Ann: Removal from Official List, page-139

Thank you for the great in depth reply, I appreciate it...... "thumbs up" from me, but, help here is required again if you can:

When you get that feeling something that read previously didn't quite make sense but it slips into the back of your mind, but resurfaces at some point.
Winmar entered into a HOA with Kampangwe and Muya Resources to acquire a portfolio of highly prospective Cobalt Exploration licences, as such US$500,000 (A$677,425) transferred (April 2018) to the company DRC lawyers Pelesa and Associatesto be held in trust for the acquisition of the licences. Subsequently, Winmar elected not to proceed with the licence acquisitions and are seeking recovery of these funds from its DRC lawyer, the company accepts that there is certain costs incurred during the holding period which they have agreed to cover to the extent that they are reasonable.

It could be my lack of comprehension of the English language, or it is a poor descriptive and/or ambiguous sentencing in the accounts?

HOA is with Kampangwe and Muya Resources, we transfer A$677,425 to the company lawyer to be held in trust, the cost incurred would be payable to Kampagwe and Muya Resources as they are the owners of the licences, but on page 22 of the half yearly accounts for period ending 31st Dec 2018 it states, "the Company and Pelesa and Associates Law Firm are in dispute for what are reasonable costs"
https://www.asx.com.au/asxpdf/20200313/pdf/44g1th98hp7nn9.pdf
Scratches my head #1
(a) why are the company in dispute with the lawyers? weren't they just a vehicle for the trust fund? and shouldn't the dispute be with Kampangwe and Muya resources?
(b) as the decision had not been announced that the company was withdrawing from the acquisition of the mining licences (HOA above) until it was buried in the March quarterly (released 7th July 2019) how can this money in trust, be impaired in the half yearly accounts for period ending the 31st Dec 2018? some 6 months earlier?

Scratches my head #2
Pursuant to the HOA with the African Holding Investment Company, Winmar paid an initial amount of US$500,000 (A$694,515) as per the terms of the acquisition of the processing facility.

- contradicting statements in financial reports:
Page 23 of the half year financial report for the period ending 31st Dec 2018
Winmar paid a further A$714,145 to African Holding Investment Company to secure the JV venture agreement to operate the facility
https://www.asx.com.au/asxpdf/20200313/pdf/44g1th98hp7nn9.pdf
Page 33 of the annual financial report for period ending 30th June 2019
Winmar transferred A$714,145 to its Winmar Resources Congo SAU bank account - Winmar Resources Congo SAU is 100% owned by Winmar Resources, if the company indeed transferred it to their own bank account then surely they can just transfer it back?
https://www.asx.com.au/asxpdf/20200605/pdf/44jf75100wtmf5.pdf

Here is the real kicker:
As at the date of this report the company has elected not to proceed with the JV (it was added into the report as events subsequent to period end) and the company will endeavour to recover these funds. As a consequence, the company has fully impaired the amount paid at 31st December 2018 resulting in an impairment expense of A$1,408, 660.
The date of that report was for the period ending 31st December 2018!! still doesn't make sense why the half yearly was not released until March 2020, there was a hell of a lot of "subsequent to the period ending" added into it - shakes my head, and the amounts were impaired in the DEC half of 2018.
Skimming through financials and I originally thought that it was only the $1,408,660 (initial payment A$694,515) and (further payment A$714,145) that was impaired, not the case as that was only for the JV of the processing facility, add in the impairment of withdrawing from the HOA for the mining licences $667,425 makes a combined total of $2,076,085 impaired attributed to the withdrawals of both JV agreements, but they are trying to get it back, right?

That is only the amounts for securing the facility and licences, due to the difficulty I have following the quarterlies, half year and annual financials of the company I cannot estimate the sundry costs of these JV's if you try and take into all of the "in country" appointments, the consultants for all the studies, due diligence, air fares, accomodation, food & entertainment, interest on borrowings, fees and what ever else, not forgetting the shareholders wealth depreciation either, the mind boggles.

Maybe the light still flickers?
Changes in the Top 20 - off market movements, some in some out......


Cheers