Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Morning Oldschool,
Thank you, the only question I have that no one can answer is if they are trying to wrap the sale of IMM and an acquisition into one meeting why not state this ?
There would be nothing confidential in a general statement and would potentially enhance the share price which all BOD’s love.
I am still convinced , or wishing, the reason is C).
Adamsky
Morning All,
As per the RNS on the 22nd of March the General Meeting to sanction the sale of IMM to AAG will happen on the 26th of April OR before. They have signed an SPA which the RNS on the 22nd March states …..
conditional binding sale and purchase agreement (the "SPA") with Acumen Advisory Group LLC ("AAG")
The conditional part being approval by PFP shareholders. So in my limited knowledge of legal terms does it mean AAG are committed to buying IMM ?
What is the long stop date mentioned, no mention of a General Meeting now to approve the sale , unless that is what they meant !
As the SPA has been signed the only conclusions I can come to are ……
A) The BOD are totally useless and couldn’t organise a pee up in a brewery
Or
B) The BOD are trying to combine the sale of IMM and maybe the RTO into one General Meeting.
Or
C) Negotiations are ongoing between PFP, AAG, TZM and the Mozambique Government.
The BOD have shown over the last couple of years to be professional and thorough, we can rule out A).
Quicker to get the sale approved then finalise the RTO when the target has been identified or have a resolution covering any future RTO in the meeting. I am ruling out B).
That leaves us with C), why do you think all the delays have been since December, why do you think we needed £500,000 when £2,000,000 was within our grasp, legal fees for AAG to negotiate a deal ? Don’t forget AAG also engage DLA Piper, which also has considerable experience in these types of disputes.
A) 0%. Chance
B) 10%. Chance
C) 90% Chance
I am not saying the negotiations will be successful but I am convinced they are on going.
Can anyone else come up with a plausible reason for these delays since the original December deadline ?
Hold on tight and you have got to be in it to win it !
Adamsky
Oldschool,
From what we know your figures seem reasonable and not rampy at all.
Let’s hope they come true, sooner rather than later.
BUT of course if the General Meeting is not called within 3 working days , taking out Easter, then what’s going on as I mentioned before the last RNS stated the 26th of April OR sooner, 14 days notice is required.
I hope we hear nothing then what is going on behind the scenes
Now I have opened my big mouth an RNS will drop tomorrow!
Silence is Golden.
Keep the faith
Adamsky
Afternoon All,
Who knows what is going on behind the scenes negotiations, the battery business opportunity or just the normal company workings.
The last RNS stated the date of the General Meeting on the 26th of April or before which must have two weeks notice, under 7 days to send the notice out.
The optimistic viewpoint…………….
As part of the BIT process you have to demonstrate that all avenues of a settlement has been exhausted.
Meetings have taken place with the interested parties in the past as RNS’d without success.
With AAG and DLA Piper onboard , who apparently have considerable experience in these types of disputes, who is saying now the SPA has been signed, showing that we have a watertight case, they haven’t gone back to the Mozambique Government.
This will further firm up the claim if successful as AAG will say ……….. we tried to come up with a resolution right up to the BIT claim being commenced , we showed them all the evidence but they just ignored us. This has extended the claim by x years and the loss of even more revenue.
Pay up now or pay even more later.
I am usually wrong but who knows.
Adamsky
The due diligence has been completed, which means we must have a water tight case. As I always mention we have a U.K. High Court Ruling in our back pocket.
The SPA has been signed, the only action left is for Pathfinder to hold a General Meeting , a formality , to approve the sale of IMM.
The General Meeting has to be given 14 days notice, this would really be the 11th of April latest.
Another 7 working days.
If the General Meeting gets called and approval let’s get the ball rolling and go full throttle for the Mozambique Government.
If the General Meeting is not called within 7 working days then there must be negotiations going on in the background as why else hasn’t the General Meeting been called ?
A poster mentioned that the Mozambique Government wouldn’t be concerned as they can let it drag on for several years and then say previous corrupt Government let this happen.
WRONG
The current and any future Mozambique Government have been engaged to negotiate an agreement and refused. The Mozambique courts and mining department follow the same rules as they always have done, mud sticks.
If a new Mozambique Government is elected during the BIT claim they have the option to resolve the issue.
Doesn’t matter how long ago it was or how long it takes the Mozambique Government, Courts and the Mining Departments will be shown to have assisted and condoned the stealing of a mining license by the General and his sidekicks.
Let’s hope we hear nothing up till the 11th and then wait till a deal is brokered giving Pathfinder many millions.
You have to be in it to win it.
Have a great week and for once hope for silence from the BOD.
Adamsky
Morning Oldblue,
You are incorrect , the sale of IMM and the RTO are two different transactions.
The sale of IMM to AAG is a straightforward transaction of give PFP the £2 million and you own the company immediately, providing shareholders agree to the sale.
PFP then becomes a cash shell and has to RTO within 6 months or get delisted from AIM.
No RTO required for the start of the legal process within 3 months of AAG purchasing IMM.
It is still 4 weeks to go till the 26th April.
I would love some deal to be going on in the background but are not convinced, just normal slow process of arranging a meeting.
Have a good day.
Adamsky
Afternoon Itzagamble,
From the last RNS the SPA has been signed, the only task that requires to complete is for Pathfinder shareholders to approve the sale of IMM.
This is on or before the 26th of April , 4 weeks tomorrow, I saw a poster doubting this would happen, why ?
As regarding the £6 million this only has to be raised if after 6 months of becoming a cash shell no RTO has taken place and this sum is raised so that we can re enter AIM as an investment company.
The share price is ridiculous, we are now valued less than the funds raised and £2 million from AAG.
Maybe the long delays are there to give the Mozambique Government and TZM a chance to formalise a payment to Pathfinder.
I cannot believe that Pathfinder has not been in contact with these two since the original announcement in September. As part of the BIT claim you have to show that you have done everything you can to get to an agreement before starting the BIT claim. Keeping them informed and a chance to settle would enhance our BIT claim by showing the powers that be that we gave them a chance to settle on numerous occasions.
As regards Align they are quiet as most of their shares were given for their research, unlike the companies they continually promote who they have either bought shares in or have a vested interest.
Align are meant to be an financial research company, why do they keep tweeting political statements.
Like others I have a dislike for them.
Who knows how this will end but I am still hopeful of a settlement before the sale of IMM to AAG.
Keep the faith
Adamsky
Evening Itzagamble,
From a research note from Align dated the 6th April, 2020, just Google and you can easily find it. Relevant part copied below. I assume the information is correct the amount of shares we showered on them like confetti.
Adamsky
Extract from Align ………….
Pathfinder Minerals originally acquired a large African mineral sands project in Mozambique back in 2011 for £34 million via a paper reverse takeover transaction.
Afternoon FreeBuffett,
Like others I am disappointed with the share price, several years ago this would have jumped to 2 to 3p on yesterday’s news.
Here is an extract from some calculations I posted a while back , as far as I am concerned this is the absolute minimum acceptable as it means we just get our money back.
Please feel free to comment and challenge.
Adamsky
Extract from previous post …………
As per your question on value of IMM in theory it is potentially worth 100’s of millions but let’s be more realistic and I have set a minimum price based on what our costs have been. If I have missed anything please let me know. ??
Cost of licence £34,000,000?
High Court ruling £1,000,000 approx,?
Fund raise July 2011, scoping study etc. £11,000,000??
Total £46,000,000??
The fund raise happened in July 2011 so I have used the Hargreaves’s Lansdown inflation calculator to look at the value of this sum in today’s money.
??£68,000,000??A
wild guess, as it will take ages, for fund raising, Mozambique court costs and share dilution. ??£7,000,000??
Giving a total of £75,000,000
Baldmark,
A very clinical valuation which doesn’t take into account any settlement or a successful BIT claim.
AAG would not have parted with the best part of £15 million if they didn’t think they had a water tight claim. As you say in the current market sentiment.
Also the agreement states …………
‘will use its best endeavours to settle and/or finalise the Claim within five years’
Not the 5-10 years as you have mentioned.
Only TZM will pay Pathfinder up to the 26th of April forced by the Mozambique Government. The only thing I can see the Mozambique Government doing is offering an alternative license.
Better to resolve now and appear weak , when there is minimal publicity, than have a judgement against you showing you are corrupt with plenty of publicity in the financial and maybe wider press.
The Mozambique Government know what took place and the wrongdoings they will also know the further the claim goes the larger the settlement.
Each person has their own opinion and valuation, mine is optimistic that we are nearing the end game.
Keep the faith
Adamsky
Latino,
Spot on also.
When the General lost the U.K. High Court ruling he appealed and then didn’t produce any evidence. That sums up the case for the General and the Mozambique Government, no defence.
The General still owes Pathfinder over a £1 million in costs awarded by the U.K. courts which an RNS many months ago implied they had found a costs recovery company to pursue.
Not sure where we are with this , I will e-mail the company when things calm down a bit.
Keep the faith, it might be days, weeks or years but Pathfinder will receive many millions in compensation and show that the following have been complicit in the illegal transfer of the licence.
The General - who stole the license
The Mozambique Government for turning a blind eye and not reaching a compromise with Pathfinder
The Mozambique mining licensing department who transferred the stolen licence from Pathfinder to The General without any legal authority.
The Mozambique Courts who refused to recognise the U.K. High Court ruling.
Your days of ignoring a small British Company will soon be over.
I can’t wait.
Adamsky.
Good morning all,
The naysayers are starting to surface who haven’t got a clue of the company’s history, yes it has been years but we now have one of the top African litigators willing to spend £15 million to finally nail the corrupt Mozambique Government, they know they are onto a dead cert as we have a U.K. High Court ruling in our favour.
Do you think after all the due diligence we don’t have a water tight claim.
The Mozambique Government could ignore a small British mining company but cannot ignore the claim that is coming their way.
When the judgement is in our favour , which I am sure it will be , the Mozambique Government will be shown to have assisted in the stealing and reassignment of the mining license and will be forced to hand back the licence or pay £100’s of millions in compensation.
A great advert of why not to invest in Mozambique.
Adamsky
This is the biggest news since the U.K. High Court Ruling.
If AAG have bought out IMM from Pathfinder after extensive due diligence then they realise the chances of getting a massive payout is nigh on a certainly.
Remember Pathfinder will receive £2 million now and a minimum of £20 million on a successful legal claim, it could be many times this figure as we get £20 million minimum or 20% of the compensation which could be up to $1.5 billion (independent valuation of the licence) which if my maths is correct equals £250 million to Pathfinder.
The settlement might be weeks or years , who knows but better in than out.
Perhaps now TZM and the Mozambique Government will realise that their time is nearly up and can’t ignore the legal claim that is coming their way.
Pay up or wait till the Mozambique’s Government’s dirty washing is aired in public and this will send a clear message to other companies looking to invest in Mozambique that it is a corrupt place to invest.
Best of luck
Adamsky
Afternoon All,
I am feeling neutral at the moment the reason being no GM called and leaving the announcement till the last minute, if agreed why not RNS out sooner and why no GM called !
The two million is in pounds not dollars.
Have a good day and we will find out soon.
Adamsky
Oldblue,
Thought you might have recommended my post ?
On a chat board you don’t have to give financial advice just a general opinion of what you think will happen and general prospects of the company. Especially with a deadline coming up.
Adamsky