If GBG can't repay the $30 million in 12 months then Ansteel takes control of the KML. That is a given.
If Ansteel has more than 50% then they have the controlling vote on KML:
- Director appointments; - operations; - undertaking stage 2.
75% is only required for special resolutions which really relate to constitutional matters.
So in summary, if GBG do not repay the $30 million then GBG is along for the ride and if we can not meet our share of the funding requirement for stage 2 then there is no other choice, dilution of GBG.
So, a concern is that GBG either gets diluted or GBG's shareholder's get diluted. This is all dependant on the performance of operations and if we can get cash out if it to meet the commitment of April 2014.
GBG Price at posting:
16.5¢ Sentiment: None Disclosure: Held
