Member Info for Lubumbashi

For me this will all turn on how the judge views Hope's veto of the proposed $5m credit from Zaza. The funds would have been available to pay OR if that had been approved and there would have been additional liquidity for opex which would have kept FRR operational until the BH and BP agreements were put to bed. If the judge rules that it was a financially sound and legal plan then I think that Hope is in trouble. If not then we are in for a long fight. There are plenty of pluses in our favour, not least the fiduciary duty of a director to maintain the company as a going concern. Hope has clearly stated the he, as a self-appointed CRO, would sell off the assets leaving the company without an operating base. For me the big hole comes in what does Hope stand to gain from all this. Surely he is not creating this fight over $30m plus interest. As a director he should report any direct or indirect share holdings but has not done so. I wonder if he is also guilty of non-disclosure and insider trading, because with the NDAs in place I'm sure that trading would have been closed to the BoD. Or is this all just spite because he lost out in 2016? Tomorrow will be very interesting.

A shorters malicious attack and the share price drops. 209million shares traded. Good job the holders of the other 15.4 billion shares are happy with their investment otherwise it would have been chaos.

I thought I detected a hint of sarcasm

On a trading volume of 0.1%. I wonder what those sellers know that the other 99.9% of shareholders don't?

I can get a firm price on 10m, someone wants some shares. Unfortunately they are not prepared to pay a fair price.

Zaza has a mega holding. He also seems pretty chilled.

So various opportunities present themselves. You can be a serious investor, a shorter or a trader and still have legitimate objectives on AIM. My problem comes when you do not look at the underlying fundamentals of a share when you decide on what you want to achieve. If you resort to scare tactics or outright bullcarp to try and realise a shooters dream then you will lose. If, on the other hand, you have properly researched the company and spotted a weakness, well good luck to you, please make lots of money by selling short . I for one, believe I have researched FRR and think it has a huge potential. Consequently I have nearly £250k invested here in the belief that it will be give me very good returns, both capital gains and dividends, if I have patience. My opinion, based on my research , I look forward to this coming week. Gla

Is AIM a gamble or an investment opportunity? It all depends on what your objectives are. Unfortunately because of the toothless oversight of the regulators AIM is open to manipulation

As some posters have pointed out; cross default clauses are automatically triggered when one of the parties to an agreement is in default of another agreement. All the default and cross default clauses I have ever seen are all followed by a clause giving a time frame to remedy the default. FRR was pretty quick at resolving the YA dispute so I doubt very much that a cross default clause will have any standing. But maybe that is why Hope is accused of failing to exercise independent judgement.

Discovery is the process whereby all parties in a civil action are required to produce everything that they will rely on to prove their case. This is done to prevent time-wasting in court and to assist the parties reaching an out of court settlement if at all possible. The judge will in all probability disallow any evidence that was not made available during the discovery period. And it is everything, documents, voice recordings, photographs etc. It is also usually accompanied with a list of witnesses to be called. The judge will only move to discovery if he is convinced that there is a case to be answered. So far FRR appear to have been pretty convincing. Next week is going to be very interesting.

And I should add, the trade cancellations stopped at the same time.

Good points Mole. I just find it curious that there is such a specific number. If it was for future income I would have expected to see a number rounded to the nearest million. With this claim it looks like there is an underlying calculation that has been used. Something like shares issued at a price below the WHI price, or the 1p that was used as the reference for the 2017 restructuring. Jmo

I am curious as to why there is a claim for damages. YA issued a default notice which triggered Hope/Outrider to try to secure their loan by attaching FRR's assets. The dispute with YA was resolved quickly and a better repayment profile agreed. Surely at that point Outrider no longer needed to secure its asset, and how could that brief spat have caused $56m of damages. Also Hope is on the Board because of the Outrider's loan, so whilst there might have been a conflict of interest it falls a long way short of a fiduciary failing. I think that the YA debacle unexpectedly exposed a shorting game that Hope and Outrider had been playing.This probably resulted in FRR having to issue far more shares than necessary on the YA conversions and this has resulted in the damages claim. It is also a serious failing of a director's fiduciary duties. If FRR win would us shareholders have a case against Hope as part of a class action?

We need the results of the EWTs. Until those are released everything else is a bit of a sideshow. The NDA is obviously necessary and the lack of flowrate news sanctioned by the Nomad. So patience is still the name of the game. Trading volumes are low because we are all holding in anticipation of great things. GLA

The financier must have had sight of the ewt results otherwise this would have been YA type of finance. I did say that the major may have been toO greedy so this is Zaza's response to its demands, (Basically we can do it ourselves) and so negotiations are ongoing. I have no problem with $ denominated debt, revenue is $ based and so no currency risk. And finally I am not selling.

My point exactly, why isn't it the other major? Maybe they were to greedy.

Unfortunately I'm not sure this is as good as it looks. Why do we need finance if we are going into a joint venture with a major. I hope I am wrong but I think this might be the signal that the second major has walked. What is really positive is that we can get serious finance against the asset. That shows that the EWTs have given good results.

Just got home and caught up with the day. SO BAD. Everything down. At least FRR was only 3.9% down. Time for a stiff drink.

Maybe a cashless settlement, just wipe the $30m that we owe them off the books.

I made a proposal to a municipality to prevent it from going broke. The councillors turned it down. As we left the council chambers I turned to my colleague and said, "That is a disaster". We were immediately greeted with the news of the planes flying into the twin towers. It put my disaster into perspective very quickly.