that every decision made by shareholders is based purely on short term gain potential. While that's perfectly understandable nothing will change if no one stands up and tries. I commend mr pike for caring enough to go to the extents he has in trying to influence this vote. I have been convinced by the discussions that the yes vote was correct, but all along I felt that I had been railroaded by the company, and my decision finally was based on the short term outcome. It's interesting that many including you beatle seem to say this deal is not great for us retail holders but what can we do. Call me a doomsday pessimist but I can't help think eventually we will pay one way or another for this reckless throwing around ofshareholders money, both by red and in these discounted placements in general. Unless were lucky it seems the only people truly making a killing on the markets are the advisers and brokers who get offered these placements. The only risk seems to be ipo's where there is no previous history to refer to for the company.
Sorry to bang on but I wish I'd had the cahunas to stick with the no vote as I feel it would be the right thing to do. Anything else seems to be for personal short term gain, not for company benefit. It's sad that I'm the one worrying about company benefit, not the directors
 
Hi All, and yes Anderbond lets celebrate the weekend with a RED! (just can't get away from it!).

I agree with many of the points you raise Anderbond, many companies are trying to raise cash at the moment and have had to take big cuts in share price for those raisings to attract capital, RED is in the fortunate position to be able to seek funds from big insto's that surely will provide a solid outlook for the company, and its shareholders as Siana is developed.

Andrew, if we are fortunate to have Resolution 10 passed, my view is that the outlook will be very positive for us shareholders, RED will have certainty of funds to develop the Siana gold mine, and to carry on its exploration efforts at Mapawa, Siana and other targets about each MPSA! That exploration should result in a re-rating in RED share price as Siana will undoubtedly do in coming months (if not before!).

I wish all a great weekend, with fresh thoughts for new posts in the new week ahead, AND hopefully a positive outcome to the AGM Resolution next Tuesday! (I'm sick of discussing THAT Resolution!).
 
Yes Andrew,
and I vote NO because as you say, someone had to think for the company, not a quick $;
I am afraid the resolution will pass and I will probably make some $ there but it is sad for the company; is the extra money allocated to a board members special xmas gift? In any case, wait and see
 
In all this discussion about Resolution 10 we lost sight of RED's other main activity - I wonder what is happening on the Mapawa front.

Its been a while since we got some news about latest drilling results, it seems to me that its about time all those recent holes drilled will have assays available to be announced. I wouldn't be surprised to see some information about that announced maybe as soon as, or before, the AGM - of course also assuming there is some information to be sufficiently important to be announced.

And the interesting thing about Mapawa drilling is that its a big project with minimal impact of individual holes, the unfolding story doesn't have reliance on 1 individual drillhole, it will be a slowly evolving story, as each drillhole results either increase or decrease the potential gold inventory. Its the sort of story that should be watched fairly closely though, as after a while those individual holes may provide a good idea of how likely Mapawa will be the huge porphyry gold project that we hope for, or the fizzer that will dampen RED's next big thing!
 
I would think there is no way any announcement would come out before or even soon after the agm as everyone in the company and placement will want it as close to 17c to get the resolution thro. If an announcement comes out after agm they'll still cop abuse because any subsequent rise could have improved the cr terms. After the placement i wonder who will be left to push the price up as i assume many interested instos will already be in. You mentioned a while back Beatle that you knew of at least one insto that planned to take a fairly substancial position if finance was confirmed. Is that still the case?
Seems like rather than hoping there is something good at mapawa there had better be something good or we have been done good style. If it is a fizzer then I guess red will be just an also ran small gold producer with no big surprises left in the pipeline. Going by valuations of Beatle et al the best we can hope for is 30-40c with sienna alone.
 
big john i also got the call from the young lady last week - my holding is much below the heavies here! so they must be nervous as to how close it will be.

Resol 10 has moral hazard involved, carefully constructed no doubt by fine legal minds, and reason why i chose abstain.

For all the merits of the respective point of view on Resol 10, I still believe a concerted "protest" vote to the board will be to focus shareholders NO vote on the lesser Resolution 4, as i previously suggested....this would give them a truer picture as the general dissatisfaction that is latent in many Yes votes for Resol10, e,g, yours Beatle.
 
Hi Andrew, by the sounds of your comment you may have sold your stock? (lol!). I guess with the Mapawa information you may well be correct, its only going to be 2 days next week for us to see if it does come out. At some point they do have to report on Mapawa and prior to the AGM would be a suitable time to inform all at the meeting of the latest news - its what I would be aiming to do if I had a say! (who cares what a beatle has to say about anything!).
As far as the comment about there is now no reason for parties to buy shares cos they already got them at a discount (or words to that effect), I don't agree - for a start who would buy shares, particularly instos, that require regular revaluation of their portfolios if RED is going to remain stagnant over the coming months. Clearly they bought with an intent to get appreciation in their investment! I expect a re-rating at some point before the completion of Siana development, and subject to the funding not being an issue I can see that happening over coming months if not before! I didn't buy more shares yesterday thinking it was going down, so I have put my money where my mouth is (again and again and again, lol!).

Mgm1a, your point is well made about the protest vote, and I certainly thought long and hard about your suggestion before casting my vote. I agree entirely with your comment about the fine legal minds preparing the resolution, and I believe that it should definitely have been split into 2 separate resolutions. The route they chose certainly was more risky than they should have gone IMO!
 
Hi Beatle
No I haven't sold my stock, guess that's why I'm whingeing so much. If I sold out I wouldn't be posting- my name's not smity you know. I'm just a bit nervous that we might see a bit of a dump after r10 is passed, although in reality you would think there is little chance of it being below 17c by production. I just hope they're not keeping something from us cos if all is tmsrill on time and budget for first pour in April then you really have to wonder why they wanted the extra cash. As I said this is a big holding for me so hope all goes well.
 
Andrew, thanks for your clarification about your shares and concerns. Of course I also have a big holding and therefore watch it like a hawk. If I can say one thing about the board of RED, particularly the main players (eg Chairman, MD esp) each of whom I have known for a long period of time, and I have had personal dealings with the MD on a number of different fronts, they have both got very conservative views, and are very conscious of their responsibilities to inform the market as issues become more relevant. In fact, it is my view that their conservative outlook has been the very reason for them seeking such a large amount of extra cash. I agree with you that with the expectation of the first gold pour in April (or even May suits me fine!) that you would expect cash flow to become positive fairly quickly soon thereafter, but the future developments for RED might become accelerated due to the high cash holding. I don't believe the high cash holding is due to an expectation of a negative (or currently concealed negative!) outlook, but rather one covering all bases, and possibly with a view to a more positive outlook (possibly involving Mapawa, but also possibly covering some corporate activity in the general area!).

As a side note, in terms of the development of Siana, the metallurgical route established is very conventional, presenting no major likely risk to its development. With the pit at Siana, probably the only slightly different issues in the first year are the dewatering of a large amount of water, but that has been done a number of times in other projects, and with the water of high quality it is not the usual issue that other projects may have had to deal with. The pit design conforms to the usual requirements of batter slope angles based on geotechnical information, and perhaps the only slightly different aspect to the mining is the decision to use roadheaders in the underground based on the cuttability of ore characteristics, which will not be an issue for testing within the first few years of Siana development. If it becomes an issue then there are alternative means to mine the underground ore by more conventional mining methods for metalliferous mines.
 
the question that needs to be asked if red only managed to raise the amount of funds they originally sought after would this have seen us to gold poor, if yes then any further funds sought could have been raised at a much higher price and hence less dilution, not to mention that red will be in some good money once production , drilling mapawa could have been funded from some of the profits......i hope red dos'nt end up like another arx and gets so close to becoming a miner then stuffs it all up at the very end........the vote will be a dammed if you do and dammed if you don't.......my gut feeling is a yes vote the sp will slump and a no vote sp will still slump....
 
Hi Beatle
I appreciate your comments. I was just curious when you say the directors conservative nature is why they sought the extra funds. I got the impression that they never sought the extra funds, they just decided to take them because they were on the table when the offer was oversubscribed. They actually " sought" the original amount that was enough to complete sienna and Allow the quarantine of 20 million for accelerated development of mapawa. It sounded to me at that point that they had all bases covered. It seems like someone who was offered a credit limit raise on their card, and took it even though they don't apparently need it. Doesn't seem all that conservative. Conservative approach would be go with original proposal that appeared acceptable to shareholders and the market, and if we are truly about to produce then wait for the income. What is your estimate of the expected production in oz fitmr the first year, and assuming gold holds above $1300 per oz, what sort of income "should" we be seeing? Hope you don't mind the questions.
 
Fastbuck, its a fairly negative outlook you have got - I don't disagree with your point about the dilution, and I think most of us have got similar views on that but as you say damned if you do and damned if you don't.

But in regards to where RED is headed price wise, regardless of the vote, I disagree with your conclusion entirely, for the simple reason that the Siana valuation, whether we have got all the shares issued under the Resolution being approved or not, will still give a price around 38 cents (no dilution) and 33 cents (fully diluted), without any consideration of additional cash on hand and mapawa value (ie both valued at zero dollars).

Now, immediately after the AGM the price is unlikely to increase according to those valuations, but over the course of the coming months, as we get closer to the commissioning of Siana then it will likely move towards that valuation, of course based upon the gold price at that time. If commissioning comes on line anywhere near its forecast, in terms of time and spend, and in line with production forecasts, then RED should gradually move towards a premium above that underlying valuation. IF Mapawa results remain positive, and there is nothing at the moment not to expect that within a 6 month timeframe, that premium in the RED share price could become quite considerable, and hopefully moving towards MML's premium, but of course that also depends upon how RED begins to shape up with its future marketing.
 

Beatle why is that negative?
If RED are moving along nice and confident with what they're doing there would be no reason why another CR at a higher price couldn't be achieved.
It appears that RED management are worried they may not be able to secure another CR down the track.
 
Hi Jancha, good one, lol. I think your rhetorical question suggests that I am backing RED management on this latest CR and the Resolution - I suggest you re-read all that I have said regarding this topic which has filled up most posters on RED over the past few weeks, and of which I have been a fairly outspoken commentator of!
Notwithstanding the current share issues in train, RED share price remains likely to move higher based on the valuation of Siana alone. If you don't believe my valuation then that is up to you. I stand by my valuation!

I agree with you that it could be implied that RED management don't believe any future CR can be achieved at a higher share price, but if Resolution 10 is approved, Siana development is assured, and anyone selling now takes a risk of losing the likelihood of a re-rating in share price in the coming months. The insto's aren't aiming to take the cheap shares issued assuming they are govt bonds with a minimal return in those coming months, they clearly are seeking and expecting a re-rating as well.

Each to their own I guess ...
 
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