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1.9¢ navarre minerals limited

My understanding is that Lind Partners is not a creditor but an...

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217 Posts.

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19/06/23

21:02

Post #: 68366081
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Originally posted by Gwaihir: ↑

There will be nothing remaining for shareholders, because the debt levels are too high, they owe tens of millions to people like Lind Partners and Evolution (environmental bonds).

Even if they were able to sell everything, it still would not cover the debt repayments.

Lind Partners often call these things in, signing with them was a death knell signal.

Mt Carlton may well be stranded, because no-one else previously bid for it except NML, so I don't see what will be different next time. Absolutely no-one will want to take on $25 million of environmental bonds, which is a crazy amount.

The mine is just not ever going to produce enough to pay off the environmental bonds, not given the AISC, including the cost of Australian labour.

And I don't ever see the QLD government agreeing to waver the cost of the environmental bonds either, so I think Mt Carlton will just sit there for a few years and NML will totally collapse without any restructure or recapitalization.

The cost of environmental bonds helped kill this one, together with the naivety and ego and selfishness and ineptitude of the directors and management. They were simply incompetent.

You may find that they get a few pennies for Tandarra and the VIC assets, sold for practically nothing to CYL and another explorer, but it will only be peanuts, and never enough to help the company survive.

Interestingly, the question for the QLD government is, who is going to have to pay for the environmental restoration? Will they hold Evolution responsible still, which means that by going under, NML have lumped EVN with a $25 million debt responsibility. I bet that makes EVN happy, so they'll be looking for another sucker to take on the environmental bond debt, good luck with that though.

Gold at an all time high, and a once past producing high quality mine, and the company goes under, who would have thought eh. The technical director obviously didn't know how to look for more gold.

So ...... as for the director who bailed right before the administration, well ..... all I can say at this end of the ASX market is that it was a cowardly effort, but this end of the market is populated with many characters who have no intestinal fortitude or ethics or abilities. You could do worse that add the names of these directors on to your ASX black listed group.

Luckily I only lost 3k, and I've made over 100k on Leo over the past 6 months, so I'm not too badly off, but I hate to lose, I hate it with a vengeance, even losing a single cent, and especially when it's caused by total incompetence, it just gets the acid in my stomach boiling and the old ulcer begins to pain, and I get angry, very angry.

I've already contacted the Administrators, I want a letter right now from them, saying the company has gone into administration and there is very little likelihood of it trading again under a restructure or recapitalization plan, so the I can claim my loss as a tax write-off this financial year. I'll let you know when I get a reply, and what that reply is.

Cheers,
Gw

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My understanding is that Lind Partners is not a creditor but an investor who prepaid for their shares at the Subscription Price defined in the announcement on 7 Mar 23. “There is no security provided by Navarre to Lind in respect to the Agreement and there is no interest payable.” I wonder how much power Lind Partners could have in the Administration process.

The 28 December 2022 announcement - NAVARRE SIGNS NEW OFFTAKE CONTRACT AND FINANCE FACILITY, SECURES EXTENSION TO BOND FACILITY AT MT CARLTON states that:

“The facility has a maturity date of June 2023, and Glencore has security in respect of the Mt Carlton assets.”

“Evolution Mining has agreed to a revision of the amortisation schedule to now extend out to June 2025, at which time the bonding for the operation will be fully cash backed by contributions made by Navarre over that duration. Evolution Mining will maintain its first ranking creditor status.”

Evolution Mining and Glencore are the two largest creditors and will ultimately determine NML’s fate. If gold, silver and copper prices are trending up in the next 12 months, it is not impossible for the administrators to work out a win-win DOCA that maximises the creditors benefits by allowing NML return to trading rather than fire-selling its assets.

I don’t believe the administrator can issue a letter before creditors' meeting for shareholders to declare capital loss in this financial year.

NML Price at posting: 1.9¢ Sentiment: None Disclosure: Held
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