UXA Resources: 'what a muddle we be in', as the family silver is sold off for not much. Trying to sell GAA Wireline and PFN Tool bought for $6 million and lucky if they get $3 million, and other tenements as well.
Now a rights issue of one for one at 0.15c each. Problem is, the Annual Report is delayed and should have been out in October and the shares are not trading. On top of that Lind want their $500k back plus $100k extra charges and though La Jolla Cove have stayed their ground on the $800k they are owed, that's the only bright point at this stage.
Still want to carry on drilling in NSW and South Australia to firm up the possibility of a Zinc/Copper/Silver mine and then Copper - Gold. Then there is Nabarlek North and Pandamus West for lackluster uranium and some drilling results outstanding, not a happy scenario.
The rights issue isn't underwritten and a lot of foreign investors in many domains are left out. If UXA sell GAA for $3m and half the rights issue is taken up to raise about $650k, then debts can be paid off and leave $1.3m extra to carry on. Not good but not an end game, especially if further drilling is successful.
$78k was raised in a placing recently at 0.15c that is mildly encouraging. Two directors have resigned and UXA look to be cutting costs, they have to.
If the shares return to trading soon and the directors appear confident about this, I think, then that would be encouraging.
Last edited by noirua; 10th-December-2012 at 01:02 AM.
So UXA trundle on and on and on. Now they've sold their remaining interest in the J/V with Straights Resources for $375k, not much again but welcome I suppose.
MD Dr Russell Penney is spending his time now trying to sell GAA Wireline and PFN Tool and I note elsewhere that Paladin have shown an interest (not confirmed) and one other at 4 mile. An advert has been put out as neither MAY be interested in paying all cash in these hard times for uranium.
It looks, though not confirmed, that UXA want to unload interests in the Canning Basin area and maybe Nabarlek North and Pandamus West. Some of the drilling results at Nabarlek are being kept under wraps and the true reason is unknown but may be part of negotiations with RIL Australia, a subsidiary of Reliance Industries of India.
Still frozen for a bit longer...
Only dead fish go with the flow..
As to the GAA Wireline sale, there seems to be an all quiet position at UXA after putting out the 'For Sale' note about 3 weeks ago: About then I got an abrupt email reply concerning the GAA sale that did not inspire confidence -- I did add a bit of advice etc which did not get the 'thankyou for your interest' normal response from companies.
UXA must sell assets to book about $2.5 to $3mn if they want to cover all debts and leave some cash over for running costs.
I think UXA should setup similar to Sirius Resources and live out of a cabin onsite when drilling. There is a need for directors to leave their comfort zone and peg costs to an absolute minimum -- UXA need costs down to $500k per annum to afford to drill the Polygnum area.
From what I read on the announcment the suspension should have been lifted yesterday. They are still not trading. I assume they must be getting another extension on their suspension?
Only dead fish go with the flow..
UXA eyes $1.4m raising to clear debt
The above has not been announced by the ASX. Basically says $1.9m will be raised by a 1:1 rights issue and placing at 0.15c a share, together with one option. Patterson are dealing with the rights which is partly underwritten to $700k.
Company will be debt free on the sale of GAA Wireline and have an expected minimum $1.9m in cash.
The mining sector is even worse now and I'm not sure the drivers of this bus can see the road ahead that clearly.
Companies need to generate cash. Borrowing, placings and rights issues are not the way and drilling in hope at tenements with no pedigree, in this market, is hopeless without a few million dollars in the bank.
Looks a bit better now. Handed a paddle whilst white surf rafting, better than nothing. Looks as if they are fairly advanced in selling GAA Wireline and PFN Tool.
Produced a quarterly report that looks as if it is desperately pleading for cash, anyway, all is not lost yet.