gold spin off company, page-8

Unfortunately the picture is not very clear, as there is no information about whether the spinning off of the gold assets was done in preparation for the deal with LCY or as a consequence of that same deal.

However, from the statements so far made public the impression created seems to be that the deal between LCY and HAW is to be implemented next month while the planned spin off the gold assets is to be implemented during March, with the proviso that ALL shareholders registered at that time are to become entitled to participate in the free allocation of shares in the newly created entity.

Therefore, in principle at least, LCY should be entitle to 60% of the equity in HAWGOLD, which indicates, imo, that LCY may also be interested in the development of such asset, and asset whose purchase price must have been included in the 5m sum.

I say this because if that were not the case, one would have to accept the idea that HAW would have been willing to give 60% equity in HAWGOLD for nothing, which is a very unlikely proposition.