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90 day due diligence for the Kalengwa Processing Project coming to an end

lse:xtr

#1

We’ll soon learn weather Mr. Colin Bird has accepted all the terms agreed on the 15th July 2019 . With the average share price to be issued set at approx 0.83p /share being the volume weighted average share price for the month ending 30th June 2019 . We can expect some dilution if the deal goes through for the USD200,000 settlement fee but for another ever increasing revenue stream a dilution worth having in my mind .

Since Xtract Resources since this announcement has done a placing at 1.20p /share for £1,000,000 (before expenses) on 25th July 2019 . It’s not as if the market didn’t like what was going on at Xtract . Being cash positive with cash in the bank and an ever increasing revenue stream from our sub contractor Sino 2 and alluvial sales in Dubai . It suggests to me KPZ would prefer XTR shares as payment rather than the money . So would they be forward selling such a small amount of shares or hold until a re-rate made the deal worth far , far more . I’d say they hold them .

Recent share price drop may be to close Market Maker shorts , shake out the novices or just Market Makers creating a market . Volume suggests the later hence as we approach Friday I’ll be thinking about topping up much the same as others but knowing volume drives the SP quickly when is the time to buy more . Luckily I’ve 3 trading tranches already around this SP but with news due a few more will be added I’m sure . My long term hold shares certainly look healthy compared to only a few months ago … hum … glad I kept them intact and not traded out like some .


#2

Dilution is only dilutive when it doesn’t add value, typically when it’s done for “working capital”, etc. In this case the added value looks clear so if it does go ahead the company will be worth a great deal more, ergo no dilution!
TP