Ann: Kingston Resources to merge with WCB Resources, page-33

Good post and good research Angehuyn.

I see that when GBZ announced the merger on 16-2-17 their share price was .014, about the same as KSN price before the more recent merger announcement last week.

GBZ were offering 8 shares for one WCB implying a value of $0.112 per WCB share versus WCB market price of about $0.035.

KSN are offering just 4.5 KSN for each WCB implying a value of $0.063 versus WCB market price of about $0.045, so it seems a much better deal for KSN.

This time around KSN has loaned WCB funds for the heads of agreement costs which will be repaid to KSN if the deal doesn't proceed. As before I assume this will be repaid in WCB shares at $0.05 as WCB do not have any cash.

Sandfire (SFR) have $127m cash and are the largest shareholder in WCB and could easily have bought them out but maybe want to keep them a separate listed entity. SFR will own around 13% of the expanded KSN on completion. Who knows, maybe SFR will take a placement in KSN to raise further funds and to take their holding to 20%.

You ask if KSN are just funding WCB's gold project now. Well if the merger proceeds it will be KSN's gold project which we will be funding and no longer WCB's.