Finders Resources Share Discussion Threads

[chipperfrd] 13/8/2010 17:52

Cheers Coffee!
Thank you for taking the trouble.

[zenith63] 13/8/2010 17:38

Thanks for posting coffee, effort much appreciated! I bought a bit more while it was down, showing +12% on yahoo finance today (fairly meaningless with the spread being so volatile, but no big sell off anyway!).

[jonny flame] 13/8/2010 09:06

Thanks for sharing this with us coffeelito, it's appreciated!

[soulsauce] 13/8/2010 07:55

coffeelito many thanks for that.

[connor23] 13/8/2010 07:52

Cheers coffee. Thanks for the update. I am not unduly worried. My only concern would be any impact it might have on fund raising, although this appears to be minimal.

[coffeelito] 13/8/2010 03:42

Just had telephone chat with a chap in the Finders finance department. Took some notes as follows:

re. "forced" disclosure on fundraising: there is a deficiency in the asx form which does not allow you to take into account expected revenues, just focuses on costs ..

re. permits: no suggestion at all that we wont get our permits, its a question of when not if .. but obviously things work differently in indonesia to a western country .. there's always speculation .. we 100% confident that we will get our permit

re. legal threat: sometimes u dont have the choice of when u put out an announcement. we think their claim is totally baseless but the rules are that we have to tell the market. Are a lot of things behind it that publicly we cannot talk about. they invested $5m, even in worst case scenario and we had to pay all of that it would still only have minimal impact on share price

Action on australian market today shows investors here are more sanguine.

re. Ojolali find analysis, still no results: indonesia not the quickest place, maybe we should have said would take more than 2 weeks, am aware that it creates expectations ..

re. fundraising: again, things dont move as quickly as we all hope. getting all the costings, quotes from contractors in indonesia etc.

re. whether things are behind schedule: permits and fundraising issues have caused some delay ..

in summary: things have not changed significantly, the delays are disappointing but beyond our control. chris farmer the md lives there and knows how to deal with the indonesian government.

PS - As I write, Finders share price in Aus. is down 4.6% with almost 100,000 shares traded.

[cyprussteve] 12/8/2010 21:54

Hi coffee,
The announcement came out AFTER Aus trading - it will be interesting to see how they react tomorrow,

[coffeelito] 12/8/2010 15:22

Did the announcement come out during Australian market hours and if so how come that share price didnt react ?

Re. the possible court action: surely if the share price does pick up then as it heads back toward what those people paid they will have less incentive to sue ??

[hectorp] 12/8/2010 12:56

Irritating, but there is litle expectation that this will come to anything.
Sitting tight.

[soulsauce] 12/8/2010 11:49

Damn - but an absolute bargain for the brave.

[jonny flame] 12/8/2010 11:19

Yeah not news we were hoping for.

[someuwin] 12/8/2010 10:50

Certainly not looking so good after three bits of disconcerting news in recent days...

* Indonesian moratorium of forestry license permits.

* Admission (prompted by ASX questioning) that they need to raise further funds.

* Potential legal action by two shareholders.

[cyprussteve] 12/8/2010 10:34

Hmmm - even if all is OK legally, I guess this is not going to help the financing, or the share price they can get the funding away at.
What a shame when all seemed to be going so well.

[someuwin] 12/8/2010 10:12

Possible Claim by Tennant Metals Pty Ltd and MIT Nominees Pty Ltd


TIDMFND

For Release: 12 August 2010


FINDERS RESOURCES LIMITED


Possible Claim by Tennant Metals Pty Ltd and MIT Nominees Pty Ltd

Finders Resources (the Company) has been advised that possible legal claims may
be instigated by two minority shareholders in the Company. The Company believes
the claims are without foundation and, if legal proceedings commence, they have
little chance of success.

The claims have been made by Tennant Metals Pty Ltd (Tennant) and MIT Nominees
Pty Ltd (Meridian) in relation to certain historic reports, announcements and
presentations made by the Company.

Background

In early 2008, the Company placed an aggregate of 5,165,289 shares at $1.10 per
share to Tennant and Meridian as part of a financing to fund construction of the
Wetar Copper Project's Demonstration Plant (the Project). Tennant and Meridian
conducted their own due diligence as sophisticated equity investors. This
financing also included a secured loan agreement of US$5 million from Tennant
and Meridian (which was repaid in September 2009).

Possible claim

Tennant and Meridian have now indicated that they intend to commence legal
proceedings against the Company and /or its Directors based on the claim that
certain historic reports, announcements and presentations made by the Company in
relation to the timing and costs of the Project and its commercial development
were misleading or deceptive. Tennant and Meridian are seeking to recoup their
alleged loss on their initial capital investment, despite remaining the
registered holders of substantially all of the shares they subscribed for in
2008.

In essence, the basis of these claims is that, given the final cost and timing
of delivery of the now successful Project and its expected commercial
development, the Company could not at the time have had a reasonable basis for
its various announcements. The Company notes that Tennant and Meridian received
detailed and on-going information flow in respect of the Project during the
course of the loan financing arrangements. After an external legal review of
material underpinning its past announcements and after receiving legal advice
from the Company's legal advisers, the Company has rejected the allegations and
is confident that if any proceedings are commenced by Meridian and Tennant they
would have little chance of success.

The Company has rejected Tennant and Meridian's allegations.


Should any legal proceedings commence, the Company believes that the legal costs
and any potential liability can be managed by the Company in the ordinary course
of business and, to the extent relevant, within its directors and officers'
liability insurance arrangements.

The Company is continuing with its expansion program for the Project, which is
estimated will increase copper cathode production to 23,000 tonnes per annum.
The financing discussions for the expansion are now at an advanced stage. The
Company believes any legal proceedings would be unlikely to materially impact
the operational and financial management of the Company.

[someuwin] 11/8/2010 08:07

...Cheers steve - looks like a placing on the way then.
What price though?

[coffeelito] 09/8/2010 12:02

I tried to get him to elaborate a bit eg saying if this was a "known unknown" or an "unknown unknown" and how great a threat to the company is it ... But he didn't. Judging by the share price this news is not very alarming.

[cyprussteve] 09/8/2010 06:42

Hi coffee,
Thanks for that.
He is keeping it very neutral, isn't he - but not offering any reassurance either.
Almost impossible to interpret, really - any views guys ?
Ciao
Steve

[coffeelito] 09/8/2010 00:12

Have just received the following comment from Finders CFO:

"The news articles relate to the current drafting of a Presidential Decree which is intended to facilitate the Norwegian Grant. The articles are driven by the Indonesian Mines Association and are a means of lobbying to protect the interests of mining investment during the drafting process. There are several drafts being discussed. We will update the market in due course if anything affects our projects."

[someuwin] 05/8/2010 20:23

News to me too.

Makes me feel a bit uneasy to be honest.

[connor23] 05/8/2010 20:14

A suprise for me also! Hopefully FND can clarify any issues shortly. Fingers crossed no delays please.

[cyprussteve] 05/8/2010 17:00

Hi chip,
I confess that I was totally unaware of the proposed new legislation and moratorium on Forestry License permits, together with the massive grant from Norway ref deforestation - the first I was aware of it was in the link in my previous postings.
I don't recall having seen it mentionned on the board before.
Oh well - shows how much I know, huh !!
Hopefully Chris Farmer can clarify for us when coffeelito contacts him.
Regards
Steve

[chipperfrd] 05/8/2010 16:02

Steve,

This has been known about since the quarterly so arguably it is already in the price.

[coffeelito] 05/8/2010 14:04

Thanks steve, I'll try to get an answer.

[cyprussteve] 05/8/2010 13:54

Hi coffee,
I suspect the following may be the answer, but, it is odd indeed, as you have pointed out, that it has not affected the Aus market.

What we don't know as yet is whether the proposed new regulations will affect FND - quite possibly they will be OK, but, I imagine it is causing some market nerves.
In the recent quarterly report it stated "The company is currently seeking further clarification in regard to its application for a Location Permit, a form of land use permit, following an inconsistency identified between advice and permits obtained from the local government and the Forestry Department. As a contingency measure, PT Batutua Kharisma Permai (the local partner) is in the process of lodging applications for a forestry permit, supported by a recommendation from the Governor of Maluku and the Director General at the Ministry of Energy & Mineral Resources. Deferral of the permit may affect the startup of Stage 1. Finders will provide an update once further clarity is obtained."
Does anyone have a "hotline" to Chris Farmer to find out to what extent, if at all, FND are potentially affected ?
Ciao
Steve