Oromin Explorations Ltd OLEPF

3 Party Ownership Structure.........

[tony1969]

We have one fixed figure which is OLE's 136.6 million shares before options.  The problem is that we still have two variables. We have not been given a figure on the exact percentage of ownership or the amount of shares the other two parties ( Bendon and Badr) own.  This should have been provided by OLE management a long time ago so that us shareholders have a better idea of what will correspond to us in a buyout or merger. 

Multiple sources have said that Bendon has not kept up with their payments for a while now and we all know that Badr will get a minimal percentage or amount of shares in a buyout because of their deminishing investment percentage.  Considering these factors, I believe much less shares will be required to get a deal done.

Here is my guesstimate of a possible scenario.

OLE 136.6 million shares. That is a fact minus options which I have been told may be handled separately.

Bendon roughly 20% less or 110 million shares.  I have heard even less.

Badr a maximum of 10 million shares.  Again I have heard even less.

Total amount of shares in this speculative example is 256.6 million shares. It gives OLE a little over a 53% (136.6 / 256.6=53.2%) ownership in the project.

Per share examples at different buyout or merger totals using the 256.6 million shares and 53.2% ownership.

$350 million buyout/merger would yield a total of $186.2 million for OLE or $1.36 per share.

$400 million gives us $212.8 million or $1.56 per share.

$450 million gives us $239.4 million or $1.75 per share.

This total of 256.6 million shares may be too low and the 53.2% may be a bit high but I consider it very possible incorporating the above factors that I have mentioned above.

Lastly let us not forget the almost 19 million shares of OLE that TGZ owns and the stake the government will have in the project.  If it is TGZ ( I believe it will be ) then the total of shares in my speculative example drops to about 238 million shares. This would make it substantially less expensive for TGZ.

Even if both TGZ and OLE are taken out together or TGZ goes first this speculative example may be useful as far as determing who gets what as far as the 3 party OJVG.

Comments?

[comet52]

I'm trying to recall price/oz of recent buyouts in the sector.  I want to say they were in the $100/oz range?  Which is amazingly low if I'm recalling right.  The TSXV being in the pits doesn't help, it's a total buyer's market now.  Chet isn't much different from a lot of companies going into hibernation and waiting it out, difference is we have a big

[Goldfather]

Tony... i go along w/ your Share calculations. ... I have no idea where the b/o sp will be. My guess w/ RK was $1.70-..... but at this point, who knows. ....  % underground mining a factor, .... i do think Bendon seems to be the group making out the Best. They stopped funding , did pay $55 mil ,.... they could triple their invstmnt  in 8 yr span....

[tony1969]

Hey GF, the OJVG has spent just over $155 million since the project started.  If Bendon has only contributed around $55 million then it would be hard to justify them getting their 43.5% share.  If your guess is close to being correct then it would work out to be only 36% or $55 million divided by $155 million.  Badr does not count in the equation because they have not contibuted any

[hoosier1]

Whereas I understand where this thread is attempting to get... It is not being done correctly..IMO According to all I have heard... the written agreement among OLE, Bendon, & Badr has not changed.  The three are partners in OJVG with the understood breakout of 43.5%; 43.5%; 13% OLE is the only public traded company.  All of us shareholders ONLY own OLE stock.  Bendon &

[Goldfather]

Ok Just  guessing  :  I think it's :  10% Senegal Gov- ,  50% Ojvg-,  37% Bendon-,  3% Badr..... lets not jinx it .... or all  could be irrelevant.

[tony1969]

Hoosier, I think it is as simple as this.  If Bendon has not kept up with their agreement to fund 50% of the operation then they will not be entitled to their 43.5% that was stated in the agreement.  I cannot see why you do not agree with or understand this.  Bendon has apparently not held up their part of the funding therefore they will get less of a percentage than OLE.&

[SPACEDOC]

This post has been removed in accordance with Community Policy

[hoosier1]

It's Contract Law.... the % is whatever the agreement says it is.  Unless this agreement is altered with all parties in agreement then it stand as is... or unless it is ajudicated in the courts (per space's reference) My argument isn't with the % - a higher % of OLE is better, yeah... but it is what it is..per the agreement or even a new agreement.  What I don't get is

[tony1969]

The agreement will be altered (it probably already has been) because Bendon has apparently not kept up with their payments.  Bendon's apparent recent lack of funding has been mentioned here multiple times in the past.  Why would it be so difficult to alter an agreement if all parties agree?  Assigning shares to Bendon and Badr is just another way (example) of guessing on

[hoosier1]

OK... I don't understand that... Isn't it just easier to take the b/o price and multiply it by OLE's %... then divide that by the actual number of shares OLE has? to get the $/share?  Hell-of a lot simpler... and more accurate. Re the agreement... if it has been altered and not reported, then OLE is a material breach of their fiduciary responsibilities to their shareholders &

[tony1969]

Yes hoosier so far it is only a rumor.  It would be a material event and I thought the same as far as them having to report it.  If in fact they do have an amended agreement as far as percentage ownership then they may make it public before a deal is announced.  If rumors are true then it would be a positive for retail holders.  On the other hand 

[Roro1]

All points well said h1. Great post.

[hoosier1]

tony... OLE is required to file a FS every three months, at the end of their established fiscal Q, even as an OTC stock... their last filing was Aug 31, 2012... all of them can be found on Oromin's website The quote I referenced came from that FS h1

[tony1969]

Thanks hoosier. I thought you meent feas study not financial statement.