Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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I see no reason why the Arbitrator won't rule in our favour, the key issue being how much we are awarded. We either then litigate to enforce settlement (assuming no 'voluntary' payment of the sum awarded) or we do a 'deal' with the major client for an immediate cash payment which avoids further time and costs for both parties. Might be an attractive option, for different reasons, for both parties? Should find out this week.....
Here’s hoping, Tarry - if we are awarded, say, ten million dollars, then this will hit five pence within days of those Benjamins hitting SML’s bank account.
Cummings really should not have shed his load from London to Durham.
An award is enforceable by the courts which, in the absence of payment, could instruct asset seizure. No-one is above the law. Unless the major client is run by .... Cummings.
Indeed - but awarded that amount to its being deposited in SML’s bank account are as far apart as the current Tory cabinet are from telling the truth.
Can't see how we can fail to be awarded at least the amount of the letter of intent ....$4m
I would imagine the bod would look to sell equity in LC in return for cash to buy equipment but we may not need that if we have a modest settlement from arbitration. We're claiming $21m and our market cap is £8m - even if we're awarded 25% of our claim you would expect to see that reflected in our share price.
We should find out this week Fira. Perhaps there is a get out clause in the contract we're not aware of but from what the BOD have said I can't really see how the Cobre client has a leg to stand on.
Even with no settlement if we go JV on Cobre reducing our expenditure and direct Cobre revenue to Redmoor we should be fine. It will just take a bit longer, unless we have a JV partner and free carry up for Redmoor too.
Agreed on cashflow Sammy. Cobre still expected to bring in $1.5m profit this year though without the major client and any arbitration or forfeited deposit.
Dilution the VOD stated that they would not seek to dilute shareholders and instead seek a joint venture at Leigh Creek to expedite the project.
Finally on the major client extenuating circumstances are fine and something you negotiate on. We were very reasonable on timescales. I seem to recall there being mention of environmental approvals being sought by the client? What you wouldn't expect is a letter of intent to increase / continue deliveries only to then renege on the whole contract. I'll keep an open mind on damages but I'd expect the magnetite payments (and deliveries) to be honoured as contracted.
?The major client debacle has been kicking around for two years now. I remember an LSE Natural Resources evening back in May 2018 when it was first mentioned. The problem is that we’ve not stopped spending since and that has now eventually caught up with us. Whilst we will probably be able to scrape enough funds together to pay the remaining £900k balance for Redmoor on a revised payment schedule over say the next 6 or 9 months, unfortunately there is nothing else left in the pot to either complete the PFS at Redmoor or more importantly re-commence production at LCCM to generate a second income stream. ?
?The bottom line is that if we get a decent arbitration outcome and we can get the money quickly then we’ll be ok. However if we don’t then we’re likely to face dilution of some description if we want to progress our other two key assets quickly. Obviously if we delay progress our other projects then no dilution will be needed.?
?As someone said the other day there’s always two sides to a dispute and she might have some genuine extenuating circumstances for example if the Magnetite was due to be exported and changes in Legislation and/or excises have made this impossible? Just saying - obviously hope this is not the case. DYOR. All in my own opinion. GLA ?