Petronas It is apparent that Petronas has chosen to use the delay of their construction decision as a negotiating ploy. An excellent overview of the situation is written by Mr. Brent Jang, in the Dec.04.14 The Globe and Mail, story: http://ow.ly/FvkLq . Excerpt: TD Securities Inc. analyst Scott Treadwell said, "We believe that the deferral is more of a negotiating tool than a reassessment of the viability of the project,"
European Sub-sea Pipe laying corp orate meeting:
On a longer term basis Highbank have provided provisional specifications to a European Company who are
bidding on the undersea portion of the pipeline to Prince Rupert. This bid is unrelated to the Petronas LNG.
New business - early warning guidance:
Highbank has been approached and is in negotiations for an ex-provincial multi-million ton aggregate order. Further information will be released as a Letter of Intent or agreement is signed.
Financing:
Gary Musil, CFO/Director comments , " Since October 1, 2014 Highbank has issued 10,076,500 shares at prices of $0.10 - $0.15 through the exercise of share purchase warrants for gross proceeds of $1,266,260. The Company has also issued two tranches of 1,193,000 shares to settle part of the barge load-out construction debt of $525,000. We would like to thank all the shareholders who have participated in these past financings, convertible debentures, shares for debt, and warrant exercises; as we near completion of the Swamp Point North site development, barge load-out construction, and equipment purchases. Our total Capital Cost from initial acquisition is expected to be under $8 million." " The Company currently has remaining 5,602,000 warrants with 4,232,000 exercisable at $0.12 before February 27, 2015. With current cash on hand and cash inflow of $550,000+ from outstanding warrants the Company anticipates being able to finance its costs during this production shipping delay. "
The execution of these previous warrants reinforces the confidence that shareholders have in HBK and the potential in the near future of the Company's advantageous position as an aggregate producer. New York Times recently reported the construction aggregate industry has grown 10% a year since 2008, http://ow.ly/FxVVi
Summary:
Re-capping the progress Highbank Resources has made over the last year is impressive. The Company has moved from exploration/development to a production facility. Highbank has obtained permits from all Government Departments to construct the Swamp Point North site. The approvals include good relations and on-going cooperation with the affected and involved First Nations. The equipment and plant have all been purchased, the site has been developed, and a significant loading facility constructed and commissioned. Having achieved this, we now anticipate that 2015 will be a year in which our efforts return revenue cash inflows.