Homeland Energy Group is currently exploring its alternatives to raise the balance of the funds required to satisfy Nedbank, including rights offering. If such rights offering is undertaken, GMR will be entitled to have the loan repaid to the extent of their participation in the rights offering.

The required sum of R70 million will be reinvested in the business through working capital, ongoing commissioning requirements and necessary capital expenditures. This is necessary to establish the required infrastructure to access the life of mine reserves.

The Deed of Company Arrangement was approved by the creditors of the BVI company on June 18, 2009. The terms of the document include Jinchuan providing funds to the company sufficient to meet creditor claims. The Deed of Company Arrangement was signed by all parties on 7 July 2009.

Jinchuan is a company producing nickel, copper, cobalt, rare and precious metals as well as chemicals. It works in industries of non-ferrous mining, concentrating, metallurgy and chemical engineering. It is the major producer of nickel and cobalt in China. Currently, Jinchuan is the largest shareholder of Albidon Limited, holding 18.4% of its shares, as well as US$55mln in secured debt.

Only the banks that have received 1:1 loans are eligible for the 1:3 financing. Alfa Bank received a loan for 10.2 billion roubles from VEB at an interest rate of 8% annually in January 2009, with the 1:1 ratio. In November 2008, bank’s shareholders received a subordinated loan for $320 mln. In April 2009, bank’s president and co-owner Pyotr Aven said that Alfa Bank expects to receive a subordinated loan for 20.4 billion roubles from VEB.

Alfa Bank Holding belongs to Alfa Bank Holding Financial Ltd., which is registered in the British Virgin Islands. Some of its beneficiaries are co-owners of Alfa Group Mikhail  Fridman with a 36.47% stake, German Khan with 23.27% and Alexei Kuzmichev with 18.12%, and Alfa Bank president Pyotr Aven with a 13.76% stake. In the first half of 2009, Alfa Bank was Russia’s seventh largest bank by assets.

Under the terms of the loan from the Bank’s Shenzhen Branch, its principal amount is to be repaid during the period from October 1, 2010 to July 1, 2013, when the then outstanding principal amount of the bank loan is due to be paid. The bank loan is secured by all the land, building, plant and machinery of Feishang Copper, the subsidiary of the BVI corporation.

The primary borrower is Shenzhen Feishang Enterprise Co. Ltd., a related party through common control by the Chairman of China Natural Resources, Mr. Feilie Li. He commented on the loan saying that it “signifies the bank’s recognition of the Company’s copper smelting business and relatively low debt position.” By his words, the BVI company will continue the acquisitions strategy in coal and non-ferrous metal/iron projects. 

The purpose of the bank loan is to finance the operation of Feishang Copper, which is engaged in the smelting and refining of blister/anode copper and sulfuric acid for distribution in the PRC.

The subsidiary of the BVI company, Guizhou Yongfu, is the owner of the mining rights to the Yongsheng Coal Mine. The long-term loan in the amount of  US$29.30 million is being provided by China Minsheng Banking Corp. Ltd., and is to be paid in annual installments of principal commencing in 2013 and terminating in 2017. Its interest is payable quarterly at an annual rate equal to 30% above the over-5-year official lending rate (currently 5.94% per annum).

The US$14.65 million balance of the loan is expected to be drawn down as needed in accordance with the construction plan for the coal mine, which is currently anticipated to be in December 2009. The Yongsheng Coal Mine is not operating yet. The estimated cost of mine construction and development is approximately US$52.74 million to US$58.61 million, and BVI company’s subsidiary plans to finance the balance of the estimated construction costs through a combination of internally generated funds and additional third-party loans.

In his turn, the lender informed that the April 2009 principle and interest payment and all other obligations, along with related penalties, under the promissory note held by such lender were immediately due and payable.

All promissory notes issued in connection with the bridge financing that preceded China Cablecom’s merger with Jaguar Acquisition Corp, include similar principal and interest obligations making approximately US$11 mln – including the US$2.2 mln amount owed to the lender mentioned above. Currently, the BVI company is in the process of discussing and obtaining agreements from the other holders of such promissory notes while it negotiates with its joint venture partners in China regarding its financial obligations.

Capitalized exploration for the three and nine month periods ended September 30, 2008, was $343,399 and $1,279,240 respectively, relating mainly to the Agua Branca and Sao Jorge projects. These amounts compare to  $307,415 and $1,364,137 respectively for the same periods of 2007.

By the end of the period ended September 30, $3 million loan of Talon Metals to another BVI corporation, Saber Energy Corp., was advanced to $6 million. Talon’s due diligence review of Saber is in progress, and both companies are planning to negotiate a pre-merger agreement on or before March 24 of the next year.

JMG Exploration has already updated the status of defaulted loan to the BVI company. Now, JMG announced that on February 8 it entered into an extension agreement allowing Newco to repay the loan and accrued interest until April 30, 2008. If the note is not paid by that time, Newco agreed to have the 1,427,684 shares of Iris which secure the loan immediately transferred to JMG as payment in full of the outstanding obligations.

In the current status update, JMG Exploration informed that both companies have also released each other from any liabilities resulting from the failure of the Share Exchange Agreement to be consummated. The US company also reported that the Fellows project was sold effective January 31, 2008, for approximately $385,000.

The BVI-incorporated Samsara purchased almost 4.25 million shares between August 17 and September 14 from the market. It was done after the company received a loan of $300 million from London-based Tata Ltd., which carries an annual interest rate of 6.25%. On August 20, Samsara drew $135 million under the terms of the loan agreement; the amount of another $100 million was drawn by the company on September 11, and later a final sum of $65 million.

Now IHC want to discuss forming an alliance with Orient-Express Hotels that would probably include combination of the international properties of the two companies. In a filing with the SEC, it said it had delivered a letter last Friday to James B. Hurlock, chairman of Orient-Express Hotels. After the proposed dialogue with Orient-Express, IHC and Samsara would review their ivestment in the company on a regular basis. Then, the company would decide whether to acquire additional shares in the company or dispose of all or a part of the shares is has bought.

By words of IHC vice-chairman R.K. Krishna Kumar, “The possible combination of the two brands will create a powerful competitive advantage.”

BVI-based Newco currently owns about 14.5% of shares of Iris Computers Ltd., a corporation organized under the laws of India and one of the leading distributors of IT products in India. In the closest time, JMG expects to execute documents providing for a $3,000,000 loan to the BVI company, to enable Newco to purchase39% equity interest in Indian corporation.

The closing of the Share Exchange Agreement is conditioned by the delivery of 2007 US audited financial statements, partial year review for 2008 for BVI-based Newco and Iris, and approval of the share exchange transaction by JMG shareholders.  The transaction is expected to close until December 31, 2007. If the JMG share exchange with Newco shareholders fails to close, the BVI company will be obligated to repay the $3,000,000 loan to JMG on or before December 31, 2007.