Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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One scenario could be a sale of the mine to another company which would pay off the creditors but leave probably nothing for shareholders. This would leave nothing to the majority shareholding director either so that makes it less likely - but wouldn't be surprised to see some sweetener for him, or even direct involvement in the buying company or consortium. So the phoenix rises from the ashes- just that we are the ashes, folks. AIM at its best.
Around £1m...this is from 1st August RNS..this was supposedly to save us from dilutions..
"Agreement for the Redemption of Convertible Loan Notes
The Company has reached agreement with the holders of, in aggregate, £1.275 million principal amount of Convertible Loan Notes issued in January 2017 and June 2017, to suspend their conversion rights and redeem all of the Convertible Loan Notes for cash payments of, in aggregate, £1.59 million, by way of staged and back-end weighted payments up to their scheduled maturity date of 31 December 2018."
How many CLNs were left to convert?
Yes I’ve tried them twice. Busy both times. The secretary said he’d ring back but very busy.
If they haven't been paid then probably wont get much service from them..i sent them email last week asking about situation with redemption of CLN's, but had no response mate...
I suggest one or two more ring. See if we can get a nugget out of them.
Charles ringing back
I’ll ring now mate.
Thanks NoMark, Anything you can share from your call with Tavistock?
Tavistock communications taking all calls regarding suspension.
I don't understand mention of insolvency at this stage....I really wonder if its scare tactic to bring all parties involved to the table to sort something out quickly by Kevin....mention of Insolvency wasn't really needed at this stage..
Another reason could be deadlines on those CLNs which we were told would be redeemed by paying off in cash as per 1st august rns...they will get shafted too...I cant see many parties walking out scratch free here to be honest..This was my first and probably now last africa based mining investment..sad state of affairs.
Everyone’s been shafted. What a total joke this company is. Us PI’s left in the cold for Christmas.
IF they have really sorted out most of the operational issues with that 2m loan from ceo's company + 360k from placing including full relining of mill...then there is a hope that Fujax may rethink...or somebody else may put some money in with another set of loan notes..like Jan/June 2017..it all depends on how good shape the plant is after repairs..In any case they need complete restructure of debts now if it gets a chance..
Cant really see any point
Anybody tried to contact the board? Tried but just ringing through
Hopefully this one will have a happier ending! You never know Fujax could have a change of heart when looking at losing everything, especially when CRA where so close to turning the corner! Fingers crossed for a positive outcome!
10/10 for your optimism mushty, I fear you missed out the important phrase about taking insolvency advice. My guess is that the outcome will be something along the lines of a prepack, meaning that we the poor ordinary share holders along with many trade creditors will get a few coppers (pardon the pun) in the pound of face value or more likely nothing whilst the revitalised, delisted, debt free company goes on it's merry way digging ore and making it's new owners very rich. But I may be very wrong, hopefully. Sadly this is AIM at the moment it's smarting, then sometime in the future one will come good and all is forgiven.
2nd RNS HOPE IT IS TEMPORARY TEMPORARY SUSPENSION OF TRADING ON AIM CRADLE ARC PLC At the request of the Company trading on AIM for the under-mentioned securities has been temporarily suspended from 06/12/2018 4:50pm, pending clarification of its financial position.
Following 01.11.2018 RNS, I wonder what James Turnbull could bring to this situation or whether or not events at his influence. Wouw stated: ‘’We firmly believe that James will provide valuable assistance with the Company's future development, particularly as we undertake and complete the current remedial actions at the processing plant and focus on commercial growth’’
My guess is that £400,000 was all the money they had and that they they used this to pay salaries and other minor miscellaneous expenses. I doubt the reline has been undertaken. As to the other repairs, who knows. How does a vote of confidence turn into a hostage situation unless of course the said partner always intend to snatch the company. If surely fujax was to receive all the production for them to sell on as per the off-stage agreement why would they be jittery unless there was something fundamentally wrong with the entire operation. When were the operations suspended and what was the production figures up to that point? The whole thing looks odd. Then again it is all speculation, no insights and I doubt clarity will be forthcoming any time soon judging from the last sentence of the RNS.
*ends*
So was this a scam ?
Where has that money gone ?
If this goes under, Fujax stands to loose all they have put in. Also it will take years to complete insolvancy process and decide who gets what. Timing of this makes no sense at all especially if most of the plant repairs were completed as was told. Something doesnt add up here unless this was all a fraud...anyways cant do anything now.. see whats next on this.
Baiki - fair points!
Let's hope that they can get there in this corporate vehicle - it amounts to the same in the end as you say and just a matter of how much pain people have to endure otherwise along the way. From a creditors perspective, the RNS clearly threatens insolvency should attract some focus.
A return to mining before Christmas would be great. Insolvency before Christmas, not so much.
Agree, if they needed more money at the start, then it is unfortunate that didn't happen - £4m isn't huge in context of the opportunity but is now driving pain when there should be mining.
You'd have to hope that the RNS will catalyse bona fide funders to resolve. Unless I'm misunderstanding, what would you prefer as the holders of the US$10m secured loan notes, a) sharing (diluting) your security with Fujax Minerals (not ideal, but will drive profitable production), or b) receiving little or nothing at all?
Likewise with ZCI, you'd might think that it would be easier to agree the change and receive income from the mine within weeks than for everyone to go through an insolvency, lose production time and lose value only to start again with a longer lead and less value. The status quo seems a lose-lose for all concerned and hopefully that means that people will sense urgency and step up - not least for the workers.
He also owns a company that lent money secured against the assets. He will be ok. they will share out the assets or re-engineer the structure of the company giving them even more control while attempting to lure more investors to put up even more money, under the pretext of we are almost there, we have rehabilitated the machines, we have stripped the oxides, we are now at supergene/sulphides layer, the DMS will double production and serve you breakfast in bed. In all honesty I do not see how they come back from this. He may well put up a fight, however it will not be for the shareholders but for the creditors. Don't forget he did not actually purchase the shares so it's a paper investment. Don't get me wrong I am not accusing anyone of any deliberate wrong doing, but they are well insulated as opposed to the ordinary shareholders.