Quasar stumble (imo)
There’s been a lot of talk on here by the Quasar team telling us how smart they are, well I think they’ve shown a chink in their armour and stumbled very badly.
The pathetic offer of $57.6 mill or 14 cents per share for AGS’s share of Four Mile was imo a massive blunder,
What it has done is proven to the Judge that Quasar not only wants to acquire AGS’s share of Four Mile but want it at a steal imo.
Imo this offer from Quasar reinforces AGS’s argument that Quasar has been starving them of cash by not selling their Uranium , resulting in AGS not being able to not to contribute to the Four Mile Uranium Project 2015 and reducing AGS’S share of Four Mile from 25 to 15 % by Dec 2015.
Quasar other bungle was to make an offer so low, knowing imo AGS would never accept it.
The Fact that Quasar even made an offer, tells me imo that are not confident of winning this case.
Quasar has also set the floor price for any future offers that AGS will receive imo once they are granted sales rights by the Judge.
Quasars offer of $57.6 mill was in effect an offer of $20mill for AGS’s inventory plus $37.6mill for all the tons of Uranium that are still in the ground.
AGS’s current value of inventory has been recently valued on HC approx. $37mill , an inventory value increase since Quasars offer of $17mill , this in effect would revalue Quasars offer from $57.6mill to $74.6mill or 19 cents per share, keep in mind this 19cents per share is based on a ridiculously low offer from Quasar that was rejected outright by AGS, however it does give us an idea of what value serious future offers will be and also shows, what most here already know, that the current Share Price of 8 cents is only a fraction of its true value.
Quasars blunder also helped AGS imo fill its “Rights Issue shortfall”, as the offer from Quasar was 14 cents per share, with the Rights issue being at 8 cents.
20 November 2014
“FOUR MILE URANIUM PROJECT ACE NOT CONTRIBUTING TO 2015 PROGRAM AND BUDGET”
http://www.allianceresources.com.au...rMileACENotContributingTo2015ProgramAndBudget
The Board of Directors of Alliance Resources Limited (“Alliance”) has, reluctantly, resolved that its wholly owned subsidiary Alliance Craton Explorer Pty Ltd (“ACE”) should elect not to contribute to the Four Mile Uranium Project 2015 Program and Budget for the period 1 December 2014 to 31 December 2015 (2015 Program and Budget).
This decision has been forced upon it due to Quasar Resources Pty Ltd's (“Quasar”) refusal to sell ACE's share of product from Four Mile (thereby depriving ACE of funds that it would have used to defray those expenses). The impacts of this decision are:
§ ACE will have no outgoings associated with Four Mile after December 2014 until 1 January 2016 (but may recommence contributions as at 1 January 2016); and
§ ACE's interest in the Four Mile Mine Development Area will reduce from 25% to approximately 15% by 31 December 2015 (based on the 2015 Program and Budget forecast expenditure).
23 February 2015
“AGS OFFER TO PURCHASE ACE’S INTEREST IN FOUR MILE PROJECT REJECTED”
http://www.allianceresources.com.au...OfferToPurchaseACEsInterestInFourMileRejected
Alliance Resources Ltd (Alliance) advises that it has received an offer from Quasar Resources Pty Ltd (Quasar) to purchase all of Alliance Craton Explorer Pty Ltd’s (ACE) interest in the Four Mile Uranium Project (Project), including
ACE’s share of uranium oxide concentrates already mined, for a consideration of $57.6 million.
The Board of Directors of Alliance has engaged Deloitte Corporate Finance Pty Limited (Deloitte) to advise it. The Board, in conjunction with its advisers, has reviewed Quasar’s offer and has now rejected it. In discussions between Deloitte and Quasar, Quasar indicated that it is not prepared to increase its offer to a level the Board would consider recommending to Alliance shareholders. Based on both internal and external valuations of the Project, the Board considers the offer to be significantly below fair value.
ACE’s share of uranium oxide concentrates mined to 31 December 2014 (414,684 lbs) has a market value of approximately $20 million1 , based on a spot price of US$38.38/lb and 1 AUD = 0.78 USD. ACE remains open to selling its interest in the Project should an appropriate offer be made by Quasar (or others). Any sale would be subject to shareholder approval. Steve Johnston Managing Director
