Harlee7 - TTR have been the managers of the JV project. TTRs equity in the project was via issue of shares (which Extract sold at a good profit). You can refer to the terms of the JV by reading announcements at the time.
As managers TTR have always been a creditor of Extract. Given that Burnakura did not produce the positive cash flow that was anticipated Extract (given their poor cash position) has not been able to pay their share of capital and production costs as they fell due. This was a contributing factor I am sure to TTRs working capital issues in the 1st Quarter this financial year.
The position has now improved. Also, you can see from todays Extract cashflow statement that they have paid a considerable sum for production and TTRs project management. Not good for Extract as it takes the shine off the gold sales by not leaving much positive cash flow.
What gave you the idea that TTR was in debt to Extract?
In fact, Extract's management came very close to bringing TTR down. TTR used much of their profits from the small but successful RAV8 project to fund the development of Burnakura. Extract of course diverted funds to their Uranium project which left TTR holding the baby and short of any working capital. Colin MacIntyre (Peters brother) the then Chairman of TTR was I think sucked into the JV. Colin is no longer Charman of TTR (say no more). Word has it that Steve Sikiritch has been able to keep thing amicable between TTR and Extract during the Divestment Process.
TTR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
