African Min. Share Discussion Threads

[earnestwipplethwaiteiii] 06/3/2015 16:44

There are also AML's assets in Cape and OBT to consider, are there not?

[casual47] 06/3/2015 16:38

If the administrators are doing their job they will manage to get the project companies put into administration also.

Either Shandong pays them off to prevent them doing so with a non-riseable offer

or

a sale of 100% of the assets should give us a good chance of some value for shareholders.

If admninistrators do not bother or succeed in this then yes, we have no chance of getting anything back from administration.

[seanywauny] 06/3/2015 16:34

Read again, we still own the assets, we're not in control of them.

[shimmysham12] 06/3/2015 16:30

At least it is over. All our money gone. Ami has no assets for administrator to sell. Money gone.

[casual47] 06/3/2015 16:27

So much for arbitration!

At least this whole debacle will now be dealt with by administrators who might be more competentent than this lot (don't hold your breath!).

So I guess two things left to do for PIs:

1. Wait and see if admin returns anything for shareholders (low chance, but a chance)

2. Proceed with class action

[newswseller] 06/3/2015 16:19

Ironically this all happens on the day BZM comes back to life, unbelievable

[stockriser] 06/3/2015 16:11

RNS Number : 8223G

African Minerals Ltd

06 March 2015

6 March 2015

African Minerals Limited

("African Minerals", "AML", or "the Company")

Decision to appoint administrators and resignation of Nomad

The Board of African Minerals Limited has decided to apply to appoint administrators of the Company. Following the events announced last week and earlier this week, and further discussions with Shandong Iron and Steel Group ("SISG"), the Board has concluded that there is no reasonable prospect of it being able to achieve a negotiated solution with the Group's secured lender and the 25% shareholder in Tonkolili Iron Ore (SL) Ltd and African Railway and Port Services (SL) Ltd (the "Operating Companies"). The secured lender and the 25% shareholder in the Operating Companies are both now under the control of SISG.

The Company is working to identify an appropriate insolvency practitioner to represent and protect the interests of the creditors and stakeholders of the Company.

As a result of this decision AML's Nominated Adviser and Broker, Jefferies International Limited, has today resigned with immediate effect. Failure of the Company to appoint a replacement Nominated Adviser within one month from today will result in cancellation of the listing of its shares on AIM.

The decision to apply to appoint administrators of AML does not directly affect the situation of the Operating Companies which own and operate the Tonkolili iron ore mine and related infrastructure. As signalled on 3 March 2015, these companies are now completely under the control and responsibility of SISG through one subsidiary which has a 25% shareholding and another which, as secured lender, has taken control (but not ownership) of AML's 75% shareholding through enforcement of security over shares. As a result, AML no longer has any ability to make decisions in respect of the Operating Companies.

The future of the Operating Companies, and their ability to pay creditors, obtain funding, and restart operations, is now entirely in the hands of SISG. Any further support or interaction between the Operating Companies and AML, including transfer of any staff and assets, and resolution of financial aspects, must be negotiated between SISG and the administrators, once appointed.

The Company has been advised that the injunction referred to in its 27 February 2015 announcement has been extended by the Sierra Leone High Court. The injunction restrains the defendants (Tonkolili Iron Ore (SL) Ltd, African Railway & Port Services (SL) Ltd, African Power (SL) Ltd, AML and Frank Timis) from unilaterally taking any steps that will lead to the dissolution, liquidation, winding up or placing into administration of any of the defendant companies. The injunction continues until the hearing and determination of intended or proposed arbitration proceedings. The Company is not aware of the commencement of such proceedings. The Company does not consider this injunction is capable of preventing AML from entering administration.

Funds have been released from the Operating Companies' restricted bank account in Hong Kong to cover payment of February salaries for national and expatriate staff in Sierra Leone and these payments are now being processed.

[casual47] 06/3/2015 14:36

LSE post -- arbitration proceedings -- so proceedings to a resolution of a dispute that will allow all parties to continue working together?

If Shandong wanted to completely cut AMI out of the picture then why would they waste time on arbitration?

Still doesn't mean that shareholders will see any returns, of course.

But it could be a glimmer of hope?

[earnestwipplethwaiteiii] 06/3/2015 13:40

casual - terrific work. The corpse walks yet!

[casual47] 06/3/2015 13:40

It is crazy they put so much at stake in these loans. I don't know how common the wide scope and triple/quadruple levels of security are in the industry or business in general but it may be that AMI has been in a pickle for a much longer time and that they were forced, through their weak negotiating hand, to accept such harsh conditions all the way back (and further?) when the PXF was first obtained.

It also illustrates that this whole thing is quite the Gordian knot and the BOD may have had its back against the wall with regards to how they might have been able to proceed to solve the problems at hand.

It's clear there is at least a case of mistaken hubris with regards to information published in last year's RNS releases but perhaps not everything that looks on the surface "dodgy" may actually be dodgy but rather a heaving mess of legal complications.

[casual47] 06/3/2015 13:16

The above may explain why it was impossible to sell or put the project companies into administration.

If there was a fixed charge over the assets then:

1. AMI would have needed permission from the lenders to sell those assets.

2. If the assets fall into administration then the lenders could get ALL proceeds by way of goodwill payment

(disclaimer, the above is my understanding from cobbled together google reseach, may not be correct)

[casual47] 06/3/2015 13:01

Reply from Matthew Hird.

The first part is a reply to a question I asked regarding seeming conflicting information from the company regarding whether the PXF was secured against assets or cash flow.

I then also asked whether Shandong had actually taken ownership or "merely" taken charge over our assets.

Plus I asked about update on court proceedings.

---------- Forwarded message ----------
From: Matthew Hird
Date: Fri, Mar 6, 2015 at 12:55 PM
Subject: RE: African Minerals - Shareholder query

The main security under the PXF are cashflows arising under certain of the offtake contracts. These cashflows service the debt (interest and principal), which is why for brevity we have disclosed the existence of this security in the annual report and other public documents.

There is additional security under the PXF, including AML's 75% holding in the Operating Companies and a fixed and floating charge over the assets of the Operating Companies, except those pledged under the Equipment Finance Facilities. Since no cashflows are arising under the offtake contracts due to the business being under care & maintenance, the other parts of the security package become more relevant.

With regards to your query relating to SISG, as per our recent press releases, subsidiaries of SISG have taken steps to take control of the Operating Companies, but not assumed ownership. As AML is seeking legal advice on these developments, it is not appropriate to comment further.

Finally, we intend to announce something very shortly relating to the outcome of the hearing that took place earlier this week.

[earnestwipplethwaiteiii] 06/3/2015 12:53

Instead we've ended up as Bell End...

[stockriser] 06/3/2015 12:51

If only we could be another Bellzone....


free stock charts from uk.advfn.com

[casual47] 06/3/2015 12:35

Why didn't he put the project companies in Admin prior to the injunction?

Surely that would have resulted in more than what they are getting now.

[fishyneck] 06/3/2015 12:15

I wonder why, at the point Frank knew the bigger boys were taking all his toys off him he didn't just offer to throw Marampa back into the pot to try and sweeten the Chinese? If his buying of this was the catalyst for the souring of relationships then it could have been used to sweeten it....maybe he did?

fn.

[newswseller] 06/3/2015 12:08

Ah ok... BZM back from the dead today, up almost 250% already, that should have been us

[seanywauny] 06/3/2015 11:07

The one from 23rd Feb.

[newswseller] 06/3/2015 10:58

Last email? I've not received anything in the past week?

[seanywauny] 06/3/2015 10:16

Grants last email to us all is consistent with the news of Timis & Bangura selling their shares.Remember, he asked us to keep it shtum!

[newswseller] 06/3/2015 08:56

How would you get hold of the share register to find out?

[fishyneck] 06/3/2015 08:49

I can't believe he sold out before this debacle hit. He couldn't be so stupid as to think he'd get away with that....surely!!

fn

[earnestwipplethwaiteiii] 06/3/2015 08:28

I for one have never thought it orchestrated. Besides anything else, why go to such convoluted lengths and risks?
My opinion is that it has been a huge miscalculation on Timis' part, and now it's time to pay the piper. Unfortunately, we are enmeshed in the whole debacle, but if we can make a legal case there may just be something to salvage.