NEW BACKERS 1ST THING MONDAY.OPEN UP 2.5P

Update on Proposed Financing (Frontier Mining)

TIDMFML

RNS Number : 8263L
Frontier Mining Ltd
19 January 2009

?

19 January 2009
AIM: FML


Frontier Mining Ltd
("Frontier" or "the Company")


Update on Proposed Financing


Further to the announcement made by the Company on 22 December 2008, the Company
wishes to inform the market that negotiations regarding the GBP9 million debt
facility and the proposed acquisition of the assets from Silk Route Resources
Limited are at an advanced stage. However, there are no guarantees at this
stage that these negotiations will be finalised. In light of this progress,
Coville Intercorp Ltd has agreed to further defer the repayment of the US$7.7
million Convertible Loan Note until close of business on 23 January 2009.

The Company will update the market further in due course.

Ends

Not a done deal yet - but what realistically is the alternative? if the company does not continue as a trading entity with the scale of it's assets then it must be broken up and proceeds given to creditors and the rest distributed to shareholders - would that even be preferable (circa 6 - 8p/share)?

Best to sell its gonig nowhere.

and the reasoning is???

Good start to the week:-

sell..

mitzy - 12 Jan 2009 14:54 - 2 of 2
What a remarkable share worth at least 4p when their funding problem is resolve

http://www.moneyam.com/InvestorsRoom/posts.php?tid=13571#lastread

Monday, January 19, 2009

Frontier Mining says debt and acquisition talks at an advanced stage

Frontier Mining said negotiations regarding the planned 9 million debt facility and the proposed acquisition of the assets from Silk Route Resources Ltd are at an advanced stage, however, there are no guarantees that these negotiations will be finalised.


In light of this progress, Coville Intercorp Ltd has agreed to further defer the repayment of the US$7.7 million convertible loan note until close of business on January 23 2009, an extension of four days on the most recent deadline. The agreement between Frontier and Coville as part of the payment for the Benkala transaction in 2007 originally required Frontier to repay the sum by November 19 2008. The deadline had subsequently been pushed back twice.


Frontier Mining said in mid-December 2008 that its internal financial resources were presently inadequate to repay Coville, therefore an extension of the repayment and completion of alternative funding arrangements are imperative to ensure that Frontier Mining remains a going concern.
Frontier said today it will update the market further in due course.

http://www.proactiveinvestors.co.uk/companies/news/4056/frontier-mining-says-debt-and-acquisition-talks-at-an-advanced-stage-4056.html

The 3% Holding in company RNS on 12 January 2009 was a purchase by Nortrust:-

'The small to mid cap miners fell by an average of just over six per cent, though as usual there was a considerable range. The largest rise was recorded by Frontier Mining (AIM: FML), shares in which more than doubled from 0.2p to 0.45p on no news, although a company called Nortrust did cross the three per cent ownership threshold the previous week. The key to the upward share price move may lie in an announcement made in late 2008 about a US$9 million financing package that was scheduled to be made available on 18th January, most of which will be used to pay down an existing debt facility of US$ 7.7 million. One other problem for Frontier is that its very recently appointed broker and NOMAD, Libertas, is having problems. Libertass listing was recent suspended pending clarification of the companys financial situation, and that development was followed last week by the resignation of its NOMAD'.

http://www.minesite.com/nc/minews/singlenews/article/that-was-the-week-that-was-in-london-6be95824af/41.html

Excellent....RAB also taken a 4% stake:-

Frontier Mining Holding(s) in Company

TIDMFML

RNS Number : 8618L
Frontier Mining Ltd
19 January 2009

?

19 January 2009 AIM: FML

Frontier Mining Ltd
+-----------------------------------------------------------------------------+
| TR-1: Notifications of Major Interests in Shares |
+-----------------------------------------------------------------------------+


+-----------------------------------------------+------------------------------+
| 1. Identity of the issuer or the underlying | Frontier Mining Limited |
| issuer of existing shares to which voting | |
| rights are attached: | |
+-----------------------------------------------+------------------------------+


+-------------------------------------------------------------------+----------+
| 2. Reason for notification (yes/no) |
+------------------------------------------------------------------------------+
| An acquisition or disposal of voting rights | YES |
+-------------------------------------------------------------------+----------+
| An acquisition or disposal of financial instruments which may | |
| result in the acquisition of shares already issued to which | |
| voting rights are attached | |
+-------------------------------------------------------------------+----------+
| An event changing the breakdown of voting rights | |
+-------------------------------------------------------------------+----------+
| Other (please specify):______________ | |
+-------------------------------------------------------------------+----------+


+------------------------------------------------+------------------------------+
| 3. Full name of person(s) subject to the | CAPITAL PLC ACTING AS |
| notification obligation: |DISCRETIONARY MANAGER OF RAB |
| | SPECIAL SITUATIONS (MASTER) |
| | FUND LIMITED |
+------------------------------------------------+------------------------------+
| 4. Full name of shareholder(s) (if different | |
| from 3.): | |
+------------------------------------------------+------------------------------+
| 5. Date of the transaction (and date on which | 13/01/2008 |
| the threshold is crossed or reached if | |
| different): | |
+------------------------------------------------+------------------------------+
| 6. Date on which issuer notified: | 19/01/2009 |
+------------------------------------------------+------------------------------+
| 7. Threshold(s) that is/are crossed or | 4% |
| reached: | |
+------------------------------------------------+------------------------------+
| 8. Notified details: | n/a |
+------------------------------------------------+------------------------------+


+---------------+-----------+--+----------+---------+-----------+-----------+--+------------+----------------+--+-----------+
| A: Voting rights attached to shares
|
+---------------------------------------------------------------------------------------------------------------------------+
| Class/type | Situation previous to | Resulting situation after the triggering
|
| of shares | the Triggering | transaction
|
| | transaction |
|
+
+-----------------------------------+-----------------------------------------------------------------------+
| | Number of | Number of | Number | Number of voting |
% of voting |
| | Shares | Voting | of | rights |
rights |
| | | Rights | shares | |
|
+ + +
+-----------+---------------------------+-------------------------------+
| | | | Direct | Direct | Indirect |
Direct | Indirect |
| | | | | | |
| |
+---------------+--------------+--------------------+-----------+--------------+------------+-------------------+-----------+
| ORDINARY | 12,749,000 | 12,749,000 | n/a | n/a | 7,499,000 |
n/a | 3.43% |
| SHARES | | | | | |
| |
| USU314441093 | | | | | |
| |
+---------------+--------------+--------------------+-----------+--------------+------------+-------------------+-----------+
| B: Financial Instruments
|
+---------------------------------------------------------------------------------------------------------------------------+
| Resulting situation after the triggering transaction
|
+---------------------------------------------------------------------------------------------------------------------------+
| Type of | Expiration | Exercise/ Conversion Period/ | Number of
| % of voting |
| financial | date | Date | voting rights
| rights |
| instrument | | | that may be
| |
| | | | acquired if
| |
| | | | the instrument
| |
| | | | is exercised/
| |
| | | | converted.
| |
+---------------------------+-------------+---------------------------------+--------------------------------+--------------+
| n/a | n/a | n/a | n/a
| n/a |
+---------------+-----------+--+----------+---------+-----------+-----------+--+------------+----------------+--+-----------+
+--------------------------------------+----------------------------------------+
| Total (A+B) |
+-------------------------------------------------------------------------------+
| Number of voting rights | % of voting rights |
+--------------------------------------+----------------------------------------+
| SEE ABOVE | 3.43% |
+--------------------------------------+----------------------------------------+



+-------------------------------------------------+----------------------------+
| 9. Chain of controlled undertakings through which the voting rights and/or |
| the financial instruments are effectively held, if applicable: |
+------------------------------------------------------------------------------+
| RAB Capital Plc acts as investment manager for RAB SPECIAL SITUATIONS |
| (MASTER) FUND LIMITED. RAB Capital plc does not act as custodian for its |
| clients and therefore the shares are held in the nominee name of the |
| custodian of its clients, which is |
+------------------------------------------------------------------------------+
| Proxy Voting: |
+------------------------------------------------------------------------------+
| 10. Name of the proxy holder: | n/a |
+-------------------------------------------------+----------------------------+
| 11. Number of voting rights proxy holder will | n/a |
| cease to hold: | |
+-------------------------------------------------+----------------------------+
| 12. Date on which proxy holder will cease to | n/a |
| hold voting rights: | |
+-------------------------------------------------+----------------------------+
| 13. Additional information: | n/a |
+-------------------------------------------------+----------------------------+
| 14. Contact name: | LEGAL TEAM |
+-------------------------------------------------+----------------------------+
| 15. Contact telephone number: | 020 7389 7000 |
+-------------------------------------------------+----------------------------+


Annex Notification Of Major Interests In Shares
+--------------------------------------------+--------------------------------+
| A: Identity of the person or legal entity subject to the notification |
| obligation |
+-----------------------------------------------------------------------------+
| Full name (including legal form for legal | RAB CAPITAL PLC |
| entities) | |
+--------------------------------------------+--------------------------------+
| Contact address (registered office for | 1 ADAM STREET, |
| legal entities) | LONDON WC2N 6LE |
| | |
+--------------------------------------------+--------------------------------+
| Phone number | 020 7389 7000 |
+--------------------------------------------+--------------------------------+
| Other useful information (at least legal | |
| representative for legal persons) | |
+--------------------------------------------+--------------------------------+
| B: Identity of the notifier, if applicable |
+-----------------------------------------------------------------------------+
| Full name | ALL AS ABOVE |
+--------------------------------------------+--------------------------------+
| Contact address | |
+--------------------------------------------+--------------------------------+
| Phone number | |
+--------------------------------------------+--------------------------------+
| Other useful information (e.g. functional | |
| relationship with the person or legal | |
| entity subject to the notification | |
| obligation) | |
+--------------------------------------------+--------------------------------+
+----------------------------------------------------------------------------+
| C:Additional information |
+----------------------------------------------------------------------------+
| n/a |
+----------------------------------------------------------------------------+

ENDS

Still a sell the funding issue is not resolved..sell its another RBS..

But what realistically is the alternative? if the company does not continue as a trading entity with the scale of it's assets then it must be broken up and proceeds given to creditors and the rest distributed to shareholders - would that even be preferable (circa 6 - 8p/share)?

Very large buy for 6,607,919 shares just come through at 0.45p. There is a buyer out there!

I dont know the answer I do know RBS will be bust by Friday.

A 30k investment is not to be discounted lightly imo.

Looks like someone bought a 3% stake today:-

3% of 218,120,095 shares = 6,543,602 shares and our buy was for 6,607,919 shares. They've just gone over the 3% notifiable threshold and a Holdings in Company RNS should be on its way.

rumours are news will be here today.fill your boots asia acquisition is a cracker.loan note now repaid and 6 mill cash for more acquisitions.5p+

I disagree it looks grim if no immediate funding is found. I'd suggest administration and distribution of realised assets to settle creditors could see the biggest windfall of any AIM stock for shareholders - if a little prolonged. NAV assuming 'current' situation i.e. after liabilities is 9.9p/share - I can't believe even in a fire sale it would raise any less than say 2 - 3p/share for distribution..

Alot remains to be seen, but I'm still positive about news this week. If the deal was dead in the water it would have terminated yesterday morning.

Sell now its doomed as the banks are.

Why has that any relevance?

As far as I've done my research NAV is around 10p and management seem to think Benkala is worth 20p on its own and that too on a conservative basis.