Turville, yes your statements are 100% correct
All information below is contained in CSD announcements ( not guesses or opinions)
Si He Tong, a Director of the Company, holds 100% of the issued share
capital and controls SPII, which in turn holds 100% of the issued share
capital of SPM (assuming cancellation of the Company’s SPM Shares).
Mr Tong is a director of both SPII and SPM.
The Convertible Notes more significant details are as follows:
• 165,000,000 Convertible Notes to be issued at 10 cents each ($16,500,000 in total);
• Interest rate 7% pa payable quarterly in arrears from the date of issue on the last day of
the months of March, June, September and December in each year;
• Unsecured;
• Maturity Date of one year after date of issue;
If the Convertible Notes go through to Maturity, interest is payable by CSD of
approximately $1,155,000 and if not converted before Maturity, CSD will need to repay the
Convertible Note Holders.
CSD does currently not have such funds and may well find itself in financial difficulty.
CSD is planning to complete a DFS, arrange finance and enter into tin production in 2015 and if this eventuates, CSD may well have cash funds available to repay the Convertible Note Holders.
CAPEX $76m:
Mr Tong has clearly stated that SPII has no intentions of contributing further capital to CSD( announcement on 1/1/2/14)
CSD has been in advanced discussion for past 12 months to raise funds as stated in all their announcements
''It should be noted that CSD will need to raise new capital in the 2014/15 year and the
following financial year to meet its liability obligations and for working capital.
Shareholders approved to allow the Company to issue further shares to raise new capital as
noted above but the final number of shares to be issued (if any) and the issue price has yet
to be determined. It is also planned to raise new debt and/or possible equity raisings in
2015 but there are no firm plans for amounts, timing and split between debt and equity.
There is no guarantee that all funds will be raised or raised in 2015.''
DYOR
