I would have thought the indemnity puts SER (or their PI insurer) squarely in the frame. Event regarding the issues over retaining quality by finer grinding (thus reduced grinding capacity) they should have been forewarned due to statements about "poor front end design" of the original 1993 plant - they had historic live experience of the grinding/quality issues and should have sized the grinding capacity accordingly - just inexcusable.
As for the environmental issues; proper mining legal advice (CD is a lawyer - Wilsons) should have informed us that the old Approved Development Programme (ADP) could not be transitioned to current SA mining legislation (Mining Act 2011) and as a consequence they did not have mining approval (this was material information which should have been in the prospectus). I bought into VXL due to being assured in 2013 that all mining approvals were in place and it was simply a matter of re-conditioning the existing plant. The necessa
ry documents to seek approval were not submitted until December 2014! but we were being assured during 2014 that production was imminent (with this and the plant capacity debacle nearly 2 years has now been squandered on this - i.e the first mover advantage).
VXL Price at posting:
11.5¢ Sentiment: Sell Disclosure: Held
