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Posted by Looed on the 25th June :-

Pt.2

J1 - Nino, as far as I know, you also talked to the general director of the company. I wonder what their position is on the offer of the Georgian side?

J2 - Nika, of course, when we heard this statement from the Ministry of Economy, we contacted the company "Frontera" and talked to the CEO of the company. As Zaza Mamulaishvili told us, a few days ago the company received a message from the Ministry of Economy that they wanted to make a certain offer to the company, but in the end, the company still learned from the media that the Georgian government would compromise. As Zaza Mamulaishvili tells us, the company continues to operate in Georgia and the decision of the arbitration is not such as to be the basis for termination of this contract. As Zaza Mamulaishvili explains, the company has already returned part of the land. As for the amount to be paid, the Georgian government itself has certain amounts to pay to the company, which refers to the return of overpaid VAT, so it is possible to deduct these funds to some extent. The company hopes that the meeting will take place and the company will continue its activities, as the Georgian side has no right to terminate their contract by the decision of the arbitration.

Zaza - We first heard in the press that they wanted to meet, but it is unclear what the purpose of all this is because in the same address they continued to spread false information about the results of international arbitration, our activities and the contractual obligations under which we work. If they think that they are expropriating our investments, then we will find ourselves in a different reality, but they do not have the right to do so by law and contractually. So it is still unclear what they are asking for because we are still working. We have not stopped working for a minute, although we have reduced the volume / scale of work due to these current events, but we have not stopped. And, legally, they can't stop on 27 either. The main demand they had was that we be fined more than $ 100 million, which the arbitration did not satisfy, and they also wanted to cancel the contract for us, and the arbitration also refused. But what the arbitration has imposed us is to return the areas where we do not extract oil and gas to the agency again, and we did that about a month ago.

Posted by Looed on the 25th June :-

Translation #9, News segment, 23/06, 5.30m, US$36.05
Pt.1

J1 - Two months after the end of the arbitration dispute, the Georgian government is ready to compromise with the US-based investment firm “Frontera Resource Georgia” so that it can continue to operate on certain terms at the mines owned by Frontera. What does the Ministry of Economy demand in return for this right and what is the investor's response to the offer? Nino Tabatadze will tell us this now. Nino, I wonder why the position of the Georgian side has changed?

J2 - Nika, the position of the Georgian side, can be said to have changed suddenly, because until yesterday we knew that based on the decision of the arbitral tribunal, the Georgian side demanded that the company "Frontera" leave the entire license area. What happened yesterday? Yesterday, the US Ambassador, Kay Degnan, visited the Ministry of Economy. At this meeting, they talked about attracting American investments in Georgia. The Georgian side expressed a desire to see more American investments in the country. Apparently, the meeting also touched upon the American company Frontera, as the Deputy Minister of Economy issued a statement late last night, saying that the government was ready to compromise so that it would be possible to continue working on certain conditions at the fields owned by “Frontera”. Until now, as I mentioned, we knew that the Georgian side demanded the enforcement of the decision of the Arbitration Court and informed the company "Frontera" about the termination of the contract. By July 27, Frontera had to pay $ 6 million and leave the entire license area.

Davit Tvalabeishvili (Deputy Minister of Economy and Sustainable Development) - According to the decision of the arbitral tribunal, all the main issues raised by the Georgian side were positive in all these matters. As you know, after this decision, there were some questions left for both “Frontera” and our partners from the United States, and I just want to state that we are ready to discuss these issues with the company. We are ready to try and find such compromises that it will be possible to continue working on the mines owned by the company "Frontera" under certain conditions, of course, by receiving the relevant guarantees.

Posted by Moleinahole on the 24th June :-

RE: On this day Stargage & Lightstep.
Mick I would agree that considerable caution is required here - but equally I can understand erazzel taking the opportunity to have a little shimmy.
Alot now depends on whether FRR really do have some sort of partner who can provide funds to settle up the bills run up with GG and Outrider. If not then this discussion won't take long to get to settling the bill on the arbitration and I would think employee wages. At that point either they better be able to pay either from the withheld VAT or an other source else this could be a short reprieve.
From here we then have to be able to deal with Outrider and wind that legal action up and be able to pay that maturing debt and then have enough in the kitty to agree and pay for a work program in whats left of the block.
So I'm pleased to see we now have talks but as shareholders we remain in a very precarious place and left watching the drama unfold.
If the field remains attractive for a partner (and we have a willing investor) then there is a less dilutive way out from here with the company recapitalsed through a significant transaction. If not then the risks here remain very high that alot has to be given away to attract new capital and pay off Outrider and placate the GG.
The dream outcome is of course a left field significant transaction that solves all our problems. In the absence of that the company will have to make deals from a weakened position which will inevitably reduce shareholder value.
But given most here will have valued the company at zero - its better than where we were to still be at the table at all - the company having been prematurely pronounced dead on several occasions already by the prophets of doom.
I don't agree with many things they have done over the past 4 years but I would not question Zaza passion for the task in hand - definitely more Barnum than Kissinger. So I think a degree of moderation here to let him finish the job is required as clearly this site has become a key focal point for dissemination of information from many stakeholders who are watching to see what shareholders think. At some point its possible we may yet have a say in how this plays out - as with so little headroom left and any deal or refinance involving equity likely needing shareholder approval if this progresses more favourably then the silence will come to an end. The first formal contact after such a long break will be interesting for sure. But for now its a wait - as ever.

Posted by Looed on the 24th June :-

A variation - Pt.1

"In response to the Ministry of Economy and Sustainable Development of Georgia, Frontera Resources calls the Ministry's actions blatant disregard of the ruling and calls on the government to stop the threats to arbitrary cancel the contract.
"In light of misleading public statements made by the Deputy Minister of Economy on June 22, 2020, Frontera wishes to highlight that, considering the Government of Georgia’s failure to achievecancellation of our contract in its recent international arbitration action against our company, theGovernment must now stop its blatant disregard of the ruling. It must now stop continued threats toarbitrarily cancel our contract on July 27th.
We wish to be clear that no legal basis exits whatsoever for cancellation of our contract with the Government of Georgia. The Deputy Minister’s continued insistence to the contrary is simply wrong andwe ask that the Government of Georgia cease and desist from the continued threats, harassment andintimidation of our business and its employees. Any attempt to arbitrarily cancel, terminate orotherwise occupy and seize by force the oil and gas operations of our company, is an illegal, criminalact of expropriation and will be treated as such.
Over the past few weeks, intimidation and disinformation initiatives have increased towards ourbusiness. Meanwhile, a cynical series of public statements have been made on June 23rd by the Ministerof Economy and Deputy Minister of Economy. These statements seem to indicate that while the Government of Georgia plans to arbitrarily cancel our contract on July 27th and expropriate our holdings, the Ministry “…will do our best to make U.S. companies feel even more comfortable…”
The Minister of Economy has this week released misleading information related to foreign directinvestment from the United States, stating that “in the first quarter of 2020, US investment increased by 34% and ranked second among the largest investor countries with 17%”. This is a disingenuous effort tomask the significant challenges associated with U.S. private-sector investment in Georgia. We call uponthe Minister to be publicly transparent and share the basis for this information in order to demonstratethose U.S. private-sector investors that are the basis for this substantial increase in foreign directinvestment, while Georgia’s overall foreign direct investment has plummeted by more than 50%.
The Minister of Economy has also this week gone on to publicly say “Today, about 300 Americancompanies operate in Georgia. In the first quarter of 2020, American investments were made incommunications, energy, development, tourism, etc. " Over the past year, the Georgian Embassy in Washington D.C., as well as other senior Georgian Government officials in Tbilisi, have made similarclaims in an attempt to make the public believe that there is a sizeable U.S. company presence inGeorgia. This is simply not true.

Posted by BezzyBushFire on the 24th June :-

RE: Kelly Degnan article, mentions Frontera
Morning All,

Yes, keysersoze, I though the same, and the google translate function works fine on my computer also.

For those with a caustic posting track record (and one that could do with practising some good English grammar, while they're posting), I will post the article in English too:

Washington expects further expansion of cooperation with Georgia to attract new US investment, US Ambassador to Georgia Kelly Degnan told reporters following a meeting with Natia Turnava, Minister of Economy and Sustainable Development .

“I had an important meeting with the minister. Our cooperation covers many areas, which is already contributing to the development of the Georgian economy. Our goal is to help Georgia ensure prosperity in all regions of the country. We have quite extensive and large-scale programs in the field of energy, small and medium production, agriculture and the maritime sector. We work closely with the Minister and the Ministry of Economy and Sustainable Development and we look forward to further expanding our cooperation to attract more US investment in Georgia, ”said Kelly Degnan.
It should be noted that the statement by the US ambassador contrasts with the recent scandalous accusations of a number of US congressmen against the Georgian leadership. In particular, back in mid-May, Republican senators, members of the Committee on Foreign Relations, Ted Cruz and John Cornin , Congressmen Judy Arrington and Markwein Malin wrote a letter to US Secretary of State Mike Pompeo and Finance Minister Stephen Mnuchin , in which they expressed concern about governance issues in Georgia . They pointed to “Georgia’s illegal financial ties with America’s competitors and enemies” (ties with Iran and ties with the leader of the ruling party, Bidzina Ivanishvili with Russia), which, they said, threatens US national security and the interests of American business in Georgia.

“We write to express concern about the deterioration of good governance in Georgia and potential illegal financial activities ... Over the past year, foreign direct investment in Georgia has decreased by almost 50%, and taxes and bureaucratic barriers to Western business have increased ... Once the legal business was ousted, illegal trade took its place, ”the letter said.
As part of the business, the Georgian “daughter” of the American oil company Frontera is mentioned, with which the State Oil and Gas Agency of Georgia recently terminated the contract in connection with violation of obligations, which was confirmed by the decision of the Arbitration Court. The Government of Georgia claims that in accordance with the decision of the Arbitration Court, the Frontera Resources Corporation Georgia significantly violated the contract, which gave Georgia the right to terminate the contract.

(Final paragraph to follow)

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