Ann: Appendix 3B, page-11

The final nail in KBL's coffin has only just come this week. They've been working on a DOCA since late 2016. After a couple of rocky years prior their Mineral Hill project started off 2016 well but was hit by a severe rainfall event and a haul road collapsed. Costly delays followed and they already had significant debt. Things began to get back on track mid year but there was some sort of stoush between management and the secured creditors Quintana. A couple of TH's followed in quick succession and then they went into VA. Mineral Hill was sold and the DOCA was based around the remaining asset Sorby. Various proposals were put forward and negotiated and late last year Quintana basically moved the goal posts so far they were out of reach. Others might disagree but I believe they gave salvaging what was left of the company a red hot go. I am a holder of a small parcel of KBL. Had just started to dip my toe in when it all went south. Consider myself lucky. Sadly some were up to their eyeballs.
KBL was in production PRL exploration but if I had to draw comparison l would say mismanagement, unforseen factors and sudden financial distress all played a part. When it comes to trouble they're pretty standard stuff. It's the finer details of these which will see how things turn out for PRL. I know of other companies in similar situations that have turned things around. One common thread for all was it took some time to fix. You have to be patient with a capital P.