Spells out everything very well - now we know why it's taken so long, it is a complicated one. Agree its not a good day, but bad days are usually followed by good ones
ASX Announcement – MKY Corporation
5 Septmember 2008
Update on Proposed Bauxite Transaction
MKY Corporation Ltd. (ASX Code: MKY) wishes to update the market on progress of the proposed acquisition of numerous bauxite projects in Cape York, North Queensland.
The proposed transaction is subject to ASX approval and is proposed to be by way of an acquisition of the company which holds the current granted leases and applications,
Delminco Pty Ltd (Delminco). Delminco is an unlisted mineral exploration company which holds bauxite projects and uranium projects in North Queensland. Australian Energy Company Limited (AEC) is the majority owner of Delminco and MKY’s Chairman, Allan Blood is also the Chairman of AEC. Because of this conflict of interest independent valuations are being obtained to ensure the final agreed value is in the best interests of shareholders. Additionally an independent accountant will be engaged to review the purchase price (in script) and
Terms and Conditions of the proposed transaction to ensure that they are fair and reasonable. Finally the transaction will require the approval of MKY shareholders at the
next Annual General Meeting.
It has been agreed with AEC that the consideration for the acquisition will comprise the issue of MKY shares in exchange for Delminco’s shares. It is currently proposed that these MKY shares will be subject to an escrow period of 12 months.
Andrew White and Associates have been engaged to value the exploration projects owned by Delminco. Dr Andrew White (BSc(Hons) Geology, PhD, FAIG, FSEG,GAICD), is principal consultant of Andrew White and Associates, Geological and
Management Consultants, and has more than 45 years experience in exploration, project evaluation and management for a range of metalliferous and non metallic minerals. He has extensive experience in Australia, Indonesia and Brazil specific to bauxite, including
exploration, resource assessment, feasibility study, project development and due diligence reviews of bauxite deposits and production operations. Dr White has been
closely associated with exploration, project development and mining on Cape York for over 35 years.
Andrew’s report detailing the valuation of the bauxite projects has now been completed.
There remains one outstanding tenement valuation; upon receipt of which the consideration terms can be finalised and agreed. As mentioned above, the transaction
will then be subject to the approval of the ASX, AEC board and MKY shareholders.
The next meeting of the AEC board is on the 17th September. We aim to have the commercial terms of the proposed transaction agreed on this date.
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