OK, now it looks like CLZ is going for reinstatement. CLZ is trying to get LDA to pay $400,000 for Kat Gap's restart. Nobody understands what they are doing and it's repercussions. This company is a total disgrace. For the last 4 years, they have lunged from one situation to the next, having had many financial partners fall by the wayside. Now they are claiming they will pull off some miracle, and finally get their act together after financially destroying those who initially backed them.
It looks like LDA will end up with 25-30 percent of the company for maybe providing $400,000 for Kat Gap. But I don't profess to understand this situation. I just can't believe that any self-respecting financial institution would have anything to do with them.
They have moved completely away from any member of the public shareholder having any role in what they do. Instead LDA & the others seem to now be their saviour. But it looks like the family might be able to get their trucks back to work soon, while the original shareholders look on in disbelief. If ASIC & the ASX reinstate them back to trading, it will be a disgrace. What they are trying to get people to believe, is LDA will fire up the Gekko, and they will be able to deliver the gold to Au Resources. And if they can't AuResources can take over company assets, that just happen to have already been mortgaged to a series of short-term moneylenders. How this company is not trading insolvent is beyond me . A company that is dependent on financiers not calling in loans on 36 per cent interest cumulative) is beyond belief. Many of these loans have expired terms, and could probably be called in at any time.
What is a starter hole in the ground worth anyway & a used Gekko, when another company EMC just paid $962,000 for a used Gekko?
Soon at the AGM there will probably be about 50 million shares issued at eight-tenths of a cent. The on-market buyers may end up owning them at a tenth of a cent, which is a 20 percent profit realized by sellers.
For the last 4 years, it's been the same game for CLZ. Issue as many shares as possible on and off-market, then cancel them by consolidation.
Let's start a competition for the worst company on the ASX, but it won't be much of a competition as we all know who will win hands down. At this point in time, it looks like LDA is their short-term 'white knight', who might tide them over till they can get organized, and pigs will then fly.
How many years have we watched these clowns, try to get their company together? Now they are going to try to upgrade their dinky-toy Gekko, so they can get the public to once again shower money on them. How anyone thinks they are going to make any money out of this is beyond me. Punch up a chart on Ora Banda OBM & Evolution and see what companies with astute management are doing.
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