The use of the contractor was part of the deal to buy Challenger in the first place.
They paid a million up front as part of a joint venture with PYBAR's subsidiary Diversified Minerals. They then paid 9 million to buy out the joint venture partner Diversified Minerals. Part of the deal appears to be that Diversified's parent company, PYBAR, would be the underground mining contractor.
The mining contractor fronted up the case to buy Challenger, then sold out their half to WPG but stayed on as the contractor.
Shotgun marriage that didn't work out.
See announcements.
22 February 2016:
WPG Resources Ltd (ASX: WPG, WPGO)is pleased to announce that the share purchase agreement (SPA) to acquire the Challenger gold mine and South Australian exploration assets from Kingsgate Consolidated Limited (KCN) has been executed by KCN and the Challenger Joint Venture (CJV).
The 50/50 CJV was established following the exercise of the option to acquire
Challenger (announced on 11 December 2015) between related parties of WPG and Diversified Minerals Pty Ltd (DMPL). DMPL is an entity within the PYBAR Group (PYBAR), one of Australia’s pre-eminent and extremely successful underground mining contractors. The CJV has appointed WPG as manager and PYBAR Mining Services as mining contractor for the Challenger project.
29 August 2016
WPG Resources Ltd (ASX:WPG, WPGO) is pleased to announce that it has completed the acquisition of its former joint venture partner’s 50% interest in the Challenger mining and exploration joint ventures (CJVs) in South Australia, to increase its interest to 100% of the Challenger gold mine and approximately 34% of the separate West Gawler Craton gold exploration joint venture. The purchase price was $9 million and the issue of 25 million WPG options to Diversified Minerals Pty Ltd (DMPL), WPG’s former joint venture partner in the two CJVs.
The unlisted vendor options will expire on 30 September 2018 and the exercise price is $0.11 per
option exercised. The issue of vendor options is subject to shareholder approval, and a general meeting of shareholders will be convened to seek this approval. To fund the acquisition of 50% of Challenger and to provide finance for developing Tarcoola and for general working capital purposes, WPG has comp
leted a $13.7 million capital raising comprising a $7.35 million Placement and a $6.32 million
underwritten 1 for 6 pro rata non-renounceable Entitlement Offer to eligible shareholders. In addition, a further $0.7 million has been raised through the exercise of listed options.
WPG Price at posting:
1.9¢ Sentiment: Hold Disclosure: Held
