Atalaya Mining Share Discussion Threads

[stockknobjockeyvanbookstino] 09/5/2018 22:26

Didn't realise the contract had been altered enabling us to raise funds via equity:


The Claimant (Astor) sold its interest in a Spanish mining project to Atalaya in exchange for largely deferred consideration of up to EUR 63.3 million. The consideration was payable in tranches upon the occurrence of certain trigger events.

The key triggers included Astor receiving authorisation for mining from the relevant local authority and Atalaya or one of its group companies securing senior debt finance and guarantee facilities. Atalaya undertook to “use all reasonable endeavours to obtain the Senior Debt Facilities … and to procure the restart of mining activities … on or before 31 December 2009”. As initially drafted, the agreement prevented Atalaya from borrowing, except by a Senior Debt Facility, without Astor’s consent.

The original terms were later amended including, crucially, to allow one of the Atalaya group companies to raise money by issuing new shares and channelling funds to Atalaya without Astor’s permission. A further key amendment allowed Atalaya to borrow from other group members. In the event, Atalaya did not get permission to mine until July 2015 and incurred large costs in maintaining the mine and getting it to a state where permits could be obtained. Atalaya entered into a large number of abortive negotiations with various parties in an attempt to raise money as well as undertaking rights issues.

[laurence llewelyn binliner] 09/5/2018 20:00

#waterloo01, thanks for your insight/inputs here, a lot hangs on the result, but to me it seems that Astors legal team are scratching to find anything to shore up their case using 'futility' as they know they have a weak hand.., but at least they have done some research this time around..!

I think it's just an exercise they have to demonstrate they are going through to support a follow on claim on their legal experts who drew up the original contracts for incompetence/negligence .. :o)

[waterloo01] 09/5/2018 19:12

The key point about that is this is an appeal, not a re run of the trial. The case law used was far from compelling and they are effectively asking the judges to throw out his interpretation of the evidence (who incidentally was sitting a couple of doors down today). One of the key elements of his judgement was that it wasn't up to the court to rewrite contracts because they are badly drawn, especially when it was written by teams of lawyers and a experienced players like Astor. In that case ATYM demonstrated that they had made best endeavours to raise it via debt but in the end it got to a point where they did it through equity as otherwise, at the time, the company would have folded.

I think they would have to have shown a great deal more for them to overturn (IMO).

[spcecks] 09/5/2018 19:04

waterloo01 Thanks again for the update.

[erric] 09/5/2018 18:57

Husbod, if you type ATALAYA v Astor in Google then you will be given about 20 links to summaries of last year’s case and the definition of “futility̶1;.
I only read round the subject this afternoon and I found it fascinating but it didn’t give me a steer on which way the judges are likely to move in this appeal process.

In lay-man’s terms it seems to hinge on interpretation of two thoughts on “good faith” and “best endeavours”

[waterloo01] 09/5/2018 17:31

Hope to go tomorrow but not certain. Would like to hear our side. As all brokers have Astor as a liability, it would be 'a wind fall' if the debt got cancelled by default.

Not heard anything today that suggests the judgement will be changed on appeal (at least as far as Astor are concerned).

[husbod] 09/5/2018 17:19

Not sure I grasp the relevance or principle of "futility" although it would be nice if it applies to the Astor appeal process.Commercial law can be very dry in comparison to a good juicy crime or divorce but it's always a pleasure to hear fine minds at work attempting to camouflage the weaknesses of their case.In the meantime we drift slowly downwards.Cheers waterloo.

[scargs] 09/5/2018 17:07

Waterloo01

A very BIG and SINCERE thank you for your attendance and reportage today, very much appreciated.

Are you going tomorrow?

Scargs

[superbobtaylor] 09/5/2018 17:01

Thanks Waterloo1. Sounds like a good day for us.

SBT

[waterloo01] 09/5/2018 16:55

Well the day was all about the Astor case and their grounds for appeal. Mainly some rather obscure case law in reference to 'futility' (bit like the day) with reference in case law to a shipping company and a land dispute (which to my ear didn't move anyone). Summed up by if we win we are over due payment but if we lose then ATYM pays us out of excess cash plus they are arguing for the reinstatement of the uptick payment.

Case continues tomorrow with ATYM case (which I think will be strong, but strong enough to get debt cancelled?).

Unlikely to get judgement for some weeks as usual as it's setting case law.

[superbobtaylor] 09/5/2018 16:46

Also got into HUR. Still a little way off it's highs. If they hook up the 2 existing wells and prove good flow rates can be sustained AND interconnectivity to Warwick we will be in the money.

As ever if they hook everything up and hot problems then it is game over. The fact that both wells exist and have been flow tested makes the risk/reward a good one.

Here endeth the advert for HUR.

SBT

[erric] 09/5/2018 16:27

Rouge - off-thread - it seems it’s never too late to get in on a rising trend.
Like you I was being a little greedy with Hurricane waiting for the fall below 30 but I finally succumbed to some at 40 and I notice it just keeps on going forward. D Y O R of course.

[sirmoori] 09/5/2018 14:35

https://investingnews.com/daily/resource-investing/base-metals-investing/copper-investing/copper-miners-get-nada-drc-review/?mqsc=E3955144

[reba] 09/5/2018 14:16

Well done waterloo01
Thanks for attending and reporting

[husbod] 09/5/2018 13:44

How long is it listed for waterloo?

[spcecks] 09/5/2018 13:33

waterloo01 Thanks for the update much appreciated.

[scargs] 09/5/2018 13:09

waterloo01

It would be absolutely great if you stayed for the afternoon session.

Your attendance and is and would be very much appreciated.

Thank you,

Scargs

[mronions] 09/5/2018 12:49

Who is in court on Astor side and ATYM? Many thanks

[mronions] 09/5/2018 12:48

I hope they argue that Astor tried to make Emed take every debt offering whether it was feasible or not ie Astor just wanted paying back no cared longevity of business.

[waterloo01] 09/5/2018 12:45

Not much to report so far. Astor arguing again that raising funds via equity rather than senior debt is essentially the same hence money due. Fairly easy to argue against that in that Astor and lawyers knew that but for own reasons or oversight not included. More later if I stay for the afternoon session. So far so good.

[mronions] 09/5/2018 12:43

Anybody there at court? Was hoping one of my dogs turn up?

[husbod] 09/5/2018 11:42

Waterloo - wake up!

[husbod] 09/5/2018 09:42

Ahhh yer can't get out of it that easily rouge. Yer not the Donald, talking of which my oilers are doing nicely this morning. Just a pity Iran is not a major copper producer.

[rougepierre] 09/5/2018 09:16

Right Husbod...that's your bottle of Rioja forfeit...