Please bear in mind that the company most likely to lose from the CP deal was CC and its directors, some of which are ex Barclays who by the way are also the bankers for CC. So you are entirely right Burratipi. They would not be able to pick up a fire sale as they are desperately trying to. Clever of them to make a 5mill loan and then withdraw at the same moment that DML lenders clamped down.. isn't it?
For the last two years CC have been happily telling the entire Botswana community that they will pick up the plant and the Mango NE 1 ore deposit (which joins CC Zone 5) when DML goes under at a bargain basement price. Offers touted locally in rumor from the CC side were so low that they weren't worth looking at. You should also know that while CC have a nice ore body 600m of high grade ore is owned by DML and at depth that extends back into DML ground.
In my mind there is an underhanded deal going down here and its not on the part of DML or its management who managed, despite the current downturn in the mining sector, and the current low copper price, to secure enough money from CP to pay back CC, offset the other debt and send the company back into positive by going underground where it needs to go for the benefit of its shareholders. As to directors within DML lying.. I cant see it.
Please remember that this is voluntary administration and not liquidation.. there is a difference and there is still a chance.
DML Price at posting:
1.9¢ Sentiment: None Disclosure: Not Held
