Ann: New coal tenements to be acquired , page-8

Christem
It was I, who raised the prospect of trouble ahead if Exxaro were to exercise the put option to put financial pressure on RES and then put in a lowball bid for RES.
The significant point I made and the background to my concern was that RES would not release the financial consideration involved even when pressed and that concerned me then - still why would they not release the amount now / why be so vague to just say not being material to existing cash reserves. An auditor would suggest that a material event would be 10% equivalent of the cash balance or $1.5 million. They had no hesitation saying that the freehold was bought for $4 or $5m or whatever it was - just very rude of RES to effectively tell me it was none of my business and from that I was concerned.
On the face of it it looks like a really good deal for RES even if it was $5m.
The cynical side of me suggests that if the new resource acquired represents 30% of RES's new resource then Exxaro are placing a $12m undeveloped valuation on Res's existing resource against what we already consider to be a very low market cap of $62m - what do they know that we dont? if anything - maybe it is just an outstanding deal for RES, market seems to think so.
GLAll