Member Info for breaktwister

At this point anyone buying in here is gambling that OMI will be able to make a good deal with MMA. I have seen nothing to support this view. However, there is a small chance that they could do so, only if MMA throws them a bone, and it is this small chance that is stopping me from selling out completely. GL all.

Chicken, the problem here, and I am making an assumption as the market has not been told specifically, is that MMA want to take the 51% they have "earned" and sell. Why else would they pay $2m? It is been discussed at length on here that the 51% ownership does not exist in a vaccum, it is only transfered upon Phase 2 start and comes with significant additional obligations.

The longer this drags out the more desparate OMI management will get as they realise they will need to raise cash at a very low mcap. They are much better placed to play their position aggressively now while they still can. But it is clear they have no intention of doing so. Utterly mis-managed.

I meant Brad and Louis of course!

LW, the share price is a reflection of market disgust at OMI management of their flagship project. The more I think of the current situation the more angry and astonished I am that a public company can be so mis-managed and yet CEO and Commercial Director can both keep their positions. I blame myself for my overly large position as lack of director share purchases was a red-flag that I ignored. Management is not aligned to shareholder interests, they are more concerned about not rocking the boat with Newmont.

Lack of any deadline for MMA is completely unacceptable and there are various avenues open to OMI to force MMA to make a decision. At the most basic level they could simply create a shell company and start the clock on Phase 2 while they are sorting out the details. Remember, Phase 2 was contractually set to start in January.

I see that Newmont is having trouble in Mexico https://www.mining.com/web/newmont-suspends-operations-at-penasquito-mine-in-mexico/ there is always going to be bigger problems for Newmont, so the duty to push resolution at Anza is with Brad and George. I see no evidence at all of pushing.

Indeed Happy, a lot of factors need to play out to make money in juniors. Strong management for one.

LW, my view is that MMA are in breach of the transition timeline but also the spirit of the agreement which is an "Exploration Agreement" not a "Care and Maintenance" agreement. OMI should not permit MMA to enter Phase 2 with intention of doing nothing, so yes it is better for all parties if MMA do not want to progress the project that some exit is agreed now. I fear however that OMI will fail to negotiate good terms, they think MMA have "earned 51%" but no, that 51% comes with obligation to pay further $20m to progress the project!

A deadline could be set by OMI at any time. Simple letter stating that further delay is unacceptable and in order to protect OMI shareholder interests deadline of 30th June for acceptance of proposal, or Phase 2 start, or we walk. It really is that simple and yet no desire from OMI to do this. Sorry, I cannot buy into such management. I was close to dumping the lot.

I agree with LW on timeframe. As per my earlier post we should be halfway through Phase 2 Year 1 right now. If MMA want out they surely do not want to be starting Phase 2 with the obligations it brings, they could well be in breach of contract from Day 1 given they have no intention of progressing the project. On the same token, as Chicken rightly states, they need to start Phase 2 to own anything! A pickle, and OMI valuation rests solely upon Brad and Louis (and their legal advisors) realisation of the strength of OMIs position, which I do not have a lot of confidence in frankly. I have emailed Brad with advise on this but still no desire to push MMA in any way.

OMI have made some proposal to MMA as per webinar, imo that proposal should have been presented alongwith a deadline for acceptance, or for starting Phase 2, or we hold them in default and walk away with 100%.

Sector is getting off the floor a little today.

I have been very negative here as I do not agree with the relaxed attitute to timeframe, but if Brad or Louis can somehow get the drills turning again at Anza I am sure that the stock will be many many multiples higher.

Chicken, seems sensible to me, however if this is the main driver why not clarify as such to the market? No reason has been given for the decision to place into C&M.

The situation at Buritica certainly does not help but OMI cannot control that. What we can control is timeline for the Anza project. If the 90 day transition timeline was adhered to we would be halfway through Year 1 of Phase 2 right now, meaning MMA would only have another 6 months of sitting on their "care and maintenance" before being required to start making payments to OMI, or indeed OMI taking control of the project as JV manager and having MMA pay the bills.

This is the importance of timeline, critical importance, and one has to wonder if it is incompetence or something else that is driving the current lack of urgency.

18% down in Canada but sure "let's wait and see what MMA want to do" 5 months after the contract deadline expired. Clowns.

To follow-up the bad news RNS with a webinar where no plan was presented was shocking. I understand good will and good faith in business but there comes a time when the gloves must come off. MMA now know they are dealing with clown act poodles. Maybe they are part of Newmont's circus? If not, they certainly represent a nice snack for a hungry bear.

Down 12.5% in Canada, while our genius board think the most important factor is "everyone acting in good faith". It would be laughable if this wasn't shareholder value they are destroying.

Bandit, you say they "must fight to reach some agreement with MMA". Indeed, but they are clearly unwilling to do so, and are refusing to set any type of deadline for MMA to act.

Maybe Brad/Louis have jobs lined up for them at Newmont when this all goes pear-shaped, as long as they do not rock the boat? I have no other idea as to how to explain the lack of urgency.

Phase 1 to Phase 2 timeline is contractually 90 days that ended in Dec 2022! OMI have a strong position to force MMA into action or walk away with 100%. But they are not doing so and cannot articulate why to my satisfaction - some nonsense about everyone acting in good faith. Fine, but when does the good faith run out - next month, next year, when OMI is nearly bust and needs to raise capital at 1p per share?

At least if Phase 2 formally starts MMA have to pay OMI $4m pa to keep Anza on C&M. Quite why they would do this instead of simply advancing the project is beyond me. Maybe the whole thing is a ploy by Agnico to renegotiate to their benefit or indeed take over the whole of Anza for a pittance.

So has Eduardo let it slip that the permits have been received? His words are there for all to see "the MEIA has been secured".

In the statement Eduardo Hochschild states "Immaculada MEIA" has been secured. What is MEIA?

"waiting to see what MMA want to do" is not a plan.

Good luck to all adding here, too much of a gamble for me, and in fact I considering dumping the lot given that our board were not able to provide any timeframes for:

1) creation of the new JV company which starts Phase 2 clock

2) force MMAs hand (default on threat of default on contract timelines and intention)

No details given of WHEN apart from "7-8 months" for new JV company, well 8 months has passed FFS. Again, if it was my company I would have come to the webinar stating clearly that we will give MMA 30 days to accept our offer, or come to some other exit agreement, or start Phase 2, and if none of these happen we start looking at default. Share price would be well over 8p if they had a plan. I would be quite happy to default MMA and look for new JV partners with our 100% holding.

Bhargavi, Aug/Sept? This should be dealt with by now. The longer this standoff goes on the more likely it is that MMA will shaft us. Brad/Louis have no will to fight even when backs against the wall. If it was my company I would be demanding the most senior MMA project owner to my office and make sure he understood if it's not wrapped up in 2 weeks then we default them and walk away with our Anza licences, which our board seem to forget are still legally and fully held 100% by OMI.