Ann: Poseidon and Aphrodite Move Closer to Gold Production, page-130

First 130 Last

Share
Profile

Follow
zebster

5,192 Posts.

2357

12/07/17

23:55

Post #: 25832775
Share

Originally posted by AlCp ↑

I think you need to re-read the KDR announcement, it's a convertible loan facility to KDR and nothing to do with the JV so it's KDR's money and they don't need to be told by SQM what to do.

This deal only goes into JV after condition are meant within the 2 years, and if not, KDR will need to issue shares to repay the loan, I am guessing LJ is still on the cards as this will allow them to meet the "continue to be advanced as quickly as possible" condition and also allow KDR to go into production as fast as possible, after that KDR and SQM can decide on building the multi-billions dollar processing and refinery plants.

"As an advance on the proposed joint venture expenditure contribution, SQM will provide a US$21.5 million (A$28.67 million) convertible loan facility to Kidman following execution of the formal documentation to allow the project to continue to be advanced as quickly as possible until all outstanding conditions precedent to implementation of the JV have been satisfied. In the event these conditions precedent are not met within 2 years from signing of the definitive documents, the parties may elect to extend the period for satisfaction of the conditions precedent or discontinue the JV. If the period for satisfaction of the conditions precedent is extended, SQM will provide further funding of US$10 million (A$13.33 million).

If the JV is discontinued, Kidman can satisfy its obligations to repay the convertible loan by the issue of KDR shares priced at a 10 day VWAP for the 10 trading days prior to the binding letter of agreement. The parties expect to conclude definitive JV documentation by 30 September 2017.

Extensive work has already been undertaken in relation to the negotiation of the definitive agreements. Once the conditions precedent to the JV have been satisfied, the balance of the US$80 million and the US$30 million payment to Kidman will be made by SQM.

Once SQM’s initial funding contribution is expended, the JV parties will contribute the remainder of the development costs on a 50:50 basis, unless either takes the option to dilute their project stake."

Expand

Oh dear...

I have read and re-read the announcement several times. If you think that the proposed convertible loan facility has nothing to do with the proposed JV... well, what can I say...

You even go to the trouble of quoting it yourself:
"As an advance on the proposed joint venture expenditure contribution, SQM will provide a US$21.5 million (A$28.67 million) convertible loan facility to Kidman..." [emphasis added]

If you think that KDR will be able to use those funds as they see fit, without any conditions being applied by the lender (SQM)... well, what can I say...

I'm going to leave it at that.

(Looks like we're starting to get some of the over-spill from the prawn nets. The skipper must be mighty pleased!) (lol)

POS Price at posting: 2.7¢ Sentiment: None Disclosure: Held
3 Upvote

0 Great analysis

Reply

Top Stories

3DA

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

PNN

Power gets set for 1000-metre maiden drilling program in Brazil

Quit before you're fired: Russia bans uranium exports to USA, duplicating extant US ban

US election outcomes: Key economic and market takeaways

First 130 Last

Add POS (ASX) to my watchlist

(20min delay)
Last 0.5¢		Change 0.001(25.0%)		Mkt cap ! $21.01M

Open	High	Low	Value	Volume
0.4¢	0.5¢	0.4¢	$4.293K	998.8K

Buyers (Bids)

No.	Vol.	Price($)
70	65426705	0.4¢

Sellers (Offers)

Price($)	Vol.	No.
0.5¢	3676277	13

View Market Depth

No.	Vol.	Price($)
69	65296705	0.004
63	42251923	0.003
16	39727935	0.002
13	33678647	0.001
0	0	0.000

Price($)	Vol.	No.
0.005	3676277	13
0.006	34531391	35
0.007	4252781	17
0.008	2455134	4
0.009	98928	2

Last trade - 13.58pm 18/11/2024 (20 minute delay)

POS (ASX) Chart

Ann: Poseidon and Aphrodite Move Closer to Gold Production, page-130

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

Power gets set for 1000-metre maiden drilling program in Brazil

Quit before you're fired: Russia bans uranium exports to USA, duplicating extant US ban

US election outcomes: Key economic and market takeaways

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Ann: Poseidon and Aphrodite Move Closer to Gold Production, page-130

Top Stories

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

Power gets set for 1000-metre maiden drilling program in Brazil

Quit before you're fired: Russia bans uranium exports to USA, duplicating extant US ban

US election outcomes: Key economic and market takeaways

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News