Yet, once again, Satimola regrets that it is obliged to set the record straight as regards information communicated in KPC’s announcement to the market on ASX dated 6 March 2015, entitled “Market Update – Satimola Loans” posted on the ASX website on 9 March 2015.
The following rebuttal to the aforementioned KPC Announcement of 6 March 2015 is available for download at www.satimola.com as well as below in Caps:
KPC Announcement of 6 March 2015 “Market Update – Satimola Loans”
“Kazakhstan Potash Corporation Limited (ASX:KPC or Company) would like to advise that a US$1.5 million loan has been made available by KPC to Satimola Limited (Satimola) which has been actioned by the KPC subsidiary in Kazakhstan, Batys Kali LLP. This loan forms a small part of loan funds advanced by KPC to Satimola. The terms and conditions of the US$1.5 million loan has been determined in a loan agreement dated 22 January 2015 between Batys Kali LLP (the Lender) and Satbor LLP (the Borrower), the Satimola local Kazakhstan subsidiary and sub-soil rights holder.
Under the terms of the loan agreement, Satbor LLP must provide a list of usage of funds prior to any funding being advanced by Batys Kali LLP. To date, Satbor LLP has provided an acceptable detailed list after review of an initial list for usage of funds which included a breakdown of administration and operating costs e.g, wages, rent, etc. These items have been verified and confirmed by the parties, and the corresponding amount of US$ 117,906 was remitted by Batys Kali LLP to Satbor LLP on 17 February 2015. The balance of the available loan amount related to Satbor LLP creditors is being verified and audited by both parties together with the relevant creditors of Satbor LLP in relation to the quantum and reasonableness. Until completion of the verification process and to the satisfaction of all parties, the balance of the corresponding loan amount will be remitted to Satbor LLP by Batys Kali LLP.”
FULL AND COMPLETE DETAILS OF ALL AMOUNTS OWING PLUS ANY AGREEMENTS WITH THIRD PARTIES WERE SUPPLIED TO BATYS KALI BY 23 JANUARY 2015.
TO DATE, KPC IS IN DEFAULT OF ITS LEGAL OBLIGATIONS REGARDING THE AGREEMENT AND SPECIFICALLY IN BREACH OF THEM AS BELOW:
KPC BREACH OF CONTRACT No1:THE AGREEMENT CALLED FOR THE WHOLE AMOUNT OF $1.5 million TO BE PAID AS A LUMP SUM WITHIN 10 DAYS – LATEST 4 FEBRUARY, 2015.
KPC BREACH OF CONTRACT No2: NO PROVISION OF FUNDS PAID IN TRANCHES WAS ASSUMED.
KPC BREACH OF CONTRACT No3: PAYMENT OF ANY OUTSTANDING ACCOUNTS TO BE SOLELY AT THE DISCRETION OF SATIMOLA WITHOUT INVOLVEMENT OF EITHER KPC/BATYS KALI.
“KPC will engage separately with ARDIL and is looking to reach a satisfactory arrangement of US$5 million debt owed by Satimola to ARDIL as previously indicated in earlier communication between KPC and Satimola. Equally, KPC will also engage with City Winner Holdings to reach a satisfactory arrangement of the US$5 million owed by Satimola to City Winner Holdings.”
KPC BREACH OF CONTRACT No: 4 IN EARLIER COMMUNICATIONS BETWEEN KPC AND SATIMOLA, IT WAS AGREED THAT KPC WOULD ENGAGE SEPARATELY WITH ARDIL TO REACH A SATSFACTORY ARRANGEMNT OF THE US$5 MILLION OWED BY SATIMOLA TO ARDIL. ARDIL HAVE CONFIRMED TO SATIMOLA THAT KPC HAVE NEITHER PAID THIS DEBT NOR STARTED NEGOTIATIONS WITH ARDIL.
“KPC will continue to support Satimola/Satbor LLP through this process”.
THE IMPLICATION HERE IS THAT THE SALE AND PURCHASE AGREEMENT FOR THE ACQUISITION OF SATIMOLA IS IN FULL FORCE AND EFFECT. IT IS NOT.
THE ABOVE BREACHES OF CONTRACT ARE THE LATEST IN A HISTORY OF DEFAULTS BY KPC. SATIMOLA RESERVES THE RIGHT TO PURSUE KPC AND ITS SUBSIDIARIES IN THE COURTS OF AUSTRALIA AND KAZAKHSTAN TO RECOVER ALL COSTS SINCE THE SIGNING OF THE SPA IN MAY 2013 PLUS DAMAGES IN THE FULLEST AMOUNTS.
IT SEEMS VERY OBVIOUS THAT KPC/BATYS KALI HAVE NEITHER CASH NOR ANY MEANS OF FULFILLING THEIR LEGAL OBLIGATIONS. FURTHERMORE, IT CALLS INTO QUESTION WHETHER THEY ARE ABLE TO FINANCE THE DEVELOPMENT OF ANYTHING.
In compliance with HotCopper Rules for posts by Company Representatives, I confirm that I am a senior member of the Satimola Management Team working in business development.
KPC Price at posting:
10.0¢ Sentiment: None Disclosure: Not Held
