Member Info for dropside

Odd how Fujax were prepared to lend even more money if the terms were the same as the original loan. When this couldn't be delivered they then wanted all their money back - even the money lent under the original terms. But they would have lent more under these terms, what changed? Maybe the CRA relationship with their other lenders was an eye-opener that made them rethink the whole thing.

Where is Roy Pitchford in all this? He performed really well at the EGM and kept things on track apparently, but has been very quiet since. I hope he is given the space to act and can sort something out. One solution could be a sale of Mowana to someone with deeper pockets and retain say 20% (maybe optimistic) interest. Then focus on Matala...
Not great but it's better than the worst case of total loss for current shareholders.

Have they got the headroom to issue many more new shares? The EGM refused to extend the issue allowance that the company requested.

*secured note holders

I believe the CLN holders include people like City Financial and others who do not get on with the board. Look how it kicked off at the EGM. I had hoped relationships would improve after Roy Pitchford came on board. There could be some power play/brinkmanship going on here, and some arm-twisting. In the end people like City may consider that some of their clients will still hold stock here and take an easier line.
I am inferring things here, I'm not an insider! Just hope this is what is going on and we are not just being taken down a road of asset sale and financial engineering that delivers a debt free company and chucks the rest of us under the bus.

There could be brinksmanship, someone may crack if they think they are going to lose their investment. I can't get hold of Charles Vivian at the moment either btw.

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.

In August they referred to the CLNs having a conversion price set at 20-25% discount on the current price. Negotiations with the note holders may have changed this since but you would have expected this to be have been announced.

I've got £37K in here at average 6p, What a crap investment that has been so far.

It is likely they will get the plant running successfully. There is nothing fundamentally wrong unlike say WTI with their flooding Tschudi copper mine. There is debt but the holders seem supportive. Only question is how many shares will there be when they get there? Its a decent high risk/high reward from here but I expect the share price to be all over the place for the next few months unless there is solid news. A traders dream if you are into that.

Glazers not Glaziers, autocorrect eh?

GS, I agree, from what I understood of the rather opaque take over details, Penmin didn't actually own the mine until the day Alecto/ Cradle Arc took it over then it all simultaneously transacted. It reminds me somewhat of the Glaziers taking over Man U with debt on the football club. It is legal but is it right?
Penmin have done a poor job of the due diligence and start up. If the contract was to a true third party then there is an argument for not paying, let alone delaying payments. But that won't happen of course.
It could well multi-bag from here but its a bitter pill for those invested from the Alecto days. "Transformational investment" indeed.

GS Thanks. Re-reading the rns it seems to be more installing standby/redundancy capability rather than pulling apart the series line. They do say effects will be seen in Q4 "..proposed rehabilitation work to the processing plant, will enable the Company to achieve a significant improvement in throughput and hence recovery in Q4 2018"

Very good news today.

Why do you say just a couple of months? it is good that they have already done the work to identify what they need. The spare parts should also be pulled together without too much delay. However de-coupling the process elements so that they are not in series would have taken a bit longer I would have thought.

Blue already

Up 43% today, as Alex Ferguson (nearly) said - AIM, Bloody Hell!

ZCI have already been co-operative on the debt as announced in the 1 August RNS:
As set out in the Admission Document, Leboam, in which the Company has a 60 per cent interest, has a total of US$19.9 million in secured loans outstanding. Whilst monthly repayments of principal were due to commence under these loans in August 2018, in conjunction with the equity raising transactions set out above, the lenders (including the vendors of Mowana) have agreed to defer principal repayments until January 2019.

This January 2019 date must have been negotiated back again as it is not mentioned specifically in 2.4 in the interims, just payments due in the December (the CLNs) and April (the $10m).

Nice strong finish today, dare we hope for a blue day tomorrow?

GS- Thanks for the calculation. It is tight but do-able if they can get the plant running fairly consistently. I hope we get regular updates on this.
A running plant will make the debt finance conversation very much easier.

There is also the loan note requirement in December:

In addition, the Group has £1.275m principal amount of convertible loan notes which mature in December 2018

Well if it is the CEO getting out we are in trouble!

with this sort of percentage in a day there should be an announcement - "see no reason for, however...etc"

This looks like the culprit

13:10:14 02-Oct-2018 0.85 GBX 34,746,258 295,343.19 Off-book AIMX LRGS