OREA - Does France owe CAD a favor?Condensed Interim Consolidated Financial Statements (Unaudited) For the Six Months Ended March 31, 2023 On September 13, 2022, the Company announced that the French Government ministry responsible for overseeing matters related to Russian sanctions, had approved (the “French Approval”) the Proposed Acquisition... …On February 25, 2023, the EU Framework was amended again to allow for an extension to May 31, 2023, subject to French sanctions authority approval. On March 10, 2023, the Company received an extension of the French Approval, to May 31, 2023… As I have said it is interesting that the French did not stand in the way of OREAs move to take control of NGs 55% of Montagne d’Or. Nor did the US, or UK. Then right at the end of this process it was the CAD minister who said no. Would not even consider OREAs immediate alternative offers.
Really? The minister believed that OREA might, if events played out, pay NG basically ‘under the table’ despite having already put in the sanctioned payment transfer process (accepted apparently by the other oversight parties mentioned)?
Therefore, who did this denial benefit?
1. It takes away blame from the US, UK and French gov's for stopping this project pre mine decision.
2. It prevents the Montagne d’Or project from going forward as called for by environmental NGOs, Macron personally and UN social equity interests.
3. Anti NG interests saw NG finished re., pursuing any avenue to benefit from Montagne D’Or. Unable to sell the 55% due to sanctions and unable to pursue legally in France as a globally sanctioned company. Unable to use Court of Arbitration as it would at very least run afoul of environmental stops and as a private company unable to use company public value destruction as a focus.
4. Anti OREA interests note it has nothing to offer others; it is basically broke (who knows if and when the FSC will render a decision - the exploration licences now don't matter, the daily compensation might for a court case). OREas project 45% is buried in sanctioned and administrative obstacles that it can’t fight and there is no available legal means to connect with NGs 55%.
5. France (quietly) and its environmental groups (loudly) can claim victory over the FG mine.
IMHO, overall NG and OREA are truly scuppered in terms of Montagne d’Or.
However, is there a back story?
Apart from the companies, everyone else, especially France has now got exactly what they have wanted concerning Montagne d’Or with the least public attention.
Note, CAD was directly responsible for doing France a major favor in terms of blocking both the mine and the two entities' ways forward. Both NG and OREA have written the project off their books.
How could France now look to return a favor to CAD? By settling out of court any CofA case that OREA alone brings that is based on provable entity losses in terms of sunken costs and sp impact related to documented political misleading (not mine value which is zero, it can't be built).
Therefore, from a Russian 8 bill mine valuation, to a NG ½ bill mine compensation legal claim to an OREA CofA claim of maybe US$20 mills + sp impact assessment.
I think what is stated is logical, but where it becomes a real leap of faith is that CAD would expect France to do CAD/OREA a favor for the ‘services rendered’.
Could this happen, we will see. Any other ideas out there?
GLTA -
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