Blabber I guess all you can guage is what was said in the announcement - which really is open to interpretation:
"The facility is for a total value of up to approximately $1.75 million. Approximately $750,000 is available by way of a general facility for working capital purposes. The remainder of the Convertible Note Facility is accessible subject to resolution of the Offtake Agreement delivery schedule issue with LN Metals. This amount will now be available for drawdown and for payment to LN Metals upon successful completion of the Trilogy Assets sale."
The way I see it is that the "remainder of the Covertible Notes Facility" (ie $1m) will be available for payment to LN Metals. So one assumes all, part, or even the possibility of more is needed to settle the Offtake dispute. I am guessing that the settlement figure is around the $750k mark.
You are right Blabber in that PRH management finds it very thin on disclosure and difficult to be clear about anything since Jason took over the reins. Lack of transparency about any dealings or operational matters whether it be the Offtake Agreement, suposed MOA's with banks on funding, overseas placements (which were further discounted after the event), drilling that has been completed last year and never reported upon,...etc etc.
Confidence in management is essential and telling shareholders the truth whether good or bad is a pre-requisite for this. It makes you further doubt their ability to achieve the best result for shareholders and possibly helps explain their inability to secure funding for the Phillips River Project.
Clearly SLR and LN Metals don't have doubts that it is a viable proposition and even SLR will have to raise funds (granted they are in a better position to) to develop Phillips River.
I am hoping the independent experts report to shareholders relating to the proposed assest sale will clarify the muddy waters. Any moves by other interested parties can probably be expected after the release of this document and prior to the shareholder meeting.
PRH Price at posting:
1.9¢ Sentiment: Hold Disclosure: Held
