Not all holders of Bills Eye accepted the EMR offer. EMR cannot oppress minority shareholders by raising heaps of dough, the BE shareholders not being able to participate and then have EMR taking up the shortfall, such as to effectively crush the minority into a super minority.
For example, EMR can’t seek to cause BE to raise $50M and then turn the 40% minority into 8% and then control the company. I have bother you check the number of shares BE has, I think it was 400M shares on issue, but I hope you take my point.
Bluecap lent money to BE via the JV. The interest rate was 15% according to para 7.1(b) of the Xingao Bidder’s document. They had security over the money comprising pledges I think it was. EMR has said to Bluecap, here’s your money and remove your security. This means BE isn’t paying interest or in the JV anymore. So the gold produced under the JV goes straight to BE.
All that EMR has done is tidy up the JV arrangement and simplify BE’s affairs and costs.
The end game is to drill WA 100,000 metres over the next year and prove up the BE ground!
The court cases are slowly working their way through the WA legal system. In time, they will be either settled or decided upon. No rush said the old bull…
EMR Price at posting:
$1.12 Sentiment: Buy Disclosure: Held
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