MAA loan deadline So until someone gives me some details. Please correct me if Im wrong. Im looking through sedar and news releases.
What i see is that the SNC Lavalin Document has been redone like 5 times. OPEX right on line with KRN $125
CAPEX higher as MAA upgraded electrical, now has gas in there updated feasibility and is building a Port by Evergreen who is in the businees with ships and such. That accounts for the higher CAPEX. I dont know how you can have a way cheaper/half the CAPEX to build a second phase of the same thing. The last Erco update i read was that phase 2 was put down to a preliminery. I would suspect the Capex to be around KRN's but more with a Port and higher cost of gas, If they have it.
Here's what scares me about this company
Feb 23 is the closing date for MAA to pay the interest of 10.5% of $50 Million to a loan from Evergreen. So $10 Million else evergreen will put it into a convertible share of 295,770,211 shares making Evergreen hold 357,238,683+295,770,211 of 755942674 shares or 87% of the company. So 13% of market cap is out on the open market.
In December Evergreen just pledged shares 357,238,683 to the bank of China(Gov't owned) essentially the bank holds them but allows Evergreen to act on them. If MAA cant make the deadline on Feb 23 and the shares to change hands. If that happens The Bank own 47% of the shares and Evergreen 40% with evergreen controlling 87%
A Bankable Feasibility on the way. Im only guessing that the bank that will debt finance is the same bank that holds 47% of the company.
It looks like a real good project and will get built, Unfortunely its China's project and there is only 13% of public shares left to push out of the company. Im sure investors will be boughten out and this company will be off the TSX in a short time, and go to the private sector or to the Republic of China. Great project but even if its built but there is no pay out to an investor. I could see that many shares outstanding a consolidation happening with a reverse split. if its still on the TSX after there BFS ill consider investing.
Febuary 23 is the deciding factor if this company will still be able to survive. Great project, they just signed with a loan shark.
My opinions i guess. if im way off the mark let me know. Ive only spent a few hours. It is on my watchlist where 3 days ago i didnt know it existed. Just happened to stumble on it trying to find out what Carnallite actually was