Macarthur holds 21.46% of the issued equity and is the largest shareholder of Infinity, which is an Australian mining exploration company focused primarily on renewable rare earth elements in Western Australia. Macarthur’s spinoff to Infinity Mining, of its non-core renewable energy assets in 2021 has allowed the Company to commit its full focus to its flagship Lake Giles Iron Project in Western Australia. See https://hotcopper.com.au/threads/ann-infinity-mining-strategy-update.7760629/
...The Line of Credit... Liquidity and Capital Resources At September 30, 2023, the Company had a net working capital deficit of $3,559. On 29 August 2023, Company entered into an unsecured loan arrangement with a shareholder for a total facility of $1m. As at 30 September 2023, $500,000 had been drawn down from the facility. The facility is repayable on 28 February 2024, and incurs interest at 10% per annum. The Company anticipates its cash expenditure requirements will remain stable as the Company continues limited exploration and evaluation activities. Upon project financing being raised, expenditure will significantly increase. See page 6 of 20, financing activities https://hotcopper.com.au/threads/ann-interim-financial-statement-to-30-june-2023.7523584/
Shareholders loan 500,000 - On 29 August 2023, Company entered into an unsecured loan arrangement with a shareholder for a totalfacility of $1m. As at 30 September 2023, $500,000 had been drawn down from the facility. The facility is repayable on 28 February 2024, and incurs interest at 10% per annum. See page 16 of 17, shareholders loan https://hotcopper.com.au/threads/ann-interim-financial-statement-to-30-september-2023.7698574/
Shareholders loan 1,000,000 - On August 29, 2023, Company entered into an unsecured loan arrangement with a shareholder for a total facility of $1m. As at December 31 2023, $1,000,000 had been drawn down from the facility. The facility is repayable on February 28, 2024, and incurs interest at 10% per annum. See page 15 of 16, shareholders loan https://hotcopper.com.au/threads/ann-interim-financial-statement-to-31-december-2023.7847647/
The Specific Security Deed This document relates to an extension granted to Macarthur to repay the loan faility. All that is missing, is the terms of payment and term of the loan. Included in the document, is a back to back option, that Macarthur has agreed to. The back to back option has nothing to do with options or share securities, it simply gives the Lender leverage over the security. Rather like saying, I gave you time to pay, you didn't, so now we're doing it my way.
Scenario: If Macarthur pays back the loan, within the agreed time frame, then the terms of the loan are considered satisfied. All this depends on Golden Valley making pre-payments to Macarthur, as agreed within the Hematite offtake terms. If Golden Valley defaults, then so does Macarthur. Shares will then default to the Lender. Game over. If the share price goes up, Lender wins, if it goes down, Lender waits it out.
Scenario: The Lender holds security (escrow) over the shares in Infinity Mining held by Macarthur. Assuming Golden Valley makes pre-payments as agreed, then Macarthur will make payments and retain ownership in Infinity shares. However, if the price of lithium suddenly spikes and rises above the original share purchase price (say 0.20cents) and it now sits at 0.80cents, the Lender (or anyone appointed by the Lender to represent him, as outlined in this document) has the legal right to call in the outstanding loan first, and the shares then default to the Lender. Or they let the loan play out, Macarthur pays the Lender and retains the shares and makes a profit. If the shares drop in value, that onus is then on Macarthur and they wait it out. https://hotcopper.com.au/threads/ann-notice-of-initial-substantial-holder-a-m-peden.8054724/
