Reply from Hird6 Mar 2015 14:16
to casual47 over on ADVFN:
The first part is a reply to a question I asked regarding seeming conflicting information from the company regarding whether the PXF was secured against assets or cash flow.
I then also asked whether Shandong had actually taken ownership or "merely" taken charge over our assets.
Plus I asked about update on court proceedings.
---------- Forwarded message ----------
From: Matthew Hird
Date: Fri, Mar 6, 2015 at 12:55 PM
Subject: RE: African Minerals - Shareholder query
The main security under the PXF are cashflows arising under certain of the offtake contracts. These cashflows service the debt (interest and principal), which is why for brevity we have disclosed the existence of this security in the annual report and other public documents.
There is additional security under the PXF, including AML's 75% holding in the Operating Companies and a fixed and floating charge over the assets of the Operating Companies, except those pledged under the Equipment Finance Facilities. Since no cashflows are arising under the offtake contracts due to the business being under care & maintenance, the other parts of the security package become more relevant.
With regards to your query relating to SISG, as per our recent press releases, subsidiaries of SISG have taken steps to take control of the Operating Companies, but not assumed ownership. As AML is seeking legal advice on these developments, it is not appropriate to comment further.
Finally, we intend to announce something very shortly relating to the outcome of the hearing that took place earlier this week.
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