VRE - View Resources

[MS+Tradesim]

From NAV's ann this morning:

"BRONZEWING PURCHASE
The Directors of Navigator Resources Limited (“Navigator”) (ASX: NAV) are pleased to
announce that the Company has notified the Administrators that it is proceeding to
completion of the acquisition of the Bronzewing Gold Project by the end of
September 2009, after securing debt financing and broker firm equity funding
commitments."

 

[amazme]

From NAV's ann this morning:

"BRONZEWING PURCHASE
The Directors of Navigator Resources Limited (“Navigator”) (ASX: NAV) are pleased to
announce that the Company has notified the Administrators that it is proceeding to
completion of the acquisition of the Bronzewing Gold Project by the end of
September 2009, after securing debt financing and broker firm equity funding
commitments."

I seen this today aswell. Im wondering what does this mean for those View shareholders now? I all but lost hope of anything in return from any sales or re-listing....

 

[jonojpsg]

I can't understand why there wouldn't be a return of some value to shareholders?? There wasn't that much debt hanging over VRE was there - can't remember offhand? Surely the $10m from Bronzewing plus the cashflowfrom Carnilya Hill would be enough to put the company back on the books again?

Pisses me off when I lose money in a way that looks like the insiders get looked after and the plebs get shafted Same thing with other companies that get put in receivership then get relisted, eg Tassal.

How is it justified that all the existing equity in a company can simply be wiped out, then the exact same assets get relisted, effectively resold, with new equity? Surely if the assets have the value that enables them to be sold, then that value should get passed on to existing shareholders after debt has been paid?

 

[amazme]

I can't understand why there wouldn't be a return of some value to shareholders?? There wasn't that much debt hanging over VRE was there - can't remember offhand? Surely the $10m from Bronzewing plus the cashflowfrom Carnilya Hill would be enough to put the company back on the books again?

Pisses me off when I lose money in a way that looks like the insiders get looked after and the plebs get shafted Same thing with other companies that get put in receivership then get relisted, eg Tassal.

How is it justified that all the existing equity in a company can simply be wiped out, then the exact same assets get relisted, effectively resold, with new equity? Surely if the assets have the value that enables them to be sold, then that value should get passed on to existing shareholders after debt has been paid?

Yeah agree with that! Your rite shareholders get very very little or no return when companies end up like this. I guess thats the risks involved in investing in any company on any stock exchange

 

[zoomy jeff]

Other than actually receiving the money at the end of September, this is the was I see it. I may be wrong in my facts and assumptions, so please correct me.

IMC Resources extended the funds in order to stave of Investec from forcing a liquidation. They did so on the the following conditions.
1. All Directors were to stand down.
2. ASX would relist the company once the Administration was over.
3. The rejection by MCR, due to certain conditions not being met, was legally binding.

In order for the company to be relisted an extraordinary meeting must be called in order to elect the Public Company required number of Directors. Once this is done application to relist can be made.

As I see it IMC have always wanted to have shares in a listed company, not to take over it. The loan they have contibuted cannot be converted to shares without the approval of shareholders.

Running a bit blind on this but from information out of MCR reports July to August I would put VRE's proportion of profit before tax for the year at between $4M and $6. This made with an extremely low Nickel price. My believe that the current proven reserves would give VRE's value of Camilya at $35M with a lot of upside.

My sentiment for this company has now reverted to "Hold" for at least a little while and let the rabble sell at what will be initially an undervalued price.

This is my sentiment and I am offering no advise to others.

 

[prawn_86]

I dont think you have much of a choice but to 'hold' because they are suspended. Too bad if you wanted to sell...

 

[jonojpsg]

I dont think you have much of a choice but to 'hold' because they are suspended. Too bad if you wanted to sell...

Yeah haha rub it in why don't you I'm actually feeling like I might yet see something back from this debacle

 

[zoomy jeff]

I dont think you have much of a choice but to 'hold' because they are suspended. Too bad if you wanted to sell...

Dear Prawn, I would suggest you re read my thread i.e.

In order for the company to be relisted an extraordinary meeting must be called in order to elect the Public Company required number of Directors. Once this is done application to relist can be made.

Thank you

 

[Squawkbox]

Great news just out in Mincor's ASX announcement today - A large additional find at Carnilya Hill. Hopefully, this will enhance the chances of a re-listing unless MCR makes a takeover offer first.

 

[Squawkbox]

Announcement by NAV today - its share price went up 30% and has been questrioned by ASX.

Could this be a party reclaiming its interest in View's gold resources now that the price of gold and Navigators' calculations and funding success paint a much rosier picture than the one existing at the start of administration?

 

[MS+Tradesim]

NAV have paid for Bronzewing. Wrote to Ferrier Hodgson a week or two back but they didn't indicate anything useful...so nothing else to report yet.

 

[amazme]

NAV have paid for Bronzewing. Wrote to Ferrier Hodgson a week or two back but they didn't indicate anything useful...so nothing else to report yet.

I too was thinking of writing to them after this landmark was complete though.
Maybe you'll get a response now that NAV have completed the purchase....

 

[Squawkbox]

Jamie Gunnis of Ferrier Hodgson replies to emails very promptly. He indicated to me a couple of days ago that we may expect an update on Ferrirer Hodgson's website and a VRE announcement - but no indication as to how soon, so the suspense continues!

 

[zoomy jeff]

Jamie Gunnis of Ferrier Hodgson replies to emails very promptly. He indicated to me a couple of days ago that we may expect an update on Ferrirer Hodgson's website and a VRE announcement - but no indication as to how soon, so the suspense continues!

For those that may wish to keep an eye on Ferrier Hodgson this is the page:
http://www.ferrierhodgson.com/en/Current Matters/Corporate Recovery Matters/View Resources Ltd.aspx

I have VRE set up in a Etrade Watchlist and the last announcement, June 2009, appeared in the news.

Christmas is very close so I hope you all have been good people!

 

[lynne nette]

view resources

What is the current situation?

 

[MS+Tradesim]

Shareholder update - but it doesn't tell us anything we don't know so not sure why it's called an update!

http://www.ferrierhodgson.com/en/Current Matters/Corporate Recovery Matters/View Resources Ltd.aspx

View Gold is finished. Yet to see what will happen with View Nickel and View Resources (VRE - which was the listed parent entity).

 

[quarky]

Re: BKP - Baraka Petroleum

I won't duel on the issue but here's a chart to demonstrate my point. View Resources (VRE) was delisted and then relisted, although technical parameters were still valid.

View Resources to be liquidated
12-October-09 by Staff Reporters
The administrators of View Resources say they will liquidate the former gold miner as the $16 million from the sale of its Bronzewing mine is used to partly repay a secured loan facility.

In an update today, administrator Ferrier Hodgson said the sale of the mine to Navigator Resources is now complete, with funds to repay a loan facility provided by Austral-Asia Resources and Infrastructure Investments Pty Ltd.

Austral-Asia has put forward a number of variations to View's deed of company arrangement, which is expected to expire at the end of this month, which will be up for the administrators and creditors deliberation, Ferrier Hodgson said.

 

[MS+Tradesim]

Re: BKP - Baraka Petroleum

That article is typical dodgy reporting where facts aren't checked.

Read the shareholder update. It does NOT say View Resources is being liquidated. They state quite clearly that View Gold (a wholly owned subsidiary) is anticipated to be liquidated and the fate of VRE (the parent company that we bought shares in) is yet to be determined. It is still possible that VRE will be liquidated but that is not yet decided. AARI are putting forward further variations to the DOCA to be considered by the administrators and creditors.

===============

VIEW RESOURCES LTD ACN 009 162 949
(Subject to Deed of Company Arrangement) (“View Resources”)
VIEW GOLD PTY LTD ACN 109 351 439
(Subject to Deed of Company Arrangement) (“View Gold”)
VIEW NICKEL PTY LTD ACN 102 771 871
(Subject to Deed of Company Arrangement) (“View Nickel”)
(Collectively the “View Group”)

UPDATE TO SHAREHOLDERS
I refer to the appointment of Darren Weaver and I as Joint and Several Administrators of the View Group on 8 February 2008 and to our subsequent appointment as Joint and Several Deed Administrators on 15 August 2008.
I herewith provide a further update to shareholders:

Sale of Bronzewing

As you would be aware, View Gold entered into a binding sale agreement with Navigator (Bronzewing) Pty Ltd (“Navigator”) on 1 April 2009 to sell View Gold’s Bronzewing assets including all tenements, infrastructure and associated agreements and environmental liabilities attached to the tenements for an amount of $16.0 million (“Purchase Price”).

The Purchase Price comprised of cash of $9.5 million and the assumption of the existing environmental liabilities of $4.2 million and additional environmental bond liabilities imposed by the Department of Mines and Petroleum of $2.3 million.

I confirm that all completion conditions of the sale were satisfied on 31 August 2009 and that remittance of cash proceeds of $9.5 million from Navigator to View Gold were paid on 30 September 2009.

Please note that the net cash proceeds from the sale of Bronzewing assets will be remitted in part payment to the proponent of the View Group DOCA, Austral–Asia Resources & Infrastructural Investments Pty Ltd (“AARII”) who provided the secured loan facility on behalf of the View Group subsequent to my appointment.

Extension of the View Group’s Deeds of Company Arrangement

I advise that the Deed Administrators and the proponent of the View Group’s Deeds of Company Arrangement (“DOCA’s”), AARII agreed on 28 August 2009 that the due date for the satisfaction of the “View Gold Distribution” condition of the View Group’s DOCA’s be extended from 31 August 2009 to 31 October 2009.

The Deed Administrators consider that this extension was in the best interests of creditors for the following reasons:
1. To allow AARII additional time to propose a variation to any or all of the View Group DOCA’s and:
(i) Where a variation is proposed, to allow the Deed Administrators time to convene a meeting of creditors to consider a resolution to vary any or all of the DOCA’s or alternatively reject the variation and place the View Group into liquidation; or
(ii) Where AARII indicates that they do not wish to proceed with a variation to any or all of the DOCA’s, the Deed Administrators will be required to prepare a report to creditors, convene and hold a meeting of creditors to consider a resolution to terminate any or all of the DOCA’s, at which time the View Group would proceed into liquidation.
2. To allow for the completion of the sale of View Gold’s assets to Navigator.
3. The Deed Administrators consider that the extension will not compromise any potential return to creditors of the View Group.

It is anticipated that a number of variations to the View Group’s DOCA’s will be put forward by AARII during October 2009 for the Deed Administrators’ and creditors’ deliberation.

Further, it is anticipated that View Gold will be placed into liquidation, following which we will be in a position to immediately apply to GEERS to have certain employee entitlements paid, subject to the terms and conditions of the GEERS scheme.

I will keep you apprised of further developments in due course.

Should you have any queries in relation to the above matters, please do not hesitate to contact either Derek Keir or Adrian Di Menna at this office on (08) 9214 1444.

 

[amazme]

Re: BKP - Baraka Petroleum

That article is typical dodgy reporting where facts aren't checked.

Read the shareholder update. It does NOT say View Resources is being liquidated. They state quite clearly that View Gold (a wholly owned subsidiary) is anticipated to be liquidated and the fate of VRE (the parent company that we bought shares in) is yet to be determined. It is still possible that VRE will be liquidated but that is not yet decided. AARI are putting forward further variations to the DOCA to be considered by the administrators and creditors.

===============

VIEW RESOURCES LTD ACN 009 162 949
(Subject to Deed of Company Arrangement) (“View Resources”)
VIEW GOLD PTY LTD ACN 109 351 439
(Subject to Deed of Company Arrangement) (“View Gold”)
VIEW NICKEL PTY LTD ACN 102 771 871
(Subject to Deed of Company Arrangement) (“View Nickel”)
(Collectively the “View Group”)

UPDATE TO SHAREHOLDERS
I refer to the appointment of Darren Weaver and I as Joint and Several Administrators of the View Group on 8 February 2008 and to our subsequent appointment as Joint and Several Deed Administrators on 15 August 2008.
I herewith provide a further update to shareholders:

Sale of Bronzewing

As you would be aware, View Gold entered into a binding sale agreement with Navigator (Bronzewing) Pty Ltd (“Navigator”) on 1 April 2009 to sell View Gold’s Bronzewing assets including all tenements, infrastructure and associated agreements and environmental liabilities attached to the tenements for an amount of $16.0 million (“Purchase Price”).

The Purchase Price comprised of cash of $9.5 million and the assumption of the existing environmental liabilities of $4.2 million and additional environmental bond liabilities imposed by the Department of Mines and Petroleum of $2.3 million.

I confirm that all completion conditions of the sale were satisfied on 31 August 2009 and that remittance of cash proceeds of $9.5 million from Navigator to View Gold were paid on 30 September 2009.

Please note that the net cash proceeds from the sale of Bronzewing assets will be remitted in part payment to the proponent of the View Group DOCA, Austral–Asia Resources & Infrastructural Investments Pty Ltd (“AARII”) who provided the secured loan facility on behalf of the View Group subsequent to my appointment.

Extension of the View Group’s Deeds of Company Arrangement

I advise that the Deed Administrators and the proponent of the View Group’s Deeds of Company Arrangement (“DOCA’s”), AARII agreed on 28 August 2009 that the due date for the satisfaction of the “View Gold Distribution” condition of the View Group’s DOCA’s be extended from 31 August 2009 to 31 October 2009.

The Deed Administrators consider that this extension was in the best interests of creditors for the following reasons:
1. To allow AARII additional time to propose a variation to any or all of the View Group DOCA’s and:
(i) Where a variation is proposed, to allow the Deed Administrators time to convene a meeting of creditors to consider a resolution to vary any or all of the DOCA’s or alternatively reject the variation and place the View Group into liquidation; or
(ii) Where AARII indicates that they do not wish to proceed with a variation to any or all of the DOCA’s, the Deed Administrators will be required to prepare a report to creditors, convene and hold a meeting of creditors to consider a resolution to terminate any or all of the DOCA’s, at which time the View Group would proceed into liquidation.
2. To allow for the completion of the sale of View Gold’s assets to Navigator.
3. The Deed Administrators consider that the extension will not compromise any potential return to creditors of the View Group.

It is anticipated that a number of variations to the View Group’s DOCA’s will be put forward by AARII during October 2009 for the Deed Administrators’ and creditors’ deliberation.

Further, it is anticipated that View Gold will be placed into liquidation, following which we will be in a position to immediately apply to GEERS to have certain employee entitlements paid, subject to the terms and conditions of the GEERS scheme.

I will keep you apprised of further developments in due course.

Should you have any queries in relation to the above matters, please do not hesitate to contact either Derek Keir or Adrian Di Menna at this office on (08) 9214 1444.

Well picked up. Maybe they got the company names mixed up. But your right there no where in the update that states VRE will be liquidated...
Still clinging to that glimmer of hope

 

[zoomy jeff]

Read paragraph 1 (11) "If AARI indicate -------, at which time the VIEW GROUP would proceed int liquidation.