Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Re Green 2nd amendment, I believe it was October 2018. The site is down now so will check later and verify.
I don't recall the exhibit but it was newly filed and it was titled Statement of Claim. It is the actual claim they originally filed for arbitration of the employment agreement, before it got sucked into court via ZM's derivative claim and FRC seeking an injunction. I think a version of the same info was in an earlier doc but I didn't recall it in this much detail naming parties and such before.
The judge denied the motion in open court Friday. There is an unsigned order that has now been filed.
Motion to dismiss Ballard denied.
Check out the details of the backstory of ZM torpedoing potential financing in 2019 from the statement of claim in the arbitration against ZM. Frontera had allegedly engaged Evercore to seek financing. SN testified to some of this but here are more details:
13. As FRC sought to continue its investment programs amidst challenges from
the government of Georgia, in the summer of 2019, FRC engaged the investment bank
Evercore in Houston to assist in raising new capital. As part of this effort, Mr.
Nicandros, as Chairman of the Board, initiated a strategic relationship with a company
called ShaMaran Petroleum Corp (ShaMaran), a subsidiary of the giant Lundin Group.
Mr. Mamulaishvili was asked to coordinate with ShaMaran and assist in building a
potential partnership so FRC could arrange new/further third-party financing.
Inexplicably, Mr. Mamulaishvili resisted evolving such a potential partnership in favor of
an alternative agenda not revealed to Mr. Nicandros or FRC’s board.
14. In approximately November 2019, FRC was advancing discussions with
ShaMaran to make a major investment in the Company. Representatives of ShaMaran
were scheduled to travel to Georgia to conduct due diligence of FRC before committing
to invest money in the company. On the eve of their visit, Mr. Mamulaishvili cancelled
their trip without consulting FRC board members, also making it impossible for FRC’s
Chairman to make the trip as he had assured ShaMaran’s management he would do.
Although Mr. Mamulaishvili finally met with representatives of ShaMaran in December
2019, he created significant frustration with their representatives and did not respond to
their discreet requests for information they needed in order to conduct their due diligence.
Instead, he enacted delays and made it difficult for ShaMaran to conduct due diligence.
For example, he instructed FRC’s former General Counsel to informally provide them
with a data dump of approximately 6,000 documents in a flash drive. While on the
ground, ShaMaran’s representatives were left to tour field operations without Mr.
Mamulaishvili present. All in all, this made for a poor experience for potential investors
and communicated dysfunction within the Company.
15. As a result of what ShaMaran and its representatives were experiencing, Dr.
Adel Chaouch, the CEO of ShaMaran, and members of his team, as well as the lead
representative from Evercore, communicated with Mr. Nicandros and advised that Mr.
Mamulaishvili was standing in the way of a transaction with FRC and this would likely
kill their interest in FRC. When Mr. Nicandros consulted with Mr. Mamulaishvili in an
effort to advance things for FRC, Mr. Mamulaishvili insisted that Mr. Nicandros back off
of communications with Dr. Chaouch. This dysfunctional behavior was apparent to
ShaMaran and they ultimately backed away from working with FRC. A major
opportunity was lo
Steve denied they ever received any money from Green, and also denied he knew about the 2nd amendment that added the security interest in PSA and FEGL shares in exchange for raising the loan amount from $5mm to $10mm. Said he would not have approved it had he known. Don't know if he denied knowing about the original agreement. Didn't hear that part.
I think that's just s different form of the address because the Georgian govt has sent some emails to SN at a similar address. Why the company didn't cancel all ZM Frontera email addresses is an oversight.
This is pretty damning to ZM. It removes him as director of FRGC as of December 2020, yet he still purported to represent FRGC in the 21 minute court proceeding giving the assets to Green.
Not sure it's a good idea to show financial statements showing an insolvent company while claiming its worth "billions" or "$500 million."
Judge looks bored
back on
Re Sycric: you've captured the issue, but don't think a US judge can overturn the Georgian agency's determination. Frontera would have to challenge that non-registration in Georgia and the state's non-consent under the PSC in arbitration. The panel ruled against them on the first attempt, but the second attempt after submission of additional proof of operational and financial capability was never arbitrated. At the end of day, Frontera might win on getting an injunction against ZM pending the trial, but any reversal of the refusal to register the assignment can't be done from this court.
Paying Bryce 1000 per hour to glower at the screen.
You can see exactly what's coming. SN won't admit that he was "concerned" about Outrider's move to liquidate the Cayman companies including FRGC, but she's going to introduce evidence from California case to show he was and then try to tie that to the hurried attempted assignment to FRUS ahead of the liquidators.
ZM side introducing exhibits simultaneously that SN side hasn't seen. Hardball move.
Here comes cross examination. This should be interesting.
SN talking about "reserves." Won't be able to prove it.
this is the hearing on the temporary restraining order, and whether to keep it in place pending the trial
Just rejoined and getting a screen that says Rick Torres and no sound. Lunch break?
She's going to object to everything. SN not the best witness for accounting principles--consolidation of financial results.
Parties Coming On-line Now
As Mole has pointed out many times, though, normally lenders even on a secured basis require a CPR or reserve report confirming proved reserves in order to lend against. Frontera have never had such a report, except for a very old report done pre-listing, which would have to be updated based on the results over the last 15 years. The reports they've had since are "resource" estimates, not reserves, and won't normally attract much in the way of financing.