Ann: GXY: Acquisition of Senior Secured Debt Facility, page-61

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WhiteGoldLith

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27/08/19

21:52

Post #: 40183711
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Originally posted by BabaRoga_space: ↑

I'm speculating here, but logical thing for GXY and A40 large shareholders would be:

For GXY to absorb A40. By the way od A40 shareholders getting some GXY shares.

GXY to shut down Bald Hill and fix the plant (it has experience and $).
In the meantime service Bald Hill offtake partners with excess product that GXY offtake partners haven't been able to buy.

Once demand for supply returns to normal (or prices increase) GXY would hopefully optimized the plant to be profitable as well.
There are also A40 tax losses GXY can use.
I think something like that has already been negotiated with A40 major stakeholders (who approached who is irrelevant).

I think GXY using it's debt facility and not cash indicates that it intends to take over A40 debt for longer period and service it itself.

It makes no sense for GXY to offer cash TO or let the A40 go bankrupt and then try to aquire assets.
And it certainly doesn't make sense for A40 major stakeholders to end up with nothing in potential liquidation.
They'll have better chance of clawing back some of their investment i Bold Hill through GXY then through A40 atm.

That's my 2 cents

Expand

Without the mine operating well at a profit then what is it really worth to creditors. It's only worth something if it valuable to someone else but GXY. It looks like GXY has made a masterstroke move here to own all of A40 one way or another for a pretty small investment. Creditors may end up getting not much at all.

A40 Price at posting: 8.2¢ Sentiment: Buy Disclosure: Held
4 Upvote

0 Great analysis

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