Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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RNS Jan 6th
" The Zenith Loan is for an initial period of six months and may be extended by a further three months if completion of the Disposal (which, following approval at the General Meeting, would be conditional only upon Ministerial consent in the Republic of the Congo) has not occurred within that initial period"
So AAOG put a clause in to extend the loan another 3 months if disposal didn't occur within 6 months!
So in this statement the disposal is subject to Minister consent, as it was in Dec 27th RNS:
"The SPA is conditional ......on certain regulatory requirements in the Republic of the Congo including consent of the Minister of Hydrocarbons"
The raise today by Zen and reference to "operational matters " funding could have been for the loan payment, but could also be spin to their PI that some aspects are progressing on the disposal - when there is no evidence that matters are progressing.
If disposal doesn't occur before licence runs out and so no payment made by Zen for licence, Forum would have to step up to protect their investment - and the only reason they would fund the licence is if the disposal was cancelled and they retain all ownership.
AAOG remaining board probably don't care either way now - not a great positon to be in for Zenith.
"The Company has not received notice form Zenith that the £250k is available, they did not abide by our sneaky lawyer trick when the fire sale deal was set up to say this should be payable if disposal completes - or not.
We are now saying that it takes AAOG to re register as a multi shareholder before the loan will be granted – we never said this before as this is completely made up excuse we concocted to hide the fact that Zenith do not trust us after our deal with Forum and growing realisation that the disposal may not complete.
In any case, AAOG is not multi shareholder until disposal completes, so we are in a chicken and egg regulatory impasse with Congo oil Ministry, which based on experience we don’t see being resolved at any time soon.
Zenith have not made the £250k cash available and wont until disposal does complete - if at all - as they are in dire circumstances themselves, they just had to do a private placement for £935k , it appears just to keep the lights on, therefore their $25m bond is suspect and any chance of paying for Tilapia licence upto $2million in extreme doubt. They have not RNS the loan being made available or mirrored our RNS in any way to show their continuing interest in the Tilapia asset - this is because they now fully expect to not get their hands on the asset.
We don’t care about the disposal, the loan or any matter concerning Zenith or AAOG, as we have Forum to takeover and fund our expense account until we leave."