OGX was not trading insolvent before it went into VA
how can it Be insolvent when Cardesian gave them 12 months payment grace?
apparently the auditors signed it all off As a going concern.
what I was told was the ASX was unhappy that more than half of the $5.4m fully underwritten rights issue was going to Empire and Magna as fees and debt repayment and only $600k would actually be sent to Brazil. Management refused to budge and when they tried to bargain with Cardesian to get a cut in the debt and got a black eye they Walked away.
i was also told that empire sold $150k of shares for Orinoco as part of empire’s announced equity facility and never sent it to Orinoco despite repeated pleas by the then CFO Andrew Longo that the money is Orinoco shareholders and not Empires!!! Scandalous. Apparently mr Longo got sacked for making a fuss about that....he deserves a medal frankly.
basically Greed got the better of them and it probably didn’t help that certain unhappy shareholders got in their ear and made conspiracy theories about the tailings (what happened to the 1350 als samples at 21.7 g/t - why didn’t they report those???). hmmmmm.
now we are all suffering just as the gold price is going to $US2000/Oz
how many times do you see that. Happens all the time - Greed and Fear right at the bottom.
thanks MOK and Adrian Byass!
Bnw
OGX Price at posting:
0.3¢ Sentiment: Buy Disclosure: Held
