How has Acclaim Exploration managed to survive another quarter? The Q1 cash flow statement shows that proceeds from borrowings of $278,000. It appears that the money was borrowed from Anthony Hamilton's Eldore (EDM).
What about this quarter? As noted by Anthony Hamilton in Acclaim's response to ASX concerns about cash flow, AEX has short term receivables of $2.1 million. The half yearly report states that the money was lent to Modena Resources Ltd (MDA) as an unsecured loan at 10% repayable on or before 30/6/11 (balance $1,847,977). It is worth noting that Anthony Hamilton is the Chairman.
Does Modena have the capacity to pay? The cash at bank value cannot be determined because Modena has incorrectly re-submitted the Q4 cash flow statement for Q1. The Q1 activity statement states that the company still has a $9,000,000 credit facility from Truestone Capital. The company has also called a general meeting to approve, among other resolutions, the issue of shares and free attaching options on conversion of a converting loan of up to $1,900,000 (resolution 6).
Is it possible that Acclaim's loan to Modena will be converted to equity?
How has Acclaim Exploration managed to survive another quarter?...
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