Ann: Nickel Activities Update , page-32

hey wal/amulet -

if the assets has value, why as a shareholder would you vote yes on a resolution that divests value without you receiving due compensation? that would not be rational.

the point i was making is that as a shareholder, you will be compensated for the assets being spin-out in the new IPO.

so if fair value if the nickel was say $5m, then the IPO would raise $5m plus whatever it needs to drill the tenements. This $5m will then be transferred to AVB shareholders.

Transfer could be as:
1. scrip in the new company (recent example is FGL-TWE or straits); or
2. AVB itself receiving cash and/or scrip in the new company (i.e. SXG - Radar Iron, HRR - MKO, TLM-Rico etc).

Shareholders will also typically be given a priority to subscribe for shares in the IPO i.e. take and increased stake in the divested assets and funding their development.

as, in my view, the nickel/palladium assets are not being reflected in the current avb share price then avb/shareholders receiving cash/scrip in a new entity will be a value add.

DYOR, IMO - best to make up your own mind on this.