Serabi Gold Share Discussion Threads

[tightfist] 31/3/2020 10:33

More seriously I too am impatient to see evidence of other sources of funding being pursued, alternative to Greenstone. Whilst we don't IMO know the true reasons for Greenstone delaying it leaves one very sceptical about their deeper involvement?.The seemingly straightforward approach of the Beatty/Equinox Backstop arrangement is a great contrast to all the onerous undertakings associated within the 22nd Jan Serabi/Greenstone CLN arrangement..I hope that instead the Canadians can get more involved on a Equity-for-Debt basis (Sprott, Equinox) or an Equity/Warrant/CLN/Continued Deferral basis (Equinox, Beatty). Possibly combined with a modest Private Placing with loyal supporter Fratelli..I am very hopeful that some combination of the above can deliver and the (IMO increasingly greedy?) Greenstone CLN deal becomes history...... We would just need to accept some limited dilution and a six? month delay to our plans. Our gold is still in the ground!.Cheers, tightfist

[tightfist] 31/3/2020 10:29

Hi Sherry, Sleuth award gratefully accepted - but I have confined this morning's SRB/SBI top-up to the LSE..Cheers tightfist

[sherry35] 30/3/2020 21:23

tightfist - Are you toying with those TA folks tracking SBI.TSX with those volume based indicators? You instigator.

[sherry35] 30/3/2020 21:17

tightfist - You are brilliant on the digging up the purpose and conditions of the standby loan. You get the Super Sleuth award.

Well ... Mr. Beaty is in a very interesting position with regards to interest payments vs. equity stake in SRB/SBI. I think the wall has space for two fly's and two G&Ts as the players review the wealth in the ground and governing control of SRB/SBI.

The concerning thing is the team's in-ability to deliver on time - something exemplified in the Greenstone arrangement and communicated by posters on this forum. IF Beaty was take an equity position, I believe he'll want to reorganize the SRB/SBI BOD and executive team. This goes for current investors who may increase their stake. Cash is KING, and the King can dictate the players.

Thank you for your kindness on the message board. Which you have probably surmised from my posting style, I've been stressed with some of my friends working in the health care system. I have one friend with a lung infection the last 3 years.

... Sherry

[ironstorm] 30/3/2020 19:39

Thanks for this it sounds more reassuring. 🤞

[tightfist] 30/3/2020 16:43

Hi Sherry,I hadnt realised that the Ross Beatty Standby Loan arrangement is specifically in respect of the Anfield/Coringa Disposal transaction. This is from the 2 August 2018 results:"At the time of its acquisition by Equinox Gold, Anfield Gold Corp. ("Anfield") and its largest shareholder, Ross Beaty, offered future support to ensure cash receivable in relation to Anfield's disposal of its Coringa project (the "Coringa Disposal") would be realized by Equinox Gold prior to the end of 2018. On August 2, 2018, the Company formalized this offer of support by entering into a standby loan arrangement (the "Standby Loan") with its Chairman, Ross Beaty, wherein he will make available up to $12 million that can be used by the Company for the continued development, construction and general working capital requirements of the Company's Aurizona Gold Mine located in Brazil.The remaining $12 million receivable under the Coringa Disposal is not due until December 2019 and, when received, will be used to repay any amounts drawn under the Standby Loan.The Standby Loan is unsecured. In the event the Company draws on the loan and defaults on repayment, Mr. Beaty has the right to assume a share pledge the Company holds as security for its $12 million receivable from Serabi Gold plc ("Serabi").The Standby Loan will bear interest and fees at commercial rates, draw availability will be from September 1, 2018 to December 20, 2019 and repayment will not be before the end of the draw availability period, which is expected after receipt of payment of $12 million in relation to the receivable due from Serabi."I haven't found info on the 30th December 2019 extension you mention, but I do feel a little more relaxed. To answer your question directly, I would be hopeful that a fresh deal could be put together direct with Ross Beatty that is ultimately no more dilutive than the 22nd January Greenstone proposal.BTW the LSE share price bounced-back nicely this afternoon. tightfist

[sherry35] 30/3/2020 15:59

So, has SRB started shopping around for other investors as a contingency? Given SRB's track record of not delivering projects on time, is this activity underway?

So, Ross Beaty is back stopping Equniox with a standby loan. "Further to the Equinox Gold news releases dated August 2, 2018 and December 30, 2019, the standby loan arrangement between Equinox Gold and its Chairman, Ross Beaty, has been amended and restated to extend the term from March 31, 2020 to June 30, 2020." Lets assume this cash is burning a hole in Ross Beaty's pocket. Would it be better to loan the money to Equinox or invest the money in SRB thus allowing SRB to make the $12M US payment to Equinox for Coringa?

On an aside. In Canada, I believe the strike price on equity financing is based on 10 trading day average of the share price . It maybe 15 days. In any case, a financing at 80 CDN cents will not materialize for at least 10 trading days or 2 weeks.

[bomber13] 30/3/2020 14:43

I wish I knew the answer , but I suspect there will be something in the small print about a material change in circumstances . Does this also mean they have the right to renegotiate the terms of the Convertible ? Who knows , bit I also suspect they would have to have the support of the board , and then hold another General Meeting .

If Greenstone has such a clause in their Convertible agreement , might not Serabi also have a clause in their extension agreement with Equinox regarding a material change in circumstances ?

[tightfist] 30/3/2020 14:42

Hmm, post #5810 touched on the contractual topic, but only after the CLN's were to be issued. I don't think we have put our BB finger on the ruse they are using..... .Why? If you take on board the Cash is King mantra they think they will reduce their risk and/or get the CLN's cheaper later ?.I do wonder how Mark Sawyer? (Greenstone board member) sits comfortably around the same virtual table as the rest of the BoD. I find it hard to believe it as cosy and supportive as MH is making it sound..Personally I would veer towards revenge mode! Unless those unpublished Conditions really have not been satisfied.....Cheers, tightfist

[tiger60] 30/3/2020 12:48

I think they will call their bluff..

But there should be a RNS tomorrow and hopefully provide more detail. Anyone know the contractual basis detail on how Greenstone manoeuvred a delay and why

[tightfist] 30/3/2020 12:06

You will find a fair cash status summary at post #5833. On the face of it, tomorrow is crunch date....... .Is there a great cards player on the SRB staff - around the virtual card table are Greenstone, Fratelli, Equinox, Sprott and MH/CL. Cheers, tightfist

[loganair] 30/3/2020 11:43

Unlike many industries at the moment, being a gold miner at least Serabi has much of their revenue stream and there by profit still intact and producing a commodity that is still selling well and keeping its price during these difficult times.

[borisjohnsonshair] 30/3/2020 11:32

US$8.5M with around US$3.5M to pay back over 3 months. Then debt free with cash by June.The big question is Coringa. Will equinox be flexible with the final payment US$12M due tomorrow!I see the business worth way more than the current MCAP if they walk away. Shouldn't give too much away or take bigger risk over it.

[laptop15] 30/3/2020 11:26

Whats the cash situation here guys? Whats the time frame for monies to be paid back debt wise?

[tiger60] 30/3/2020 11:24

The one thing for sure is any refinancing will not be beneficial to PIs if you think the Greenstone deal was no good wait and see what happens next. I think some are looking at the issues here with rose tinted specs.

At the time of negotiating with Greenstone cash flow projections along with a rosy macro environment gave investors some clear advantages to participating. If you think a re negotiated deal with a dire macro outlook added to a worsening micro position will benefit SBR buy truck loads.

But I can't see it. These theories about possible saviours and 'off the book' discussions based on yet to be released drilling results are in the vast majority of cases a bit of escapism and respite from the realities of the situation.

[tightfist] 30/3/2020 08:11

In case anyone missed it, here is a repeat of post #5849 - my interpretation was that possibly contract drilling has been halted and the drilling crews sent away to lessen CV exposure risk to gold production. Late Friday brrmedia posted a very recent interview with MH:.hTTps://www.brrmedia.co.uk/broadcasts/5e7cdc7813bacc32cfd66d8b/serabi-gold-issue-of-the-2019-financial-results-and-update-on-operations.I found this VERY useful listening: As usual Mike sounds confident and upbeat and fields a number of gaps/uncertainties as best he can. However, the Greenstone CLN funds are suggested to be several months away, so emphasis is on negotiating another $12m consideration deferral with Equinox.......In normal times the "terrific" performance of the Ore Sorter would be a cause for celebration..... These days it's the use of the words "quarantine" and " camp" in the same sentence which are slightly more reassuring?.Good luck all, tightfist

[kennyp52] 30/3/2020 07:54

Good luck Boris . I kept getting 57p on the sell when the RNS came out so took half out and continuing to hold a decent amount in cash to buy dips . Been trying to slide back into a few stocks but when they move they go up double digits and so easy to miss . Good luck mate . See you on the other side 🤷‍a94;️

[borisjohnsonshair] 30/3/2020 07:20

Pushed back for sure.

[tiger60] 30/3/2020 07:17

100,000 oz in 2021. How exactly? That has gone