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The market likes the news!!!
Carl, do you currently own shares? If you do and haven't sold, what is a realistic scenario you might hope for to increase current share price. FWIW - The Baja website was just updated and they have inserted 49% ownership in the old 70 spot. They also left that they expect updated reports by end of month on website.
(I am a holder with current average cost of .10 )
The credit lines would never be re-opened for 10%,so draw your own conclusions to what the KC is doing.
Post from Jaydogg on Stockhouse today:
Koreans are meeting with lenders to open credit lines. Srk will be published week of the 21st. Two interested parties are reviewing project for possible offer.
The question,is why,if this was done?
both replies were interesting.
Thanks.Appreciate the response.
To answer the other part of your question,
You wrote,
“Also,why wouldn't BAJFF not sell their 49% at a decent price to a 3rd party instead of accepting a measly 10% and a loss of almost all of management's personal investments in the company?”
No buyers. BAJFF would have been glad to do so, and was their first choice.
Next up, 17 interested financial institutes to loan money, not interested.
Borrowing against a mine that (A) you do not own 100%. (B) is not operational, and (C) you just screwed up the best chance to finish the mine you’ll ever have. Is not conducive with selling or borrowing. KC was an exception because they had such deep pockets. If it was not for KC, this would of gone bankrupt months ago.
KC had the advantage over BAJFF and took them to the cleaners.
Business is business, if any of us was put in the position of accepting the majority of the risk and finance, we would expect to be well paid for our effort. (My opinion)
The KC wanted to increase the senior debt to include the cost overages. They would of gladly accepted the larger loan amount and reduced BAJFF position by the same.
However, I know that senior debt lenders (8 banks) are not considering loaning more money. Approximately $500,000,000.00 remains to be drawn against the senior loan. The banks are requiring that 100% of the funds needed to complete the mine be available before they release the remaining $500,000,000.00 So the KC will need to have the $300,000,000.00 (approx.) additional overrun funds in place prior to the banks releasing $500M. If for some unknown reason, the short-fall increases to an amount larger than calculated, BAJFF is required to fund their 10% of said short-fall. If they cannot fund their portion of short-fall, KC will and reduce BAJFF’s 10% ownership to whatever that remaining % would calculate to.
If BAJFF falls to less than 8% ownership, they lose their last seat on the board.
On this note, the original loan included the Bi-metal extraction be in production. As of my last call, the extraction plan was still required and will be operational.
BAJFF appears to be reduced to 14% of the original ownership. 70% ownership to 10% If additional funds were found, BAJFF could buy additional percentage of the mine. (prior message)
If your questions are not answered, I suggest you give BAJFF a call.
You didn't answer my question.
Of course,the Koreans would retain 90% if they choose to do the financing and decide they want the 90% for it.I've seen the possiblity from the PR.
What I'm asking you,is why would the Koreans be asking the lenders to re-open the credit lines for BAJFF if all they were going to own was 10%,and the Koreans would know that's all they were going to own.No lender would think of throwing more money at a losing proposition.BAJFF,with all of 10% would never take it anyway.What would be the point?
Also,why wouldn't BAJFF not sell their 49% at a decent price to a 3rd party instead of accepting a measly 10% and a loss of almost all of management's personal investments in the company?
If 10% was a foregone conclusion,why wouldn't it have been announced by now.Why the delay?
What I'm trying to get at,is what did Tom say to you about any of these questions?Did you ask him about any of this.Because it sounds like you're giving a personal opinion rather than giving us the possibilities the company is looking at.Or did Tom say they've reached the end,and a Royalty is the best they can do?Again,thanks in advance.
The answer is rather simple. The KC takes the debt along with the assets. The Koreans will assume 90% of the debt and BAJFF will end up with 10%.
There is a scenario where BAJFF retains up to 39% of the mine however, they must have the cash to pay the KC. BAJFF does not have any cash to speak of, nothing like the hundreds of millions of dollars required to retain a higher percent than 10%.
The current management is functioning as temporary management while turning over the operation to the Koreans. It would appear this current team will stay in control until the end of this year. Then new majority owners and downsize the controlling staff of BAJFF.
BAJFF will become a shell of its former self, reviewing ledgers intent on displaying the amount of income earned by the mine.
BAJFF will calculate their 10 % and pass the earnings to te shareholders.
Carl,from the info from others who have spoken to Tom,supposedly the Koreans are still working on getting the credit lines open for Baja.No creditors would open up these lines if all that Baja would retain is 10%.How would they ever pay their debt back?The Koreans would know this,so why bother trying if this is the best they would end up with.
In your conversations with Tom,did it sound like there was any chance they could retain a big percentage of the company in any of the different scenarios they are contemplating?Did you ask why management would care to stick around to complete this project if all the shares and personal investment they put in was worth next to nothing?The Koreans want the ore,not the operation of the mine.Just wondering what was likely to occur from Tom's point of view.Can you fill in some of this information?TIA
Thanks for all that d.d., Carl.
Value, It seems to me you are being generous. 10% is the contractual position BAJFF will land at. BAJFF would need to pay the KC for every percentage point above 10%. This cost would amount to about $110,000,000 per additional 10%. BAJFF’s position would not support loans for additional percent purchases. The stock price would not support dilution to raise funds. This leaves BAJFF in a difficult position.
On the plus side , CEO Tom Ogryzlo, is brilliant and on the side of the common shareholder. His idea as of late is to convert BAJFF into a “Royalty Trust”.
This would guarantee shareholders that any “net” profit would be paid out to the shareholders.
Latest DD seem to indicate that 10% ownership would pay between $.04 and $.09 per year, per share. So if this was to come together, the stock is at a real bargain at this price. However, this all depends on the KC and continuing forward with Phase II. That is the last step for finance.
Carl, thanks for this. I never took a position in BAJ even at the low prices b/c i was concerned about just what percentage of the revenues/earnings BAJ would still own by the time the Koreans and any others got finished with coming to the rescue on the financing. Previous to all this hullaballoo it was, what, 70%? Now looks likely to be only about 20% give or take several percentage points, right? Please correct me if i'm wrong.
There has been several discussions about BAJFF.
My search of contracts show a position that may not be generally known.
The Korean Consortium (KC) have paid $90 million in the past weeks to continue Baja mine to move forward.
KC are also responsible for 30% of the senior debt, as of this DD the total drawn is $600,000,000.00 X 30% = $180,000,000.
The KC have the financial ability to complete the mine. So, if the mine was to fail, they would be more than capable to pay back their portion of the loans. ($180M
If the KC decides not to go forward with Phase II finance, all of the money invested to date in credited towards the $180M they would owe.
So to think that the Koreans are shuffling additional funds into the mine is simply not true.
As long as the project is still viable, I believe the project will go forward.
Source, conversations with CEO Tom Ogryzlo at 604-685-2323
Mindless pumping. Are you a bot or a human being?
Let’s review, .30 by the close of today, buyout by the end of today, and now funding by tomorrow. You’re a busy dreamer…
0.30 tomorrow it's what i know
Korean BBQ dinner to celebrate if there is a financing announcement.
Hopefully a bidding war breaks out with some other group.
some what? Can you explain please?
Celebrate with some K BBQ?
The koreans will fund phase II... News monday morning.
We will go to 0.30 at open
have to wait and see what they want to do. Go all in or not.
He does not, he wants you to think there is.
Why do you think buyout coming?
sluuuuuuuuuuuuuurrrp
hey fundamental...
Wath your prediction here..
Target's
Man, are you right on the money.
I know this news was nothing, just the Sheepeople wanting this to be great news, when it has been telegraphed by the CEO for weeks.
Not the time yet.
You guys always sound like a boiler room pump-n-dump group to me.
Never ANY discussion of fundamentals or intelligent T.A., either.
But then if you were stock manipulators i suppose you'd never fess up to it anyway.
mee too
0.50
i will wait.. i guess it is a buyout candidate
what's your exit point?
Thanks
not me the market will decide i am holding my shares
but... how long $$$?
this is a long term investment if you are a day trader it is not for you
target tomorrow ?
load man.. churning well it will be
Hello Blue....
EOD today?
Whats going on?
yes it is..
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