Magna has security over something? No mention of what. From...

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14/03/19

19:02

Post #: 37766117
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Originally posted by 82Punter ↑

My money is on an announcement on the 27th (presumably of March) appointing administrators or a provisional liquidator to the company.

My reasons are:

gut feeling that somethng's gone seriously wrong with the Kasombo tailings project and they've no longer got it. My guess is that the JV partner (Paragon SARL) didn't fulfill conditions in their agreement with Gecamines and therefore Gecamines has terminated the JV with Paragon SARL. As a result CFE now has a 50:50 JV with Paragon SARL over nothing, leaving CFE to scramble to try and piece a deal together with Gecamines;

given the long radio silence on the Kitwe tailings project, I suspect something's gone wrong there too. There's been no announcements of the drilling results that were being done in October (ish) last year and there's been no announcement that CFE has paid the balance of the milestone payments which were requirements for them to get the 60% interest.

Magna finance deal had 2 terms that stand out for me at the moment; (1) SP could not go below 2c for more than 5 straight trading days and (2) company not to be in trading halt or suspension for greater than 5 straight days (or however many days it was, their way over by now). Therefore Magna will have rights to call for the immediate repayment of the funds advanced to date or to convert to shares (unlikely given there's no liquidity at the moment).

The only way for the directors to try and save their skin here is to appoint voluntary administrators to stem the bleeding and hope the company can be recapitalised in a DoCA so that they don't get pursued for insolvent trading and/or the administrators don't dig too deep in their investigations.

all IMO and DYOR.

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Magna has security over something? No mention of what. From memory the t. sage did say it wasn’t the shares in EUR, CVS etc.
CFE Price at posting: 1.6¢ Sentiment: None Disclosure: Not Held
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Magna has security over something? No mention of what. From...

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