Ann: Trading Halt, page-107

I just had to have a word, the forum has been too interesting to ignore, haven't posted on TON for years, though have owned it a few times.

Two observations.

Firstly, in my industry if a CEO/MD allows the capital reserves of the company to fall below the total sum debt owed to the company's business critical contractors (one of which is the drilling company), then that is seen as financial negligence, and there is no way the manager would be granted a golden handshake of $600,000 or more. Maybe this is why every man and his dog wants to be a director of a small cap mining company.

Secondly, and quite logically, I believe the new board will (out of necessity) have to take a pragmatic view to solving the companies financial situation. They will do the sums on owed debt. How much do we owe the following;
1. drilling contractor
2. former MD
3. DFS contractor
4. working capital 6 months

To this end they will call and discuss funding with the following;
1. underwriter
2. S&P investors
3. chinese off take investors
4. major shareholders

And so the company management will then decide to take the hit now, deflecting the blame where they can, while encouraging a belief that better things will eventually come (and they may, who knows).

My guess is a renewed offer at 8 cents, maybe with an option or two thrown in, and with the underwriter lowering their commitment to $2 million.

In the end, TON could have done worse than follow the management lead of a company like Magnis, who seem professional, though I do not currently own them.

I am also wondering if pre-DFS information (ie. an initial draft) has somehow gotten out.

In the end, I think it will be the DFS that will define TON, something it will either sink or swim on.

Gw