Its hard to read this one. I don't know who the major lender is. If someone does please let me know.
We know that a condition of the $ 10mill tranche is EIS approval. That is at the most 2 months away. We know that there is a mineral resource that can be exploited and we are at production stage. I am hoping that the major lender agrees to drip feed the company for the next two months until the EIS comes through then the remaining funds in the tranche can be released. I would assume that conditions for this would include the mothballing of any planned work and continued reduction in overheads until EIS is approved. As the major funder I would also request the immediate resignation of Illingworth and immediate installation of Ren as chairman. I sincerely hope that Ren is also talking to the major lender with or without Illingworth's knowledge / consent. It was Ren that wanted to buyout the remaining shareholders earlier this year. I don't believe Ren would want to see this operation in administration. He loses control and it would cost him a lot more to purchase the operation than buyout the remaining shareholders. It would also be an embarrasement to Ren to have a failed operation under his belt in his own backyard (NT). Of course Ren could make an on market takeover for all outstanding shares of the company for say 5c right now, take full control and fund the operation himself.
Unfortunately I have no faith in Illingworth to do the right thing by shareholders. He has hardly any skin in this game and loses virtually nothing. I hold substantially more shares than him. As far as a class action against directors I believe it should be investigated if this thing goes pear shaped. We shareholders should have been made aware of Ren's approach to the Board the buyout the remaining shareholders earlier this year. Such disclosure would have had a material effect on the SP and influenced the behaviour of some shareholders who would have sold to Ren.
SHD Price at posting:
2.7¢ Sentiment: Hold Disclosure: Held
