directors selling to themselves?

I may be getting this wrong, if so, then please correct me.

But the announcement today says effectively that Guildford Coal have (or soon will) pay Resco Pty Ltd, $20 million dollars for EPC1674.

Craig Ransley is a director of Guildford Coal.

Craig Ransley is also the founder and chairman of Resco Pty Ltd.

So has Ransley simply taken $20 million of Guildford shareholder's money and moved it into his company, Resco Pty Ltd?

If Resco Pty Ltd's tenement EPC1674 is good, then I presume it should not be problematic for Guildford shareholders.

It is interesting however, that when companies say they are "pleased" to announce acquisitions, that they do not disclose whether the company directors either own (or have financial interests in) the projects being purchased (ie. by having shareholders pay for tenements that the directors already own through other private companies).

The other thing that comes to mind, is that directors presumably know what the potential JORC resource is for the project they are selling to you (ie. the project a director owns through his private entity), and so they "terrace" the payments from shareholders to their private company by taking a couple of million dollars of shareholder's money for each 10mt JORC resource.

Hey, in terms of director's getting very rich, I expect it is one successful modus operandi. Good luck to them, especially if it also generates shareholder wealth.

Gw