Ann: Binding Cash Offer Received for West New Bri, page-27

re: Ann: Binding Cash Offer Received for West... hmmmm interesting question.

to be honest, i only have a small parcel in COY so dont follow it as regularly as other stocks i hold.

per the announcement on the 8th November

"Coppermoly Limited (ASX: COY), “the Company” has reached an agreement to enter into exclusive negotiations with Barrick (PNG Exploration) Ltd (“Barrick”) regarding a proposed transaction in relation to the Company potentially acquiring Barrick’s interest in the West New Britain Project tenements (EL1077 Simuku, EL1043 Nakru and EL1445 Talelumas) in Papua New Guinea"

from the announcements made this hasnt been finalised so may be a reason this was not brought to shareholders (sorry totally slipped my mind). that being said though, i would have expected a mention regarding barrick in the last announcement if they were still in the works, but maybe that is where expectiations and legal requirements differ.

this is from the announcement dated 5 december...

"The Board of Directors of Coppermoly believe that realising a cash value for the West New Britain Project tenements will position the Company for a sustainable future and enable it to capitalise upon its existing expertise, capabilities and facilities in the same proven, highly mineralised region."

sorry, i dont have the answer.

1) has the tennements been sold to COY from Barrick (IMO no as that would be market sensitive).

2) terms of the 'exclusitivity agreement' does barrick get cash up front or a 'cut' of what COY can negotiate.

3) COY are very willing to sell their West New Britain project so rejecting the $13M might be them holding out for more but with the poor cash balance, i would rather them sell now and realise cash as opposed to further dilution of us 'minor' shareholders. it seems the main benefactors of the refusal of the 13M would be the board who hold a large parcel of shares and who are able to issue themselves share options, and selectively choose where to raise capital (and thus issue shares at a discount selectively)