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While it is confident it will be able to raise the funds needed, Cradle Arc said it would be highly likely that it would become insolvent if unsuccessful.. So it’s binary.
Looks like a bit of a stitch up from creditors. Let’s hope they can pull something out of the bag.
Kevin van Wouw, CEO of Cradle Arc, commented: "The Company will co-operate with the Provisional Judicial Manager in order to seek the best financing and operational plan for Leboam, to resolve the group's current financial difficulties. "Following from the impasse between Fujax and the Secured Lenders to the project, where the working capital facility agreed was not completed and which has directly led to this situation, we have commenced discussions with various existing and potential funders in order to attempt to secure a suitable financing solution for the project going forward.
Whatever it is I'm not holding much hope.
It doesn't sound good.
How much funding do we need? Will CRA be able to secure funding or fold. We wait and see how it all plans out. Boom or Bust.
As set out in note 4 to the Company's annual report and accounts for the year ended 31 December 2017, the Company had a VAT receivable of £546,406 and there is an ongoing inquiry by HMRC regarding the Company's VAT registration. The Directors' remain confident that the VAT registration in place for the Company is fully compliant and are confident that a repayment of VAT to the Company will become due in the near term. Further announcements regarding the Company's progress on these matters will be made as and when appropriate. Kevin van Wouw, CEO of Cradle Arc, commented: "The Company will co-operate with the Provisional Judicial Manager in order to seek the best financing and operational plan for Leboam, to resolve the group's current financial difficulties. "Following from the impasse between Fujax and the Secured Lenders to the project, where the working capital facility agreed was not completed and which has directly led to this situation, we have commenced discussions with various existing and potential funders in order to attempt to secure a suitable financing solution for the project going forward. "The Company has made significant investment in this project, and as such we will continue to preserve the value where possible by following these processes to their conclusion."
Provisional Judicial Management Order of Leboam Holdings (Proprietary) Ltd Cradle Arc (AIM: CRA), the African focused base and precious metals exploration and production company, announces that the Botswana High Court has issued a Provisional Judicial Management Order (the "Order") for its 60 per cent. owned subsidiary, Leboam Holdings (Proprietary) Ltd ("Leboam"), the holding company of the Mowana Copper Mine in Botswana ("Mowana" or the "Mine"). The Order became effective on 18 December 2018. In terms of the Order, Mr John Hinchcliffe, an accredited and registered Chartered Accountant in Botswana has now been appointed as the Provisional Judicial Manager. Pursuant to the terms of the Order, with effect from 18 December 2018, the Provisional Judicial Manager shall: · Secure and preserve the assets of Leboam. · Prevent the mismanagement of Leboam. · Ensure Leboam is able to meet its obligations. · Do all things necessary to preserve the interests of the members and creditors of Leboam. The Provisional Judicial Manager is required to file a report regarding the financial position of Leboam to a meeting of creditors of the company, to be convened before the Master of the High Court, by no later than 18 February 2019. Pursuant to the terms of the Order, Leboam has until 21 February 2019 to submit its answering affidavit, or business plan going forward following the meeting of the creditors of Leboam. The matter will thus be set down for hearing on 28 February 2019 for the Court to determine if Leboam be discharged from Provisional Judicial Management or make any other order it deems fit. Further to its announcement of 18 December 2018, the Company shall transfer its Provisional Liquidation application to the Gaborone High Court to be heard as one on 28 February 2019. The Company has commenced discussions with various existing and potential funders in order to find a solution to the financing required for Leboam and the future operations of the project. There can be no guarantee that the Company will be able to secure the necessary financing in order to support a credible business plan to the Botswana High Court by 21 February 2019. In addition, as well as needing to raise funds for Leboam as set out above, the Company needs to raise funds to finance its corporate overheads and general administration costs, as well as to maintain and/or develop its other assets. Whilst the Board is confident it will be able to raise the required funds, should such funds not be forthcoming in the near term, the Board believes that it is highly likely that the Company would become insolvent, and insolvency proceedings, such as administration or liquidation, will be commenced in respect of the Company. As set out in note 4 to the Company's annual report and accounts for the year ended 31 December 2017, the Company had a VAT receivable of £546,406 and there is an
Sell from 4.96% to 3.89%
RNS: BUY OR SELL
Cookiecrew, I see you still have an interest here. Not been on this board for quite a while and only written off a few pounds here, luckily. Wonder if there is any real chance of a resurrection? After all, it is Botswana, there is feasible material to be mined, there is always hope, LOL!
Merry Christmas.
Holdings in company ???
I have a pragmatic approach.
My investment here is currently by far my largest holding.
My other holdings are on average down 35% .
However, there are more important things in life to worry about.
My mother-in-law had a heart attack on Sunday, and thank fully she was able to have an emergency operation.
It happened at the right place at the right time and hopefully she should be out in time for Christmas.
Always put family and health before wealth.
As for CRA - Take the disappointment now, I have written off my investment.
Start the new year with fresh eyes and a clear head, and if by chance it does come good I will see the 10p SP after two successful quarters as a massive bonus to take us all on holiday in the summer of 2019.
Have a wonderful Christmas and don't let the buggers get you down.
GLA, NAI, DYOR, & ATJ
I think that there are good grounds for aligned interests
A poor outcome will damage Board reputations, particularly Roy (Chair) and Kevin's (CEO), and may make it hard to re-fund any repackaging of Mowana by the same team, moreso if its perceived to follow unethical behaviour, with two sets of investors already having had poor outcomes (ALO, CRA)
There were earlier comments about foul play, which may still apply, but I think and hope that the Board is fully committed and see this as a last chance to crack this for themselves also also - provisionally, there's a big win only months away and for Kevin success could unlock a world of future projects or early retirement
You wouldn't call the situation optimal but if the Board is fully committed then we have the best chance. Let's hope that they are at their most persuasive and that lenders saw the 'repairs already done' part of today's update!
Agreed mate, Mowana is our core project with potential for 14 years of production at 21k tonnes annually with DMS, over 1.3m tonnes of copper resource. Mowana is a great asset and profits over the time will be many multiples of total current debts if operated professionally..Fujax and ZCI knows this very well so they are trying to take over..see what Kevin and Roy come up with.
still have the Matala Gold project which we've been trying to flog for the past year, unsuccessfully I may add. Given the farce over the past year, CRA will be worthless without Mowana as no one in their right minds will offer a loan to develop the gold project. Our current JV's are a sham as nothing will come from them for at least 3-4 years, and even then it will only be 5% royalty fees.
A big fat DOH! FFS sorry guys, clicked on a pinned tweet from Align but didn't see the date Dec 17!!! That's what running around after three kids does before getting to work and then posting something. Think I'll quietly slip away and slap myself for being a t*t!
Sorry guys
Get with the program!!!
That particular NEWS is over a year old.
Lets hope so he has something up his sleeve as risk of Mowana folding is growing rapidly now..Mowana isn't our only project so CRA will still be around whatever happens to Mowana..i reckon Mowana will get one more chance if they have investor ready on side lines..lets see
https://www.mining-journal.com/profit-amp-loss/news/1353326/cradle-arc-calls-in-liquidators
"If Cradle Arc's provisional liquidation application is accepted, Leboam's assets will be taken over by an administrator but not sold.
A winding-up order can be made after the provisional liquidation order is in place, and this would mean Cradle Arc shareholders are left with nothing."
Align Research
"Cradle Arc (formerly Alecto Minerals) – 10p (post consolidation re-list price)
Cradle Arc (formerly Alecto Minerals) has been suspended for several months now. We expect the company to return to the market in the first half of January and will be releasing a full coverage note on the stock at this point.
At the time of suspension the company was refocusing around the acquisition of the Mowana copper mine in Botswana and which has now completed. We see Botswana as one of the most stable and investment worthy regions on the African continent and view Cradle Arc’s COO Mark Jones in high regard. Combined with the fact that the Mowana mine project has had over $155m spent on it and it is actually producing we see the anticipated re-list level as providing copious amounts of upside for new investors.
We will update more thoroughly on this investment opportunity post the re-list and our full coverage note release but flag this imminent return to the market to our followers as one of our top picks for 2018."
I’m waiting for Roy Pitchford to come up with some kind of finance package ....
He’s well connected and I believe that’s why they brought him in board
See what courts say on this as CRA is opposing judicial management to keep their control on this I guess. This is very likely to end up with provisional liquidators now as both parties seems be happy with that.
Kevin seems to suggest its not dead yet so lets see...still some hopes here imo.
No hope from this one. Same old, same old again. keep out of Africa and mining stocks. Wish I had!
Cradle Arc plays for time at Mowana as it seeks a sustainable funding solution.
https://www.proactiveinvestors.co.uk/companies/news/211378/cradle-arc-plays-for-time-at-mowana-as-it-seeks-a-sustainable-funding-solution-211378.html
An application has been made to the Botswana High Court for Cradle Arc's 60% owned subsidiary, Leboam Holdings, to be placed into provisional liquidation as parallel talks on an alternative funding arrangement continue.
Quick research suggests this will allow Leboam to restructure its debt, whilst offering temporary protection against any legal proceedings fronted by debt holders such as convertible loan notes, which are due at year-end.