Investors' confidence in companies summarising accurately the content of commercial agreements is misplaced

John Robertson

PortfolioDirect

Investors' confidence in companies summarising accurately the content of commercial agreements is misplaced. Black Mountain Resources announced on 24 December that it had entered an agreement with Alcyone Resources under which the latter would help fund its US silver mine developments. In its summary of the agreement, Black Mountain says: Pursuant to the facility, Alcyone will have equal first ranking security and will also have the right to appoint a director ..... Alcyone also made a statement on the same day purporting to summarise the same agreement. It said Pursuant to the facility, Alcyone will have second ranking security after existing secured creditors and will also have the right to appoint a director ..... On 17 December, Canadian (and ASX) listed Teranga Gold released the full texts of two relevant funding agreements so we can check for ourselves. Which is the superior market?


John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...

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