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0.3¢ orinoco gold limited

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groundswell

2,527 Posts.

114

04/04/19

12:13

Post #: 37992158
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Originally posted by jonpg55: ↑

No they must meet and abide by ASX rule 12.2 to have the suspension lifted as this is the rule quoted on the suspension.

If you refer to the auditors statement located within the latest annual report on page 85 and dated 29/3/19 it states.

As part of our audit procedures, we have been unable to obtain sufficient, appropriate audit evidence in relation to the Group’s ability to continue as a going concern with respect to the following matters:

- the ability to obtain further funding under various funding agreements previously announced to ASX and the quantum of any further funding due to the possible existence of events of default arising under the terms of those agreements; - the likely future ability of the Group to successfully renegotiate or meet its obligations of $9.9 million under the Gold Stream variation as disclosed in Note 19 to the financial report as current liabilities; - the likelihood of the Group being able to meet its obligations in relation to drawn down convertible notes and the likelihood of future conversion of the notes; - the extent of any future forecast positive cash flows arising from the Cascavel Project; and - the ability of the Group to raise future funding which is sufficient to enable it to continue as a going concern for the relevant period.

The going concern assertion is material and pervasive to the financial report as a whole.

Based upon the above matters, we have been unable to obtain sufficient and appropriate audit evidence as to whether the Group is able to continue as a going concern and whether it will be able to realise its assets (in particular, its mine properties, property plant and equipment, inventories and exploration assets) and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report.

Rule 12 .2 states;
Listing Rule 12.2 – An entity's financial condition (including operating results) must, in ASX's opinion, be adequate to warrant the continued quotation of its securities and its continued listing.

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This is the crux of it.
And the odds are extremely high that it’s game over for this outfit in its current form.

This is a debt laden turkey that’s going nowhere and has been for a long time. Even at a zero market cap no suitor would be interested due to the debt.

OGX Price at posting: 0.3¢ Sentiment: None Disclosure: Not Held
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