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Torbreck

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27/04/21

15:00

Post #: 52753514
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Originally posted by That Fundamental Guy: ↑

@sam0408 I agree that at a high level, what needs to occur is relatively simple.

However, its once you get into the details that it becomes more complex. Ample Source International Limited (ASI) is registered in the British Virgin Islands ("BVI"). That is the company to which a liquidator is appointed, not Pure Metals. The people that can make decisions for Pure Metals are its directors. At least one of those resigned on 26 March 2021 - not sure who is left (my curiosity has not yet caused me to obtain an ASIC company search). For the liquidator to cause Pure Metals to do anything, it would need to take control of its board or appoint a liquidator to Pure Metals - but then that liquidator will control Pure Metals not the ASI liquidator. To take control of Pure Metals board, the liquidator of ASI would need to consider the legislation of BVI and well as Australian Corporations Act. It is all possible, but not necessarily simple. I haven't gone and researched this in detail because there are so many different options as to would could occur. I may decide to look into things further if there are proceedings that are contested within Australia.

At this stage, I think CAP is going to use Australian Courts to require Pure Metals to take the necessary steps and sign what is necessary to proceed with the JV reset (see ASX announcement of 29 March 2021). That should be straight forward if Pure Metals do not defend such legal action. I'm not sure of what motivation they would have for trying to defend such action. It could simply be that they are not wanting to be helpful as they were not successful in removing and appointing the directors they wanted. I suspect we'll get an update in the quarterly which is due in the coming days.

Hope that helps.

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Pure metals will get 90m shares in the transaction. The project is not proceeding the way it is at the moment, imo, it would be in their best interests to obtain the 90m shares because upon completion their shareholding will be worth a lot more...

CAP Price at posting: 5.8¢ Sentiment: Buy Disclosure: Held
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5 cents cheap, page-89

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The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

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Sunshine Metals kicks off copper gold drilling at Truncheon; Highway East targets

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