RE:Jimdines1234567............Where is the circular? - $25.8 mill award settlement
- Funders costs + commission we have been told in past documentation could be as high as 33% = $8.6 mill
Note - this is a low return for the funders if you consider they spent in the region of 6 years and $6 mill on funding the case. Therefore, while I fully expect the
funders to take their full 33% that is the max’ we were told that they would take by TMI so that is what TMIBF shareholders should expect.
Remember if you are original TMIBF shareholders we all (B, A and funders) lost in this case (especially if you factor in the time). The original cost base for the TMIBF shares was around $0.07 cents – it went up to around $0.22 and TMI apparently could have walked away 6 years ago with approx. $17 mill then offered by Bolivia – Oh for hindsight).
- Further TMI took a $500,000 loan from the funders against the presented award. The CEO informed me that TMI would not take the remaining $1.5 mill available. I expect that this amount will be repaid via TMIAF’s 15% stake.
- Legal costs for the case were basically awarded against TMI (approx., 66% of approx. $1.4 mill arbitration costs) = just over $900,000, These arbitration court costs I believe were not born by the funders and will, therefore, come out of the loan after the funders amount and before the A and B amounts are calculated.
So my calculation is as follows (play with any figures you may have) =
$25.8 mill – $8.6 mill – $1 mill (round up arb costs) = $16.2 mill - 15% (TMIAF share = $2.43 mill) = $13.77 mill to TMIBF shares /116,500,000 = approx., $0.118 per B share.
Please excuse errors which come with age but that is my calculation based on what I have read and been told. Numbers will change if - 1. TMI takes more than the ½ mill loan. 2. TMI charges the ½ mill loan to the award and not their 15%. 3. TMI comes up with other costs that the funders did not pay. All I am aware of are the 'arbitration court costs which I believe TMI are to carry (But I did add an extra $100,000 in the arb costs for this). All other legal costs and fees should have been carried by the funder.
I agree and have stated on several occasions in the past there is always an inherent conflict between A and B shares when a single company controls both and stands to potentially gain by manipulation (if it so chooses). This is why I was so concerned with the loan; how much of the $2 mill would be taken and how it would be repaid. The CEO gave me an email answer to the amount, however, I was not made clear as to the source of the repayment.
TMIBF shareholders better be vocal if the TMIB share amount is not at least $0.11. GLTA -
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