Member Info for Juicy

Acker,

Changed your tune,.

Hypocrite.

Juicy

Acker

You've changed your tune. What happened. Does protecting GR no longer play well with your followers.

Juicy

Would be interesting to know who took the placing shares. Essentially 10% of the company.

Don't know why GR would wait until Friday afternoon to issue this news.

Also, what are we paying Stark for? Certainly, not for results!

Stark on LinkedIn, getting closer to 1st run.

Acker,

Sorry for the delay in responding. I went for my tea and then got caught up watching tv.

I think you're reading more into my post than is there. I agree with you that the ball mill might be needed before the plant issues are fully resolved.

Not sure what you mean by your reference to my followers. Didn't know I had any. Don't do twitter, facebook, etc., don't post often on this BB. Been in Prem for several years, generally mind my own business and leave others to theirs.

Juicy

Acker, FM was called due to plant issues that prevented production, so when Stark resolve those issues and optimise production, then yes, IMO they could call an end to FM.

Canmax tried it on and failed but they're secondary at this stage. Primary issue is Stark resolving the plant, producing SC6 in quantity and declaring an end to FM. After that Canmax can decide what they want to do, although it seems unlikely they would walk away, particularly when they have shown no inclination to date to seek arbitration.

Whilst any arbitration might take 12 months, this doesn't alter FM which anticipates maximum 6 months, so GR still needs to get plant/production sorted within that time frame.

As anticipated, legal action necessary if Canmax want out, which will take many months.

Also seems strange that they say Prem are in apparent breach of contract. Surely they must have legal opinion that Prem are, or aren't they sure?

Seems strange that they made no reference to invoking FM on Monday

Presumably Prem's response will be that they called FM so Canmax can't cancel and ask for re-payment, so dispute will need to be resolved in arbitration/court.

My take on what was said yesterday was that they could strip and repair and re-start production but that the problem would simply re-occur, requiring a further strip and repair.

Leaving aside Prem’s options, or lack of, currently, what about Canmax?

They have taken a substantial shareholding in Prem and have also made a substantial pre-payment for product. Delays have occurred and as yet no product has been supplied but this does not alter that position.

Canmax could have cancelled the contract but did not. Instead, they had entered into discussions for a new agreement, only to then, at the last minute, try and change what had been agreed.

Prem have now declared FM so Canmax cannot cancel without (legally and successfully) arguing against FM, by which time the issues with the plant should be resolved and, this being so, would Canmax then want to cancel, which, if they did, would allow Prem to make a deal and/or sell any product elsewhere while having the benefit of a 90 day cushion to re-pay Canmax.

Canmax could, of course, try to increase their shareholding and make an offer for the company but, if they don’t and, for example, GR calls a rights issue, would Canmax take up their rights when, in doing so, they would be assisting Prem to continue operating until the plant issues are resolved.

While I do have concerns with GR and with Prem’s current position, I also think that, moving forward, Canmax will have their own issues.

Rights offer, 1 for 10 @ .3 could raise enough to last company until plant issues can be resolved.

Grevan

Whether FM applies will depend on the contract wording, both between Prem/Stark and Prem/Canmax.

GR has referred to latent defect which would suggest that some part of the plant has been manufactured with a defect that wasn't and couldn't have been known to be there but has later manifested itself and it is this that creates FM.

Don't think you can do other than accuse Canmax of trying to take advantage. If they weren't happy with the delays, etc., they had the option to cancel and seek repayment, instead they sought to change the agreement.

So the tenet of GR's position is that Canmax tried to take advantage of the plant issues, he then called FM to stymie them and, although they can take Prem to arbitration on this, in the time this takes the plant issues will be resolved and the mine will be producing.

Perhaps it is just chess.

First question, George,.....is why, every time we speak, do I end up looking like a ****?