Member Info for Cause17

Thank you for the research. Your link and comments (along with @ivybush and @tomcat-14 has eased the nervousness.

I am still trying to figure out where to read all the information myself.

From reading the latest RNS I have a question:

The secured creditors have objected to the commercial court of São Paulo in relation to its decision and on 12 June 2020 after market hours filed a petition, none the less the original ruling still remains in force.

We have also been informed that due to court closures during the current COVID-19 outbreak in Brazil, a ruling in relation to DEV's petition to annul the secured creditors liens and charges over the Amapá Project is now scheduled for the end of June 2020.

Are these two different petitions? Or is Dev's petition a continuation of the previous (effectively) ongoing petition where the court ruled that if the banks don't agree to a settlement within 60 days then they could become unsecured creditors (This is what my current interpretation is).

Also can someone kindly explain to me what this means in relation to today's RNS. This was from the RNS on 12th of March. The word confusing me is owned by DEV. Is that meant to be owned or owed. If owned then how does it work?

Since our last update, Cadence and our joint venture partners Indo Sino Pte. Ltd. ("Indo Sino") have been in negotiations with the secured bank creditors, and we have offered a settlement involving a discount on the amounts owned by Dev.

This settlement is intended to be paid from part of the proceeds from the sale of the iron ore stockpile currently held at Dev's 100% owned port facility in Santana, Amapá.

Sorry. Reading back I should add this. The study is to show the value to existing and potential investors.

@mrcautious - I had the chance to listen to some of the podcast that was there today. My understanding from what was said is that the scope study is just as what Huinwha said. It is to demonstrate the value of the mine via an independent study.

I also believe that it was said in the podcast that they didn't want to raise more (towards the 3.5 million needed for next 7%) as they believe that the 2.5 million in escrow account can contribute to some of it and once the bank creditor agreement is reached, they can ship more of the stock that is already there (I believe there is a limit of 10 million net, in $??, that can be shipped as per the court ruling) and the additional shipment will also help towards the 3.5 million therefore limiting the further share dilution to come (from my understanding it will come eventually and I think they want that to be at a higher share price which makes sense but I guess dilution is not the best news for existing share holders?)

This is my understanding of what had been said but I am new to this so I have no idea as to how reliable the BoD are..I guess the only way is to see it unfold.

Also I understand the level 2-4 studies are yet to take place. Any idea on the estimate of time lines?

Also I got the idea that some if the £650k will go towards the existing loan. Does anyone think that this is to avoid further dilution of shares (like what happened on 2nd - not sure on the date - and confirmed last Friday) through CLNs being converted to shares?

Also on that note, generally, is CLN being converted to shares a positive sign or negative? My thinking on Friday was that it shows confidence on the company as I'd in doubt, it is always better to hold the cash as you may lose an opportunity to make more but you don't lose the actual cash. But after reading this board..I don't know if I had taken an optimistic view of that. Your thoughts would be appreciated.

@obs - Thank you for the link. I will read up on it.

@Huinhwa - Some terminologies are new to me. I will do my research to understand what they are. Thank you again. Really appreciate it.

@Huinhwa Thank you for clarifying the two studies have different purposes.

But on the other side, couldn't it be that they are expediting the study (assuming scoping study and commissioning study are the same) because they are confident of acquiring the 20% stake?

Then again, wouldn't they be able to place the share at a better price post the announcement of shipment (assuming there is a spike in share price and consolidation at a better price than 9p)?

Or do they have a more immediate reason for raising funds? Or they plan to raise more (I assume they will have to before operations start)

Any answers or opinions would help me better understand.
Please correct me if my assumptions are wrong.

Apologies if I am asking questions that have already been asked. I have been following this chat but have a few questions:
As per the RNS, part of the 650k will be spent on a scoping report. My understanding of scoping is, it is a study to understand how viable and what is required for this project. As per the presentation I came across on this project, a commissioning study is due after shipment (in the presentation this comes under next phase (3.5 million investment). Are these two studies the same or are they for different purposes? My understanding from limited reading makes me think they are similar.

Also if they are scoping the project now, what does it say about the predictions on the presentation?

Again, apologies if I am asking questions that have been already answered. I am trying to get a better understanding of this project.