Asa Resource Share Discussion Threads

[hute17] 04/4/2018 15:43

I am surprised about the confidence with which it is claimed in some posts that the board in general and Dearing in particular acted against the interest of shareholders. It still seems to me that they saved the Company from being plundered first by Mpinga and then by Ning. However, a substantial update from the Administrator would greatly help to maintain my confidence that things are moving in the right direction.

[nomz] 29/3/2018 20:32

“Company secretaries in all sectors have high level responsibilities including governance structures and mechanisms, corporate conduct within an organisation's regulatory environment, board, shareholder and trustee meetings, compliance with legal, regulatory and listing requirements, the training and induction of non-executives and trustees, contact with regulatory and external bodies, reports and circulars to shareholders/trustees”

Pretty much failed in every aspect of that..

[nomz] 29/3/2018 19:08

The other board members who allowed this to happen should be brought to book and should never sit on a board again. And where was the Nomad during all of this? As for AIM I wouldn’t expect anything less.
But the company secretary/legal counsel (guess who?) really does have some serious questions to answer. Especially given that he put the crooks in in the first place.

[timgw] 29/3/2018 18:45

Dearing will not be "struck off" without a formal complaint supported by evidence. I doubt very much that the Administrators are likely to do this just as they are simply going through the motions of criminal proceedings against runaway Chinamen. The real winners here are the Administrators who have a meal ticket for as long as they like as there is no easy way to bring this matter to a conclusion.

There are a lot of people who should be in the frame for actions, not the least being the market regulators and auditors. The only real losers are shareholders and that is perceived as nobody's problem but ours. I would be interested to know if one of the "big hitters" out there feels sufficiently aggrieved to take them on but practical common sense veers towards not throwing good money after bad and making the best of other investments.

Hey ho.....!

[gfrae] 29/3/2018 17:05

I imagine the Chinese thieves paid him well. He may not need to return to ambulance chasing in Bolton after this ,though I assume he will be struck off.

[wstirrup] 29/3/2018 08:50

Thanks for all contributors... (and Plas, hadn't sen that) though it appears to be optimistic...

W.

[timgw] 23/3/2018 13:35

Not looking good for Bindura and FR either.....

[timgw] 10/3/2018 18:39

There is no misinformation here just some unwillingnes to face reality!
For shareholders to get anything more somebody has to turn up and pay a large sum of money without any confidence or clarity in knowing what they are getting. In a best case scenario nobody will pay anything more than the price set by RPI in the hope that they would get the company on the cheap before all the real facts were made known.
If the company is dissolved it will ultimately cease to exist like the proverbial Dead Parrot. The assets, such as they are will be sold off, again at distress sale prices and creditors paid. The company has never paid a dividend out of earnings and the liklihood of one from the capital is minimal.
Duff and Phelps have to make some positive statements to justify their fees!

Edit: Bear in mind a "dividend" could be .0001p not a repayment of the price you bought the shares for!

[nomz] 10/3/2018 17:25

No misinformation from my side, just the opinion of someone with 35 years experience in mining, direct experience at BNC and in the DRC and who has been involved in numerous merger and acquisition deals over the years. FWIW.

The DRC licences will not be restored until the outstanding amounts are paid. This will include the licence fees (expensive), outstanding taxes (DRC is the worst country I’ve ever worked in for this) and whatever they owe in terms of the JV with SOKIMO. It is not a quick fix. And PAF were most certainly not aware of this, as the ridiculous board of this company apparently didn’t even know themselves!!!

The Administrator previously gave the impression that a deal was on the table. It wasn’t. It was never more than an expression of interest. The fact that they now say they are talking to somebody means nothing.

And I am well aware of what dissolution means. If you think there will be anything left for shareholders at the end of this debacle you are living in cloud cuckoo land.

[plasybryn] 10/3/2018 16:44

Sorry it has taken me a while to come back, but it doesn't sound as though you have all read the Joint Administrator's Report to Creditors & Statement of Proposals dated 23rd January.
I think nomz is misunderstand how these things work quoting just 14.2 to us.
In the next paragraph (14.3) it explains what dissolution means:
"The Joint Administrators have formed the view that once all the outstanding Administration matters have been finalised, and all liabilities incurred during the Administration have been discharged, there will be sufficient funds available to repay all non-preferential unsecured creditors in full and also allow a dividend to the Company's shareholders".

It is proposed that this action will be undertaken in Administration for which the Joint Administrators will have to apply to Court".
It also said in 4.3 - "It is also anticipated that there will be sufficient funds to allow a distribution to the Co's shareholders".

The issue with the DRC has been known for sometime and whilst there is a process to be followed it is I believe expected that the licences can be reinstated.

At the time of this report the Joint Administrator's expected PAF to proceed, but again in 6.8 it importantly states: - "The Joint Administrators also engaged in discussions with a couple of other interested parties regarding their interest in the assets of the Co. and these are currently ongoing".
You will be aware that a Creditors' Committee has been set up made up of 5 people, including 3 ASA Resources Directors ( Henry, Morrison & Barneau). Niall Henry has plenty of "skin in the game" and is therefore very much aligned with the favourable outcome we all desire.
Given the ongoing costs they certainly need to get on with this.
Hope that helps and restores some balance to what I would consider misinformation expressed here.

[juju44] 10/3/2018 09:16

Always said the gangsters would win here and they have . Write it off folks and go find a life

[nomz] 10/3/2018 00:20

The ground they have in southern DRC is rubbish and is off the main copper belt. Anglo American had it and found nothing. Mwana had it and found nothing. There is one very small historical copper deposit which has no cobalt count. And the DRC government’s new mining code has increased the royalty on cobalt by 500% as well as adding a host of other taxes on profits.

[wstirrup] 09/3/2018 23:41

This whole mess, smells of Chinese Laundry...

DRC Cobalt/Copper/Gold assets revalued in line with current prices, would make them extremely lucrative IF licences had been maintained... No doubt the Chinese Directors siphoned off monies with the hope (expectation?) of picking up the assets on the cheap before the Gold... sorry Cobalt rush, that is driving the Blue Ore prices through the roof came to fruition... Apparently, the latest batteries now use more Cobalt than Lithium, to boost speed of re-charge and length of life, and Tesla's Musk is getting worried he won't be able to get reliable sources..

Nevada has a Cobalt mine about to come back into use, so might be a good punt, for those of you who still have money left after the Banksters, Foreign Politicians, Scheisters, Directors and Administrators have taken their cut.

W.

[nomz] 09/3/2018 20:25

Sorry, but no company in their right mind would go near this mess. Finding out that the DRC gold licences have been revoked hasn’t exactly helped.

And if you bothered to read the report you would see that the Administrator is recommending dissolution.

[plasybryn] 09/3/2018 19:58

I think another buyer (s) will emerge wanting to obtain the assets. I doubt RPI will be acceptable. I expect the Administrators are dealing with this now that PAF have thrown in the towel due to their problems, nothing to do with ASA.

[timgw] 09/3/2018 19:17

If the company was to come out of administration as a going concern who would run it and who would own it? As RPI allegedly have a majority shareholding it would seem that they would be at liberty to continue plundering the company assets for their own gain. THe administrator could not allow that. With no market for the shares anymore I doubt very much that they would volunteer to buy out the remaining shareholders after paying off creditors.

My prediction is that there will be more legal battles, more fee income for the administrators and we will still be debating the issues next Xmas!

[caedwalla] 09/3/2018 18:19

Thank-you for the link. My conclusion for what it is worth - which is very little at this point - is that with a bit of good will this company could and should be brought out of administration as a going concern. The $20m BNC bond is perfectly manageable at current Nickel price; the $20m Zindico claim is bogus as indigenisation no longer applies, but even if it was upheld by the courts it could be met with equity in the company as this was the whole point of indigenisation; I do not understand the $20m damages due to FR and BNC but this only makes any kind of sense if the company is being wound up - otherwise, is it not just pointless money shuffling within the group? There is only about $10m in trade creditors and tax etc. which again should be perfectly manageable at current PM prices.

[nomz] 09/3/2018 13:46

Nor is anybody else

[redtrend] 09/3/2018 13:46

The fact they can't even issue a statement detailing they've reported Ning's fraud to the applicable authorities or issue any criminal/ civil proceedings to counter Nings own court claims and recover monies, nothing surprises me

[redtrend] 09/3/2018 13:32

PAF have 40m in debt already, have major issues at Evander which is loss making and would not have found it easy to raise money at favourable interest rate

It would have gone down like a cup of sick with shareholders and overstretched them at a critical time

If PAF were interested they could have gone in and discussed directly with DRC government and ramped up Freda to 100k Oz.

In any case and whatever the reason, they're no longer interested

[nomz] 09/3/2018 13:28

What is interesting is that this has been the general "word on the street" in DRC circles for a while. Yet the ASA board didn't pick up on it? Or they did and chose not to mention it? It is pretty important!