Deal terms cannot be met, AYC is $1.6M short of its contractual obligation to fund settlement. Settlement terms delayed by another month to 30 April. Share distribution proposal cancelled.
I do not understand how AYC could take over control and management of ORS mining assets without a separate license agreement being put in place that IMHO needed ORS shareholder approval. I think that the whole deal now hinges on two issues (1) a quick recovery in the gold price to above A$1,600 per ounce (which I do not think will happen) (2) a really rich recovery from the stoping that is being carried out on the 1080 and 1100 level at the Maldon Mine. I have no clue what will eventuate but my guess is that the target must be at least 1,000 ounces or more for a return of at least $1.5M. Gandel has offered a $1M funding facility to ORS so I believe that the gold production number must be doable AND may underwrite further equity funding.
The IRR from the A1 Mine is very impressive, so there is a lot of incentive to make the deal work.
AYC Price at posting:
3.1¢ Sentiment: Buy Disclosure: Not Held
ORS Price at posting:
1.2¢ Sentiment: Buy Disclosure: Held
