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Presumably the Oman Fund is trying to avoid picking up stock at 50p
London market strong this morning so perhaps the feeling is that OIA do not have a case.
It is terrible how one adverse decision can wreck a company. Did they upset the wrong person?
It was always slightly odd to have a Uranium mine in Spain....I can imagine planning in other less bureaucratic countries would be simpler (usually involving a bank transfer to a Swiss bank account). I feel sorry for genuine investors. Hopefully this isn't the end of the road/mine.
It’s disappointing that OIA are withdrawing, and the partnership has become conflict. Maybe they’ve tried unsuccessfully to re-negotiate the investment agreement with BKY, and to avoid the loan note converting are now trying to escape using every conceivable potential legal angle in proceedings, from misrep, through breach of contract and warranty, to repudiation and frustration. I guess it’ll become apparent whether they have a real case, or whether this is more desperation and/or tactics. Atm it’s hard to see how OIA, CSN or the government’s positions are tenable.
The SP may end up under 3p, seems SGRF have concluded the mine won’t be opening anytime soon.
I get the feeling that's what it is all about.
If OIA walks, then company will fold.
The Spanish government will get the resource for free.
The Spanish Government owe us the money then!
The only country has a clear, solid and non political driven energy strategy is China.
If BKY uranium mine is in China, imagine how much money investors be making by now?
Sad to see such a good resource gone to waste and so many of its investors lost so much hard earn cash.
I don't see how we , the world, can achieve CO2 targets without a period with increased nuclear capacity which then be run down again as the alternatives improve about which i have no doubt.
QF
The only hope is they can kick the can down the road until the next election but they will vote the socialist green donkeys in again.
So without fossil fuels how will Spain provide energy, solar, hydro and wind?
RIP Berkeley Energia
Re the MAC clause. They can be difficult to prove but in this case Its actually very easy to see what the material adverse change is. The mine was not approved which is the company’s sole asset.
This is a zero.
All cash will go to repaying the creditors.
RIP Spain.
OIA's timing is presumably because of this (which perhaps makes its action a bit suspect?):
On the 30 November 2021, The OIA Convertible Note which will automatically convert resulting in the increase in share capital of the same amount increasing net assets to $73,785,000 (based on the 30 June 2021 financial position)
GODURIA!!!
Anyone who have read the annual report in detail would have noted that
current liability is greater than current asset.
By definition, current liability are debt needed to be repay within 12 months period.
The AOI money was included in the liability calculation, the annual account was signed off by the company directors and approved by the company auditor, thus implied that the AOI money needed to be repay when requested.
I don't think the company has other option but to let AOI take its money and leave.
Any legal action is just a desperate attempt to save the business.
AIMO, please do your own research. Glad I sold my holding and avoided a bigger loss.
'have been frustrated, repudiated and/or an event of default has occurred.'
The Spanish Government has frustrated it so they can meet the costs, this is just a chain of events.
I listened to this interview the other week.
https://www.youtube.com/watch?v=yTJfeLoDJjc
Some very good points made.
So to install all these wind turbines and solar panels will take a lot of fossil fuel to mine the copper, silver and other metals. Then they have to be fabricated and manufactured plus oil for the plastics and all this has to be maintained.
If the Spanish are not careful they will be in an energy deficit and in now way to meet demand, they are on a course for self destruction. Or will they open coal fired electric stations before that happens?
It will presumably turn on the interpretation of (particularly) the termination provisions of the investment agreement and the law around repudiation and frustration. How closely and precisely did the investment agreement address the current situation?
Not good.
Inevitable really, the lights will go out.
I suspect that may be the point that BKY's solicitors will make, though the CSN's unfavourable report for the grant of the Authorisation for Construction may be an issue.
I wish BKY every success.
Hard to see what such a material adverse change might be? Nothing's been RNS'd or reported.
The main clause as mentioned earlier may be "SGRF may terminate if there is a breach of a representation or warranty or a *material adverse change* occurs in respect of the Company.
https://polaris.brighterir.com/public/berkeley_energia/news/rns/story/xjvqlnx
I put this on a thread in July…
…There is something in the agreement that the auditors have said they must class as a short term liability. That means there is something in the agreement that means it is fully repayable.
Oia will not continue to support the company as with this ruling, quite simply, there is no company. Just an spv with a possible legal claim against the Spanish government. Oia can leave their money in and watch it burn and be spent on legal fees to try bail out private retail accounts or they can say “actually that is my money. It was for mine construction and not legal fight. I will take it back please”. If that optionality is not in that investment agreement I will eat my hat.