deal or no deal ?, page-11

Mrs Wang seems the real deal

1 - new binding term sheet has been agreed and executed
2 - she holds a 19.81% stake in PLV
3 - is a non-executive director
4 - provided interest free funding for PLV
5 - she will assist in getting the environmental bond

So we have until the 30th of September 2012 to acquire the Cockatoo Island Project from the current vendors

CK


Proposed Joint Venture with Wise Energy Group Company Limited (“WEG”)

Pluton announces that a binding term sheet has been agreed and executed for a proposed 50/50 unincorporated joint venture with WEG over the mining operations on Cockatoo Island.

WEG is a trading company registered in Hong Kong. WEG currently holds a 19.81% equity interest in Pluton which was acquired in an off market transfer from Timeone Holdings Limited. WEG is also controlled by one of the Company’s non-executive directors, Ms Chenxi Wang.

Pursuant to the term sheet, WEG has provided a $3 million interest free loan to Pluton on an unsecured basis, which will be repaid using 100% of the cash flow from the shipment of iron ore produced from the Cockatoo Island Project once the purchase is completed (unless Pluton does not acquire the Cockatoo Island Project from the current vendors by 30 September 2012, in which case the loan will be repayable within 30 days).

WEG will also assist Pluton in securing funding of a $20 million bank guarantee required for the statutory environmental bonds for the Cockatoo Island Project. These bonds are required under the asset sale agreement with the current Cockatoo Island Project vendors. In addition, WEG is arranging working capital for Pluton and the proposed joint venture by way of loans from Chinese end-users against presales of Cockatoo iron ore. To date Pluton has received US$5.5m in funding via these loans from the
commitment of two shipments of ore.