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Brad and Louis must be trading this morning
DrR, OMI do not have to go to Court as possession of the assets sits with us at present. "Possession is 90% of the law" which means that OMI have a very strong position to force MMA to make a decision. I have been banging the table about this since the bad news RNS and via emails to OMI also. OMI simply have to send a letter says that Phase 2 must be started by X date or it will be assumed that MMA are forgoing their option thus the agreement will be terminated. We then look for other partners.
Karl, MMA is not going to simply walk away with nothing after paying a $2m Phase 2 fee just a few months ago. MMA total spend to date is approx $16m including the overspend and fees paid to OMI, this essentially gave them an option to progress to 51% ownership plus further obligations. Their exit fee is likely to be in the range of $2m to $10m or perhaps a percentage free carry, hopefully small depending on how good OMI negotiating skills are, which I do not place any high hopes on tbh. Interested to hear that DrR is upbeat about the current limbo ending soon.
jackbal, i share your anger, even a junior project manager knows that timeline is everything. the agreement is fully timeboxed into phases including transition phase of 90 days between p1 and p2. ok, fine, timelines can slip but when that happens you set a new target, it does not mean you leave an undefined timeline, especially when dealing with a 3rd party vendor/partner. you ******* set a new timeline immediately and you make sure your partner understands the consequences of further slippage.
when louis made flippant webinar comment that the "90 days is irrelevant" or suchlike i was gobsmacked. these jokers do not even have basic project management skills never mind ceo and commerical director of publicly traded company.
when do we get a chance to vote for replacement of the board?
There is nothing nuclear about saying to business partners that something is unacceptable, or putting a reasonable timeframe on a decision which is already 6 months overdue. In fact it is perfectly understandable.
Anything to report DrR? We have exchanged emails but no call, despite my offer. They (Brad/Louis) seem to be extremely averse to putting any type of pressure on MMA whereas I have the opposite view.
I wonder if Brad sleeps all day while waiting for MMA to make a decision. I have stopped checking here every day at this point and have given up on OMI setting a deadline. Snoozefest.
Jeb, that is a big assumption that a P2 agreement will be reached. P2 is for an exploration venture which requires expenditure and commitment from the JV manager, which is intended to be MMA with 51% control and $20m spend. If MMA do not want to do that then according to the agreement OMI should walk away with 100%. The friction is because MMA do not want to walk away with nothing. The question is what do they want which OMI should be setting a deadline for their response, otherwise we walk away with 100% of Anza.
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.