Ann: PLS: Conditional Agreement to Acq. Altura Lithium Operations, page-454

It sounds like AJM were attempting to sell the company, which was totally unrealistic with that level of debt.

It's just another example of the management incompetence that ran this company.

The management also had no risk mitigation understanding, let alone a strategy, which is yet another of the many examples of business incompetence here.

What is the first thing you do when attempting a financing restructure? You model a failure, and then put in place, (at least some) risk mitigation plans. In other words, protect shareholders by bundling up some of your assets, like the gold projects, so in the event of a failure, at least something remains.

As they say, these guys couldn't organize a shag in a brothel, let alone run a company profitably, or negotiate a decent finance rate at the start of the project. IMHO they had no idea of risk management in business - not a clue, right from the start, always destined to fail, which is now clear to some of us in hindsight. Hindsight is a good teacher and educator.

All the directors should have been sacked long ago, and a new board instated, possibly including some of the good hands-on technical and ground staff at the project. The directors killed this company, with their business incompetence, but the staff on the ground and the technical people were good and didn't deserve the fat cats they had running the show.

Gw