Quick update on a few happenings Good evening all - I have received an update on a couple of things that have been happening over the past couple of weeks. No surprise that they revolve around financings.
1.> A couple of weeks ago Nick apparently secured a deal for a brokered financing through a group called IBK Capital, the term sheet was signed and things were just about ready to go, I am being told that the sticking point to commencement is that IBK apparently has a new policy whereby an administrative / services fee is payable in advance by any new clients. Many people were hearing that the financing was "at hand" and that we would be moving forward shortly. As was suggested at the time, taking it all with a grain of salt until the deal was formally announced as proceeding was a good idea and still is. While it sounds promising, the deal still has not been officially announced as proceeding.
2.> A second financing opportunity surfaced last week and was apparently quite attractive; enough so that the company was initially considering foregoing the IBK deal or probably more accurately deferring it for a bit. Unfortunately, although the financier was interested and the terms were more than acceptable, apparently the option was a loan and required nsuramnce coverage and that was an issue. Again a signed term sheet was completed, but the rug was pulled out from underneath Nick's feet by the insurance issue.
3.> Fortunately the relationship with IBK remained intact and that direction apparently remains open to pursuit. I am being told that the up front fee is indeed in place, but am also told that Gary has discussed it with the board and they are going to fund that project. I don't know if they are doing it as a loan, or as up front participants in the financing, but they are apparently stepping up to the plate to facilitate this program moving forward. Please keep in mind that like all brokered financings, especially those where essentially the entire participatory group is brought in by the brokerage, there is still a need to garner participation from IBK's collective group of investors, and that is not to be looked at as a done deal - regardless of how much they tell the company it is.
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If the company can come out of this with funding then they will need to expedite completion of the change in the Tanoyan IUP status to Exploitation , they will need to get a drill program going and they will need to do something far more effective in terms of IR / promotion / marketing than has been in place for the last number of months.
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It should also be noted that Gary has indicated that Tanoyan is not necessarily "drill ready" at present, as a result of the transition to Exploitation. Gary has stated that the company has undertaken a Feasibility Study and an Environmental Impact Study as part of the transition to Exploitation and that restarting drilling in Tanoyan would not be beneficial to that process. The start of these programs was loosely mentioned in the NR that announced Nick as President, but not elaborated on. They are both apparently being done to the standards required by the Indonesian authorities to begin with and will be upgraded to 43-101 standards at a later date. This could make the permitting at Anggrek more important than it was otherwise expected to be.
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What I have not yet received any feedback on, is what is happening down south in terms of asset sale, JV, etc.
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For the time being this is all I have to add, but hopefully the next item of interest will be an official announcement of the financing commencement.
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Salut,
Leigh McBain