exactly - all structurally prepared. the last move was the latest RNS |
I think I’d be keeping one eye on the potential of administration at PXC and what happens with the subsidiary structure in such an event, Konnex, KPXH etc - all those shareholder loans from the UK listed parent to these US registered subs for instance.
Who gets to walk free, who gets left holding the baby, who ends up profiting from those ‘assets and sunk costs’? |
 Greyingsurfer. I think you are missing the point here.
Exgen cannot afford the 20% cost of production at this moment in time and will certainly not be able to afford the 20% of $80m dollars to complete the production.
It is a private company owned by JR and RW and maybe some other players.(Are other PXC board members shareholders too in exgen? I do not know)
There are no shares traded in this company which makes me think that they have been part of the stumbling block all along. Unable to get a sizeable loan at decent rates of interest and lenders prefer to lend to one party, not two anyway.
PXC state that by lending them funds and creating a single loan source (bonds), this will make it easier to fund the proposed production. Agreed, this will make it easier, but what have exgen given in return. Absolutely nothing.
As I have tried to state previously, what are they putting on the table for this deal?
Seems to me that they are not giving up any of their 20% holding, and the risk is now entirely with PXC and its shareholders.
Did PXC board require some form of guarantee from exgen to cover potential losses? I do not know, but PXC board should have insisted that exgen either help in funding or simply lose their stake in Empire.
This is what running a business is all about.
This agreement has meant that PXC shareholders have lost an additional 20% ownership which in itself might have sparked the market into some positivity.
As I stated, RW and JR are big players in both exgen and PXC and may have had a big input in PXC not demanding that exgen stump up or lose their interest in the mine.
Perhaps the PXC board can shed some light on this, as it seems to me that PXC shareholders are losing out.
This is just my take and if you have read some of my previous threads, you will note that I have repeatedly asked about exgen, their ability to provide production cost funds and why on earth did PXC not buy them out, absorb them or just enact the clause that gives the exgen part of the mine to PXC.
To date, I have never had a satisfactory reply on any threads and this bee in my bonnet has just been brushed under the table every time.
Perhaps Marcus can offer some form of clarification over my issues. |
Absolute state of this up and down like a yo-yo |
i see the latest RNS as masks falling.
no need for them any more.
preparations. |
"The only way that PXC can gain is if exgen give up part of their 20% holding"Missing the point. PXC can gain if the agreement eases the way to get finance and development moving. Given exgen had a right to contribute nothing till a BFS was produced, and it's not clear where their share would come from anyway, PXC would potentially have had to fund, and wait for a BFS, and then face a possibility of having to loan the cash anyway. If this helps move development forward that's a major gain. |
Exgen sold most of their royalty off about 18 months ago.
The only way that PXC can gain is if exgen give up part of their 20% holding, which seems very unlikely.
This is turning into a boys club moment for me.
Will the share price rebound? Good question.
What is known however is that there is no initial risk for JR and RW, who are major shareholders in exgen as PXC is taking 100% of the risk.
If PXC flounders in Q2 and goes under,will exgen still be a viable Company? I don`t honestly know as I don`t have the small print details of this new arrangement between the two companys`.
Only time will tell. |
The big question for me that is currently unanswered is the terms of the loan.
We know that our copper bonds in the right circumstances could be paying 20% interest (and the revenue from the copper would be huge also). Would be very unfair if we are not at least recovering the cost of the funding, given we are taking on all the risk.
Would be interesting if we got an additional royalty that covered some of the potential interest uplift.
Raises a lot of questions, but at least they are moving things along. |
the start of a great Houdini escape?
or shuffling burning deckchairs on the Titanic whilst the band play on and the last of the lifeboats slip into the icy waters…?
No mention of NIU.
No mention of bond monies.
Is this just a way to syphon off the last of the cash into the subsidiary before the whole thing goes bang?
Isn’t this just the PXC way, more questions, never any answers. |
He was only “pleased”; to have reached an agreement, not “very pleased” or “excited”; lol
Previously he’s said…
May 2024
“Ryan McDermott, Chief Executive Officer, commented: "I am very pleased to report
July 2022
“Ryan McDermott, Chief Executive Officer, commented: "We are excited to announce |
Imo this is bottom and I added further.
Gonna fund one of its subsidiaries, Ergo which implies to me that they are gonna have access to some funds, add in comments by CEO, and I believe the Phoenix will rise from the ashes :-)
Ryan McDermott, Chief Executive Officer, commented: "I am pleased to have reached an agreement with our partners at ExGen that significantly simplifies our relationship, and enables the construction of the Empire Open-Pit to be funded by one co-ordinated shareholder loan managed by Phoenix, rather than two shareholder loans on potentially different terms. Both parties look forward to working together to bring the Project into profitable production as soon as possible and I look forward to providing our shareholders with further updates in due course.". |
It all looks underhanded and dodgy
In the annual report PCX has lent $29m to Konnex and KPX, PXC market cap £10m |
I had always believed(rightly or wrongly) that if exgen could not put up their 20% of start up monies then their 20% ownership of the mine was to be transferred to PXC ownership as exgen had defaulted.
Did I not read a couple of years ago that exgen had sold their royalty amount(roughly 2%) to a third party?
Jason Riley, is head of Konnex resources and part owner of exgen along with Richard Wilkins. Please correct me if I am wrong here.
If a Company cannot put up the funds and would therefore lose its interest in a business venture, the business becoming owned by 1 party, why on earth would that 1 party loan that non payment Company funds to stay in that business venture.
It does not make sense to me that the 1 party is now taking on 100% of the risk.
This is bad business for the shareholders of the 1 party as they have just lost 20% of the business and 20% of the profits but are increasing their risk factor.
Is this happening because both JR and RW are involved in a small close knit group of people associated with PXC.
Someone please correct me on these thoughts as I cannot understand the logic in the loan to exgen |
This announcement simplified things considerably. The 100k annual fee and 500k annual spend requirements are waived, as is the BFS supported by 2 offers of financing before ExGen would be required to provide their 20%. So any funding now "just" needs to cover the project, and it is all much simpler for any third party to understand.Obviously the company still needs to resolve the questions about funding that have been raised on this board. This RNS covers something different: the relationship with ExGen. |
There was never any clarity about how exgen would fund their 20%. They were always likely to have to borrow the cash. This simplifies the issues, and at the same time exgen have agreed to waive the requirement of a bankable feasibility study and minimum annual spends. Not hard to see how the current situation has exposed the need for that, but this is a clear advance, even if not the one on the topic that matters most! |
NIU aren't funding anything |
trader - NIU are funding it, and don't require a BFS.
Potentially the differing funding arrangements between themselves and ExGen was a stumbling block, now resolved. |
Without a BFS, obtaining financing for a mining project is highly unlikely, as it is considered a fundamental step in de-risking the investment
With this new loan the debt will higher than the market cap of the company
Where has all the money gone? |
Re-reading - looks as though this de-tangles the arrangement re ExGen funding and NIU funding - both potentially on differing terms. ExGen potentially might also have had funding issues themselves...maybe NIU not content with them standing to one side and not contributing their share??
The loan now being repaid back through project income/profits
PXC now fund 100%, remove some obligations on project spend and the need for a BFS |
I'm not pretending that this is going to be OK, but hopefully this is the ironing out of some cracks that NIU require, before they fully commit. |
Shuffling deckchairs...we cant show any certainty of PXC funding any development at the moment and will be running out of central operating funds within six months and currently have debt of $7m and have all but exhausted funds raised earlier this year ..with little to show for that spending ...so what do they do..agree to lend the connected party minority holder in Empire money they haven't got themselves. Bizarre times. |
You are talking absolute rubbish. |
It's not at all clear that's what it says. Work will now all be funded via PXC, rather than a separate source for Exgens share, plus a bankable feasibility study and minimum annual spends no longer needed. It's doesn't say anything about where PXC will source the cash to loan to exgen |
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