GBG gindalbie metals ltd

it is not what they would like us to beleive, page-8

  1. 777 Posts.
    Hws,

    Thanks for your interpretation of the funding announcements.

    You write

    "As part of the agreement Ansteel agreed to provide bridging finance for the next 12month, whether they put "ALL" or not, it obviously will not be an open cheque book (what happens it it takes another 5 years - wait for the rumours). I expect there is a review clause instead of a finite number."

    5 years is not 12 months, so I would have never expected the bridging loans to extend beyond 12 months. If the binding memorandum had a limit on the amount of the 12 month bridging funding why didn't they let shareholders know the quantum of this agreed funding and just drop the continued reference to 12 months in their 2 July announcement? You would have to agree that the amount of the funding is a more important fact than the duration of the funding.

    You also write

    "KML have received $84m, they called it an installment which as far as I am concerned it is the first that was required, nowhere have they said there would just be one or, they would all be the same amount etc. I believe they will recieve them as needed an unspecified amount."

    Do you think any future loan instalment will come with further dilution of GBG's interest in KML? If so how come this has not been made clear to shareholders in the 2 July announcement? If prior to the 2 July announcement GBG and Ansteel had agreed to any dilution arrangement for KML beyond the 2.16%, don't you think shareholders have a right to know?

    If the 12 MONTH bridging loan arrangement still stands (with no further dilution to GBG's interest in KML), as you seem to suggest, I would consider buying my shares back, as this was the basis for my previous held averaging down investment strategy in GBG. Until the details of this funding arrangement are made clear again by the company, I'm much happier sitting on the sidelines.








 
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