Member Info for mrc_mrc_mrc_mrd

Aimster - please see the petroleum regulations. TPDC get first dibs on any deal. They can buy the whole 25%.

You are thinking of back in rights which are a different kettle of fish I’m afraid.

Also if the Gov take the 25% then what is to stop them delaying for a year until the drill is firmed up. If it’s a success then they pay up $3m. If it’s a failure then they torpedo the deal. That could well be their plan. Why spend 3m now when you can spend it in 12 months instead? Meantime SCIR would need to fund it.

Aimster - I would agree if it were a relinquishment.

When money is involved there are games to play. It is best for ARA and AEX if there is a delay and probable relinquishment. If the Gov actually want our 25% then it might be in their interests to complete quickly? But maybe the end game is a delay in order to hand it over to ARA / AEX for free? I’m sure many in Tanz are not averse to a wad of cash in a paper bag. Where’s can be greased or gummed up depending on the highest bidder.

Page of cups - it is not my interpretation. It is a fact that the economic effective date is the 1st of January 2022. As soon as the deal completes the expenses from that period onwards must be settled by The purchaser.

Aimster - what makes you think the handover will be quick? Are you new to this project??potentially this will sit on the ministers desk for 12 months, or require an act of parliament to actually go through. Where the gov of Tanzania is involved things do not move quickly.

Page of cups - you are getting excited about nothing. Why not just call the company to clarify?

PoC - you are wrong. Economic effective date is when WEN become responsible for costs. If you need further reassurance then email the company. You are making a fool of yourself now.

You are distracting from the real threat which is that pre emption rights are not waived and SCIR do not receive a loan.

Page of cups - you are wrong. It may not explicitly say that costs are paid, but it is implicit in The economic effective date.

Whatever costs have been incurred by SCIR at completion will be paid back by WEN. Of course the interest on the loan will need to be covered by SCIR.

PoC - the key part is “by way of a corresponding reduction to the consideration payable under the Asset Purchase Agreement.”

The consideration payable will include all costs paid out by SCIR for the work programme. So this will just zero off the loan monies.

BD - I post out of interest only. SCIR is interesting if nothing else. Any investment involves trust in the BOD. If that trust is misplaced it is very difficult to make changes, especially with a BOD that seem to have installed some large backers in the shareholder list.

Anyway I hope you can remove the BOD at the AGM. I doubt you will uncover anything you can pursue the BOD for, but if you can get some trusted parties on the BOD then at least they have eyes on the state of the business.

Everyone should be very concerned with the possible pre-emption IMHO. PoC - what you are talking about is a distraction from the real risks at play.

You are right that if costs increase beyond the 6.25 million then SCIR need to find that money or risk relinquishing the asset.

However, that would not be in WENs interests so I expect further loan would be made to keep things going to completion.

Ultimately the costs will be borne by WEN.

PoC - the BOD have not communicated it very well, and todays RNS is not very helpful. BUT when it all shakes out you will find that I am correct.

WEN are responsible for costs from the effective date IF the deal completes. If it does not complete then they can demand repayment of the loan

PoC - WEN will be responsible for costs back to effective date if the deal completes (of course the BOD should confirm this). The loan is only there to keep SCIR solvent in the knowledge that anything in Tanz takes forever to happen.

I would be much more concerned about this weeks developments. With “The Facility” being separate to the “APA” it seems that ARA or TPDC Might not need to provide this as part of the pre emption terms…very sticky situation IMHO. Could lead to relinquishment if SCIR can’t find to completion…of course TPDC in charge of timeframes so they can just wait until SCIR fail to meet cash calls and hand it over to ARA for nothing.

All my opinion based on what is available from the company.

Well done AB. I got some at the same price today too.

Bottom is in I think.

I see you were a buyer at 0.725p

GL

So AA, for example if a loan is just a good faith arrangement with WEN then SCIR could remain liable for costs with no loan monies right up to the long stop date next year. No way they could meet the cash calls IMHO.

As I say, best hope Gneiss guys have earned their fees?

AEX were at pains today to say that no monies had been handed over to SCIR.

BW77 - I don’t think you have understood buddy. The deal is done. By all means Buy if that is what your research tells you to do.

I guess it depends whether the loan is part of the contract, or a different agreement to keep the asset in SCIRs hands.

Without the loan SCIR can’t meet the cash calls and relinquishment will follow - only my opinion of course?

AA - you are right to question SCIR / Gneiss competence I feel. They should have at least understood what will happen in this case. It seems they are only now fumbling about trying to understand what this all means for the deal.

I don’t have much confidence that a loan will be written into the deal such that TPDC or Ara are required to also provide it. This could mean a relinquishment is on the cards.