Aim Guys,Having read your posts and having followed Aim v...

Aim Guys,

Having read your posts and having followed Aim v closely from time it was called Fraser Range Holdings -I make the following observations:
1. The financing appeared to be well in hand with debt, con notes and equity lined up with Banks and Westwind (Canadian broker) until a rumour of a takeover by North Sound spooked MF into trying to get an off taker to put cash in the tin, at the last minute, instead of having them support the debt component. It looked like a knee jerk reaction without referring to board or finance advisors
2. Normally Senior Debt is locked in first, followed by Con notes. Equity last (hopefully after share appreciation)
3. Screwing the timing of getting debt in place seriously puts back the timing of all the financing (would require shareholder approval again, senior debt takes time to finalise due diligence) which puts back the project construction. V. unhappy eng contractors. and shareholders.
4. North Sound had nothing to do with two directors and company sec. leaving. They left due to inability to work with MF due to his erratic behaviour, loose management style and continual “gilding the lily” . It apparently was a very hard decision. The only other option was to remove MF as MD and have a shareholder vote to remove from him from the board . This would have likley further delayed possibly damaged the financing.
5. Westwind has already mkted into North America with AIM and MF and will not want to see this fall over – the sooner they put their own Director on board to safe guard the project the better. Note: the company is still trading without the required three directors on board - another indication that MF doesn’t know much about corporate in’s and out’s - decision they make without the right number of directors puts the company in a predicament. Frank Brewer would also not like to see this fall over but has probably suffered from the MF over sell for too long and could be ambivalent, IMHO.
6. Positives: Nothing wrong with project or mine builders or contractor. Solid people in the mine manager and contractors I’m sure they are very frustrated.
7. Problem: No money in tin = no further building of mine= serious delays in producing conct. Prob v. late 2008 now.
8. Long term experience with speaking with MF means you should take his enthusiasm with a grain of salt - he seriously stuffs dates/ times and always over promises and under delivers. Would you let him manage your $20m in cash?

Rimmer