Obviously there is the potential for some signficant near-term newsflow that could have a positve effect on the stock price (eg Kami feasibility study and subsequent funding, Julienne lake proposal).
But another thing that had dropped off my radar was their NLRC interest. This is clearly less significant than the above, but may not be immaterial. From the altius website:
On November 20, 2009 the Court accepted an NLRC proposal to the creditors for a project care and maintenance plan for up to 36 months and dismissed all further requests for creditor's claim adjustments for voting purposes. NLRC continues to seek qualified interested parties for the potential purchase of its refinery project and associated permits
So the creditor standstill ends around now. Looking back at their annual reports it seems that Altius have a $30m secured loan to NLRC on the books at zero. From their 2008 report:
In December 2007, the Corporation loaned $30,093,000 in the form of a convertible demand loan to NLRC. The non-interest bearing demand loan is secured by the assets of NLRC and is convertible at the Corporation’s option into 1,440,000 shares of NLRC. NLRC used the funds to make a milestone payment to IJK consortium regarding the purchase of steel and manufacture of heavy wall vessels, which are considered long-lead time items required for the proposed oil refinery project.
Does anyone on the board have any more information on this that might help work out how much Altius could get back? Or whether NLRC are likely to apply for a further extension of the creditor protection?
N.
