Member Info for tomcat-14

let’s see if we get a tr-1 off trafalgar next month then... or granted a covid-19 loan repayment holiday...
if we have repaid any more... it should arrive monday... last notification 7.05% on 18th march... so both april and may could have been a repayment holiday... (did we miss that april non-payment or did i/lse miss another rns)...

no further sales since last thursday then...

https://www.cadenceminerals.com/wp-content/uploads/2020/02/Corporate-Presentation-KDNC-Jan2020-PPT-PUBLIC.pdf ...
page 7 ivy... you’re right... looks like #3 is running in last place along the project timeline to production...
at least we should now get an update today... on our current holdings in emh... with the news of their preliminary mine permitting... that should answer your question... if the recent mms rns didn’t make it clear enough...

i bet whi have seen that before they did their broker note... i can’t get into it here by the way... password not working or something... there are dates in the jrp... the study must have been done before those dates... for it to be part of the jrp valuation...

do you know what?... that may actually give them the facility for indo to take their pba shares upfront... rather than when they transfer the $49.14m debt... paying us in cash or shares if they do default and don’t transfer the debt later... on or before dipb...

how does that work in option b)... when we already own 49% pba... cash only?... to make up the difference to kdnc between that price and market prices of the ore at the time it’s shipped... or is it 49.9% on top of the 49% we would already own at that stage...

e.g. indo do not transfer the $49.14m debt to pba... and we proceed with dipb having waived that condition... indo will then have paid $49.14m for... is it 1,718,338 tons of iron ore... $28.60/t... for which we get compensated by pba in cash or shares... is indo our 1st offtake by any chance...

any ideas on what indo defaults could be?...
which if triggered causes an upwards adjustment mechanism to allow kdnc to either receive cash from pba or receive additional shares in pba... up to 49.9%...

kdnc’s commitment to the future project dipb financing $3.5m + $24m...
kdnc default 1... kdnc don’t deposit $3.5m into the jrp escrow account after dipa financing... indo have 12month option to buy kdnc 20% pba shares for $3.75m...
kdnc default 2... indo seek further investors/investment in pba... and kdnc do not take up their right of 1st refusal... a.n.other pay $24m into the jrp escrow account and receive 22% pba shares... indo have 12month option to buy kdnc 27% pba shares for $9m...

how the remaining $24m dipb financing is raised... that’s the question...

a) indo pay $24m into the jrp escrow account and receive 22% pba shares... and at dipb financing indo transfer the $49.14m debt to pba and receive 51% pba shares... resulting in kdnc 27%/indo 73% jv ownership of pba at the conclusion of the dipb financing...
b) indo seek further investors/investment in pba... and kdnc take up their right of 1st refusal... kdnc pay $24m into the jrp escrow account and receive 22% pba shares... and at dipb financing indo transfer the $49.14m debt to pba and receive 51% pba shares... resulting in kdnc 49%/indo 51% jv ownership of pba at the conclusion of the dipb financing...
c) indo seek further investors/investment in pba... and kdnc do not take up their right of 1st refusal... a.n.other pay $24m into the jrp escrow account and receive 22% pba shares... and at dipb financing indo transfer the $49.14m debt to pba and receive 51% pba shares... resulting in kdnc 27%/indo 51%/a.n.other 22% jv ownership of pba at the conclusion of the dipb financing...

i’m quite happy to assume that even up to this stage... indo have not yet been issued any pba shares... indo not having contributed to the jrp project yet...
but... by means of the $49.19m debt held as pledge guarantee over some of the ore... they can transfer that debt at anytime after the dipa finance... in exchange for 73% pba... as it would be at that time...
back to the $24m...

to complete the remaining dipb financing... a further $24m needs to be raised by pba and deposited into the jrp escrow account... but that’s not happening until the project is much further down the line... much further derisked... and it’s valuation can financially support the acquisition of 22% pba shares for $24m... but to do that... they need to commence the rehabilitation studies... which is what the $3.5m for 7% was be deposited into escrow for... as noted previously... whilst the $3.5m is part of the $27.5m jrp dipb financing... it’s needed upfront/now... so as that loan is released to dev to commence the rehabilitation studies... kdnc receive their additional 7% shares in pba...
this is the part of the problem we’ve been trying to decipher for the past few days... but i’m quite happy that it’s now solved for both scenarios... using registered or unregistered shares... which leaves the hard bit... the $24m and the bit bannor reminded us about last night...
the default clauses which if triggered causes an upwards adjustment mechanism to allow kdnc to either receive cash from pba or receive additional shares in pba... up to 49.9%...

the problem with indo owning 100% pba at the start... is that kdnc would then buy those pba shares from indo... it would be indo that then loans the cash to dev... the loan needs to be between pba (the jv investor) and dev (the operator)... as per the jrp... the loans are supplied to dev via the jrp escrow account... which dev will draw down from based on project expenditure i would expect...

the completion of jrp dipa finance being the first trigger... releases the $3.5m loan that pba have put into escrow to dev... transfers 99.9% dev shares to pba... and due to the fact kdnc put up the $2.5m into the jrp escrow account... kdnc are then issued their 20% pba shares...
on doing that... imo that then triggers kdnc’s next payment of $3.5m for a further 7% pba... that again will be deposited into the jrp escrow account...

that’s still the easy bit... regardless of which way pba equity is acquired... registered or unregistered shares...

the above $2.5m would have been released for payment of small labour creditors and allow the project to start shipping the stockpiles... if the banks had settled...

great find ob... i did tell you that the whole jrp is based on valuations at various points in the project development as it’s derisked... 2020/21 are the stockpiles... 2022/23 is the mine ramp... full production 2024... :)

glad you two agree on that now... i’ll copy my earlier post... in full this time... to show you the math...

Fri 21:23
although i would still prefer it if they did do it the other way... all equity raised from pba’s registered share capital... (assumes 1m registered shares again)...
dipa... 200,000 shares 20% at $12.50... 100% $12.5m...
dipb(1)... 70,000 shares 7% at $50.00... 100% $50m...
dipb(2)... 220,000 shares 22% at $110.00... 100% $110m...

raising the same $2.5m + $3.5m + $24m... $30m total... as per the jrp...

especially if you throw indo’s $49.14m debt in with that again... $160m...

i wish i could stop there but something else has come up... that we didn’t get around to yet...

i will be pretty sharpish... if it comes to 51% if they don’t invest the $24m...

i don’t think you need to escrow those... just hold them in treasury...

yeh... i did that one last night... fri 21:23... before you and bannor talked me around to using shares outside pba’s registered share capital...

it doesn’t work that way ob... not for me anyway... you wouldn’t get away with it i don’t think... us paying $12.53 for our 7% shares for $3.5m... and indo/us/another paying $55.64 for the other 22% shares for $24m... not in the same class anyway... the investments need to happen at different points in the value curve... so the $3.5m is committed early... similar to the $2.5m we currently have in escrow...

if you don’t want any dilution to us at dipb(2)... we just need the tiniest adjustment to my earlier post fri 20:43... basically to acquire our full 27% that we need at the end... during our $3.5m investment at dipb(1)...
dipa... 250,000 new shares allotted for 20% at $10.00... 100% $12.5m...
dipb(1)... 279,412 new shares allotted for 18% at $12.53... 100% $19.16m... cln or escrowed again?... awaiting those conditions to be removed for the remaining dipb investment later...
dipb(2)... 431,373 new shares allotted for 22% at $55.64... 100% $110m... /:

and as we seem to have the $110m 100% value back... that seems like the best of both worlds... i like this one best now... ;)