Ann: ANS: Proposed $100m Placement & Strategic Investment in Sund, page-61

Reading more of the detail of this deal, something is not quite adding up.
Little doubt this was the last throw of the dice for SDL and they were desperate to get an investor so they can get their extension - so all of sudden at last minute we have this private chinese company step up and not only want to get control of ANS which is another problem child with a huge capital requirement, but also use that vehicle to control SDL
The details of intended use of funds reads like a wish list of things they hope they can achieve.
- $58m - proposed SDL transaction ($50m to go to noteholders)
- $1.5m transactions costs
- $2.5m to recruit additional personnel
- $7.5m to explore the proposed development of Oakajee with the WA Gov
- $7.5m to maintain & expand ANS portfolio of IO tenements
- $7.5m to identify & pursue other WA projects (acquire, earn into other tenements or infrastructure solutions )
- $7.5, for feasibility / engineering studies, approvals, advance discussions etc in relation to Oakajee!!
- $8m for general working capital
(All in all, after noteholders take theirs, not a lot of capital to progrese these projects very far..........)
"AustSino may (but has no present intention to) use some of the balance of the funds ($42M) raised from the Proposed WAPRC Transaction on the development of the Sundance Project."
And :-
"If the Proposed Sundance Transaction does not complete, the $58M which was proposed to be allocated for that transaction, will be retained for general working capital, for the purposes of exploring the development of the Oakajee Project and for the purpose of identifying and pursuing Other Western Australian Projects."
So it appears they have committed $100m to these projects with the intention of having a look and see what we can come up with
Reading their intention won't fire up the market I wouldn't think. The proposal basically looks like they are starting again trying to get Oakajee up and running and while they were at it thought they'd buy a controlling interest in SDL, throw them $8m working capital and hope!!
Although, little doubt, the "while they were at it" part was to try and ensure SDL gain their extension, hmmm
It is also telling that note holders will be  retaining an interest but more importantly getting some of their long locked up capital back and I think happy to take the discount!
I know some will say it is the Chinese firming up their position with these great IO projects, however for the level of capital required I would have expected much bigger fish to come to the table. (Doubt we will learn much about this private Chinese company)
Perhaps there are others lurking and all will be revealed in due course. Difficult to see anyone putting this deal together without a much greater thought for the end game!
I know it is $100m (a sizeable investment) and ASIC will be determined to ensure they have the funds before letting these Companies trade but can't help feeling there is something missing...................
At least this deal provides some hope for 2 Companies so will be watching with intrigue where this goes.