http://www.kitco.com/charts/livegold.html

cheers GF.

StockMarketWire.com
Petropavlovsk has welcomed Sapinda's interest in attempting to provide a refinancing solution, but noted it did not include a sufficiently detailed or funded proposal which can be put to Shareholders as a viable alternative to the refinancing plan announced by the Company on 2 February 2015 .

For more than a year, the Group has held detailed discussions with its Russian and Chinese lending banks, with the broad group of Existing Bondholders, and with several third parties.

In these, the objective of the Board has been to achieve a certain and secure refinancing while retaining the right for its existing Shareholders fully to participate in a solution that is supported by all the lenders.

Evaluation of the available possibilities included a proposal put forward by Sapinda in October 2014, which the Board at the time considered to be unworkable.

There was no detailed offer, no independently verifiable source of funding, no fully pre-emptive right for existing Shareholders and it did not gain the support of the Existing Bondholders.

The directors are acutely aware of the pressing time constraints and the need for a Shareholder vote to approve the Current Refinancing Plan. This is fully funded, thanks to the underwriting provided by the Bondholders and others, and it secures the immediate future of the company.

At the same time it retains value for existing Shareholders and has support from all Senior Lenders including ICBC, from over 90% of Existing Bondholders and from all Shareholders whose proxy or instruction forms have to date been received by the Company.

Should sufficient shareholders vote against the resolutions so that they are not passed, there is a very high risk that the Company would be forced into an insolvency process, such as administration or liquidation, and that shareholders would lose their entire investment in the Company.

As such, to ensure the continuation of the Group's operations in case the resolutions are not passed, the Group, as an important part of its contingency planning, is progressing an alternative implementation route with its Senior Lenders including ICBC, and

Existing Bondholders where shareholder support would not be required and all the shareholders may lose their entire investment in the Company. If the shareholders approve the Current Refinancing Plan the contingency planning will no longer be necessary.

The Board accordingly urges all shareholders to vote (or procure voting in respect of their shares not registered in their own name) in favour of the resolutions to approve the Current Refinancing Plan as soon as possible.

Comment

Board Response to Further Sapinda Announcement
Following its announcement yesterday in response to the statement made by Sapinda Holdings B.V. ("Sapinda") on 17 February, the Board of Petropavlovsk notes the further announcement made yesterday by Sapinda and confirms the receipt of a letter as outlined in yesterday's announcement.

The Company is of the view that the proposal has similar flaws to that put forward by Sapinda last year, and does not take into account some of the important contractual and regulatory provisions to which the Group is subject. In addition, neither the announcement made yesterday by Sapinda, nor the letter received by the Company, provides sufficient detail to allow the Company fully to evaluate the deliverability of the proposal or the time to act upon it. Furthermore Sapinda's proposal assumes agreement with Bondholders on a transaction that is significantly different to that achieved so far.

Accordingly, the Company re-iterates that should sufficient shareholders vote against the resolutions so that they are not passed, due to the time restraints there is a very high risk that the Company would be forced into an insolvency process, such as administration or liquidation, and that shareholders would lose their entire investment in the Company.

The Board therefore urges all shareholders to vote (or procure voting in respect of their shares not registered in their own name) in favour of the resolutions to approve the Current Refinancing Plan as soon as possible.

Hambro warns

i've cut my losses as on consideration i think there's plenty more blood to be seen

Here are the facts so far as far as I can see:

1. Petropavlosk is in the midst of a critical Rights Issue to secure the Company's immediate future.

2. A third-party Private Equity Fund called 'Sapinda' has chosen this precise moment to attack the Company.

3. Sapinda's motives remain unclear - they say they can offer an alternative solution but yet fail to provide adequate details of it; and do not state who supports them (and furthermore it is crystal clear from POG that the Bondholders already rejected their offer)

4. Their offer is simply too late to be actioned anyway; so even if they said what they were offering (which they don't) it cannot be implemented before the Company default on their Bonds

5. Therefore, should they succeed; it will likely prove disastrous for both the Company and Shareholders.

The Company has issued two RNS announcements on them (both of which have been kindly posted by HARRYCAT above).

More info on the man behind Sapinda - Lars Windhorst - can be found in this article from the Telegraph:

http://www.telegraph.co.uk/news/politics/conservative/7784393/Conservative-Party-took-10000-from-Convicted-Criminal-Lars-Windhorst.html

If we trust Sapinda over the Company and either fail to vote or vote no; then the RI will fail and all shareholders will loose everything.

Everybody; PLEASE DO YOUR OWN RESEARCH. Sapinda is a very real threat. People must vote 'Yes' before it is too late.

In the interests of full disclosure; I hold shares in POG (I'm a long term shareholder) and I have already voted 'Yes'. I am deeply suspicious of Sapinda, their timing and the lack of adequate details. The board's two RNS replies to their press articles make it clear that they don't have a viable alternative anyway.

So, thanks to Sapinda, it now seems it's all the more urgent to vote 'yes'... stressful times indeed.

GLA.

Confess I'm contemplating the same, painful though.
2517

I've just had a phone call from POG (or their appointed agent) urging me to vote. I hold stock through a nominee account so interesting that they have taken the trouble to trawl through the register. Not sure how they got my phone number though I am listed in the phone book so presumably not that difficult. They seem very keen to ensure that I vote......and in their favour.

HC - have never heard of shareholders being called this way before.

Petropavlovsk creditor open to rival rescue plan

Quick post to mention that if you hold your shares in a Nominee Account (which is the case for many Private Investors using e.g. Barclays, HSBC share dealing services etc.) then today may be your last chance to vote 'Yes' in the forthcoming Rights Issue.

There's certainly been much speculation on the various investor bulletin boards about the RI. The basic fact is that there are Two Resolutions (Resolution 1 and Resolution 2) which shareholders like us must vote on. If either fails to pass the RI will fail. Both resolutions need 75% of the vote to pass for the 'Yes' voters.

In the event that the RI fails to pass, the Company has publicly stated (read there last two RNSs) that the Administrators will likely be called in and we - as shareholders - will like loose our entire investment...


Therefore, please everybody do vote 'yes': time is running out for you to vote.

Many brokers have their own voting deadlines, which are different from the Company's deadline of the 24th Feb. Many require your vote TODAY.

Please pick up the phone and vote: we need every single vote we can get to ensure the RI passes, for obvious reasons. It only takes a few minutes. So please vote.

Good luck everybody - and many thanks if you have already voted 'Yes' (as I have) - GRB.

Resolutions passed, the entitlement of RI shares @ 5p expired on 24/2/15, so if the buyers now are not entitled doesn't that massively (over 3b shares to be issued) dilute their holding immediately?
2517

Admission of Nil Paid Rights
Petropavlovsk PLC (the "Company" and, together with its subsidiaries, the "Group") announces that, pursuant to the Rights Issue announced on 2 February 2015, 3,102,923,272 New Ordinary Shares of 1 pence each will be admitted to listing on the premium listing segment of the Official List of the UK Listing Authority and will be admitted, nil paid, to trading on the London Stock Exchange plc's main market for listed securities at 8.00 a.m. today.

What's the view here now?

Very long term recovery might be on the cards, imo but going to be a bottom drawer 'file & forget' stock for existing holders as can't see the sector or the POG financial position getting any better in the short term. I will probably take up the rights as it will give me a better average, but it's hope rather than expectation.

Thanks Harry - much against my own past experience with these, I've taken a SB @6.01.

Oh calamity.

It's just dilution, mitzy! Nothing to worry about.......yet.

HI,
Do you know when the deadline is for taking up the rights?

No idea yet. My broker has said do nothing until the rights become available. They will advise when.

Thank you.
One of my worst investments.
At least FTO is going to give some money!