Pretty much summarises how we are all feeling and why the CR failed. I still believe Shareholders want to progress the project in Uruguay. I don’t think they want the current Management at the helm. The problem is, I doubt we can afford to remove them yet alone encourage competent Management to replace them with no cash available. Unfortunately Exploration Companies rely heavily on shareholder funding and as it stands we have taken that option off the table. Can they salvage the situation, Yes I believe so. I had another read through the accounts to 31 December 2017 released 12 March 2018 last night. This potential situation was flagged by the Auditor and to some extent provision to overcome insolvency was initiated 28 February 2018 (Subsequent Event) with the arrangement agreed with Newforce to forego $1.6m in outstanding drilling costs. I think they have the 2% royalty option or a 50% premium on repayment of the debt within 12 months or if not paid to substitute the royalty payment for 10% in the project. In summary I believe they hoped for the best but planned for the worst re the CR. At the end of the day they are intelligent individuals. Have poor decisions been made, Yes. Have we experienced a little bad luck, Yes. Could things have been done differently, Yes. Exploration/Drilling is a fluid environment and things can and do go wrong. It is easy to be an expert (using Google!) from the comfort of our keyboard. Very different at the pointy end of the Drill. At the end of the day shareholders made their choice and through non participation (and I am not saying what is right or wrong here) they have placed their investment under additional stress.
For the record, I would support the existing Management but I would like gaurantees in terms of completing the project. Of course I would like to see performance bonuses (for success) and penalties (for failing to meet budget and timeframe) applicable. I would also support a revised CR especially if a new drilling partner invested to cover part of the drilling costs. Ultimately, like everyone else I am unhappy to lose my money. I am unhappy to leave this one in the bottom drawer. I am unhappy for my investment to succeed or fail on anything other than the completion of the drilling programme in Uruguay. Having said that, if we can struggle through Spain provides a little comfort for the future......
Good Luck All
PRL Price at posting:
0.3¢ Sentiment: None Disclosure: Held
