Ok, so firstly we can confirm that the proceeds of sale have paid off the sterling bank loan and the non listed convertible notes. The bank loan was i think between 3-4m, and the notes were 5.25m. That leaves them with between 2-3m cash at hand i would say. Will become clearer in the quarterly i think. So at this stage all that is left is the convertible notes not due until end of 2014, interest rate 9.5%, easily managed with the cash at hand. In more good news they have secured the $40m line of credit for asset purchases in the US.
AVD have repeated the line that they are looking at energy projects in a number of locations other than the U.S.
Even more interesting is the connection to PXR's purchase of the Coal site in West Papua which saw the PXR SP surge late last year. (now a market cap of about 15m - pre acquisition about $2m) As far as i can tell, the 75% owners of the site (or option) were Primecity Pty Ltd. PXR have acquired them completely.
As part of the consideration, the owners of Primecity were paid in shares. And the five owners of Primecity listed include Formaine Pty Ltd, Spartan Nominees and Fay Holdings.
Fay Holdings is Anthony Short, MD of AVD and Formaine is Gordon Sklenka, Non Exec Director AVD. Sklenka is also exec director of Spartan Nominees.
You dont get a closer connection than that.
While this connection in itself doesnt suggest any decision by AVD, it does mean that emerging markets and coal would most certainly be on their radar.
Either way, these guys are now in a position to move forward with confidence. May be some interesting times ahead.
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