Ann: Peak to be acquired by Shenghe following Entitlement Offer, page-183

lets just hypothetical say this falls over and the scheme fails an shenghe doesn't acquire peak or offers a higher price

scenario 1 : shenghe continues to co develop the project with peak - they are doing this if peak sells to them - so chinese policy risk is questionable.

scenario 2: peak loses its license to mine the project - based on timelines of development not abided to the license agreements.

A; Peak argues in courts what it's done so far including the payments for the compensation that this raise is of some part towards (not excluding teaside sale )- is that enough to validate Peak has acted in good faith - peak did have loan finance originally in the works.... but shenghe and chinese have acted in poor faith as to delays and policy changes .

and

B; another chinese firm gains the licence - peak argues in court as per above - shenghe looses its investment - does that matter probably not as chinese government would probably pay them compensation as end game was control.

outcome - would end up being A plus B and fact it was chinese policy risk that was the issue i think it might get difficult for the tanzania government to justify taking away peaks license when looking at the reasons and Peaks commitment to date. If shenghe was ok to continue a binding offtake agreement with chinese government policy changes - it seems the policy risk has been overstated.

scenario 3. peak votes are not enough for scheme to pass - 70% only approve - this means 70% are ok to sell at 36 cents - so a takeover not a scheme is implemented with letters to shareholders offering a slightly higher price.

Scenario 4. Gina Rinehart puts capital towards to project - locking in funding?

any other opinions to spitball at?