Glencore were the ones that called in the debt and sent the share price into free fall. I remember speaking with the Chair and other members of the Board who at the time were stunned as Glencore were all over the build of the Hera plant. They approved everything. Then tried to do a 'cheap' bankruptcy takeover.
It was Pacific Road Capital, Paul Espie and later Susie Corlette that came in as a white knight and took on Glencore and financially supported YTC at the time. Pacific Road much later sold down their holdings once the company was financially and operationally secure.
December 05, 2013
YTC Resources Limited (ASX:YTC) announced a private placement of common shares for gross proceeds of AUD 25,000,000 on December 6, 2013. The company will issue the shares to new investor Pacific Road Capital Management Pty Limited in two tranches. The company will issue 58,800,000 shares at AUD 0.2434 per share as part of the first tranche for proceeds of AUD 14,300,000. On closing of the first tranche, the investor will hold 17.96% stake in the company.
Thankfully the company is in an enviable financial position with an FID for Great Cobar next in line for development and we are spoilt for choice with our own potential developments without needing to go down the M&A path. They might one day but they have a lot on their plate now.
All the best.
KKR
AMI Price at posting:
18.5¢ Sentiment: Buy Disclosure: Held
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