Thanks for the advice will re assess the situation with regards to AST.
I am defiantly holding in ECR, SC is same age as me very young for a CEO however he has lots of energy and drive, he is laying the correct foundations for this company. I can only see good happening here as of now.
Notice though they have already had a 7.5% implementation fee + they get 7.5% discount + 10% interest pa. Interesting that overall they get a good deal. However, the 7.5% discount makes it difficult to get immediate reward. Perhaps they are letting the 10% accumulate for a bit? I.e. the interest. Then they could wait for a small rise. Get the discount. Sell. Get the extra interest too. It kinda makes it more beneficial to hang on for a bit... Or maybe that's just my interpretation.
Yes. Quite agree. Bamboozled here too. Thought they just usually took shares at discount and sold straight off?? I notice this time though that they get less discount= difficult to make money because of spread....
Something made me look at the terms of the YA loan facility , part of which I have cut and pasted from the March 11th RNS....
The Company and the Investor have agreed to the drawdown by ECR of four further loan tranches (each a "Tranche") under the Facility, for a total principal amount of US$600,000. The aggregate net proceeds of the Tranches are expected to be US$555,000. The first of the Tranches (the "First Tranche"), in the amount of US$250,000, has been drawn down. The second Tranche, in the amount of US$150,000, will be drawn down on or about 1 April 2016; the third Tranche, in the amount of US$100,000, will be drawn down on or about 2 May 2016; and the fourth Tranche, in the amount of US$100,000, will be drawn down on or about 1 June 2016. The principal terms of the Facility, which are applicable to the Tranches, are described below.
Have the other tranches of loan been taken up by ECR? If so, do they need to be reported upon by RNS each time a tranche is taken or does the above RNS cover this? Ya are allowed to claim up to $250,000 worth of share per month, but have only claimed $100,000 worth to date and that was on the 31st March. They could have made another claim for more at the end of April, but have chosen not to do so.(yet).
Has the loans been taken up by ECR as outlined in the March 11th RNS and why has YA not taken up more shares in repayment. Are these linked to the new appointment of our Finance Director and has new funding been found?
I'm just putting the question out there. Please feel free to demolish it.
Interesting timing though. Bill came aboard when Danglay was all kicking off. But yes. No license yet??? Bill also turned up when they needed a bit of direction in terms of their targets PJ left... Surplus to requirement? New finance director... Just when SLM is cooking and feasibility is being done on avocados... I think this is significant. At this stage, they seem to have a good geological advisor in bill and snowden but a lot hinges now on getting the best deal for all parties concerned at minimal dilution and now we have a money man! With the monies involved here, we need this kind of expertise. We cannot afford to go in blind and we needed a good money man we could trust on our side. Perhaps also to evaluate potential options with SLM and avoca.
I think it is a good appointment. He certainly has experience of obtaining funding and has worked with SC before, so they should be off and running from the start. Having said that I have had bad experiences with two companies who changed their financial directors so I just hope it is third time lucky this time.
I can't help feeling there is something else going on in the background. Can't put my finger on it. Could be Argentina, a deal perhaps or the tax advantages of MGA. It could even be Danglay. Tiger Resources seem very slow on obtaining the exploration licence. Maybe they are cash strapped. Could they be a takeover target?
As I say, I just have that strange feeling. Still holding and haven't sold any.
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