A major debt matured on 31/3. they a number of choices:
1. pay it back with the cash held in bank. Outcome no debt but little cash to fund ongoing expenses. goes to the heart of the "going concern" issues and would need to raise capital or replace with new debt facility. there is no provision to extend debt under current debt deed.
2. Roll it over. Should have been known weeks ago that was the option they wanted to do. requires a new deed or deed of extension to be in acted.
3. Sell the liability to a JV partner in exchange for equity in MAR or (gulp) more equity in the JV.
4. It gets extinguished through a grab for cash in a merger with BCD.
The last wording on the JV's 31/3 deadline had a "should be finalised" attached to it so they were not confident as to the finalising of metallurgical test work in time.
Ok granted. But there is no excuse for not telling the market what the f they have done about the c/n. its not a moving feast, its a date bolted to the wall.
I went through mancala like a dose of salts last night;
1. they are seriously big end of town players. Xstrata uses them like mothers milk.
2. they go through a project like a dose of salts before they commit. No excuses given and no apologies ever with this crowd.
3. they like conrad a lot.
Getiing back to the debt. Sorry MAR, but you will disclose.
Flux
MAR Price at posting:
0.9¢ Sentiment: ST Buy Disclosure: Held
