Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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"The overall structure of the farm-out as set out below remains"
- It would appear from this statement, that not.
I would hazard a guess other parties or bond holders will stump up the loan and benefit from the coupon or interest. Given GIEK were not taking a stake as such, and the rest are in it for services rendered.
Ps your bang on
I wonder if / how all this affects the divvying up of Barryoe. PVR and LOGP between them farmed down 50% of the field. That was going to be split between SpotOn, the consortium members and the bond purchasers. I don't recall that GIEK were getting anything other than interest payments on their bit. So if the consortium + bond are now expected to come up with 25% more funds (100% of development instead of 80%) would they be expecting a bigger slice of the pie? Not clear whether GIEK would be completely out of the picture but if so, might the other parties now want 62.5% instead of 50%?
You are completely right 1Cagney. I suppose the increasing oil price and knowledge that oil and gas will play a part in the energy needs of Ireland for the duration of the Barryroe field is nice back round music. Would sound even nicer of course if funding was in place and drilling was due to start this year. Hopefully we will hear something soon, as discussions are well advanced. Looking at it more closely, GIEK have pulled out, but the remaining consortium members which make up 80% of the funding are still in place. So hopefully they will take up the slack. I wonder is there a possibility of another investor coming on board? Anyway it is all wishful thinking on my part. Interesting to see Oil Man Jim repeating his assertion that Spoton Energy are a £1 company, implying they are some sort of scam company. Find out soon enough I suppose. Here is a relevant part of the RNS:
However, the financing structure has had to be adjusted to reflect the fact
that GIEK is unable to participate in the Barryroe funding consortium in the form originally proposed.
GIEK’s original commitment was for c. 20% of the overall funding. An alternative funding structure
has been proposed by SpotOn involving an increased contribution to the financing by the
Consortium and the Bond Investors. Discussions to secure this increased commitment are well
advanced.
Except Raven, the article is not significant (sorry Battle). The only significant issue right now is Spoton coming up with $166m, otherwise they're as good as the previous suitors. It should be said however that they would have a better chance of success given the current oil price. However on the basis of the recent RNS, that is by no means a certainty, and the question remains if they cannot get a chunk of export credit from Norway, what separates them from the other crowd.