Ann: Notice of Demand in respect of Chillagoe Acquisition, page-7

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02/04/20

16:24

Post #: 43845005
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Originally posted by garndo: ↑

The ASX release from CSD doesn't make sense - Auctus are suing CSD for $4.325m, which CSD says is the break fee plus interest on the deposit:

Break fee = A$1m
Deposit = A$2m

The deposit was supposed to have been paid on or before 7 Feb 2020 - so how you get A$3.325m interest (A$4.325m less A$1m deposit) on a A$2m deposit in a ~ 2 month period is beyond me. I would guess that CSD are being sued for the deposit + break fee + interest + costs. It would then come down to how the agreement has been worded - with each side being lawyered up.

In the scenario where CSD don't win the case - more intriguing is the fact that can CSD pay? As at 31 Dec CSD had A$0.521m in cash plus an undrawn facility amount of A$8.7m (total facility of A$10.65m less drawn amount of A$1.95m).

So total financing available to CSD as at 31 Dec was A$8.7m in an undrawn facility plus A$0.521m in cash = A$9.221m

CSD put their operations on C&M at the end of this quarter, so that would indicate that their performance during the Q was less than stellar (lost cash) - the question how much cash?

It is possible that should Auctus win - then CSD will have to pay Auctus A$4.325m. You would hope that CSD would have the ability to pay this!

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That is, of course, your opinion.

We can talk about this till the cows come home to no effect.

Maybe best to wait till we hear the facts from the co?

CSD Price at posting: 12.5¢ Sentiment: Buy Disclosure: Held
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Ann: Notice of Demand in respect of Chillagoe Acquisition, page-7

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