Below is an extract from the 1/4'ly about Vales purcahse options of the Belvedere project.
This is the first I have heard of Vale's "second option". Maybe I am misisng somethign but it reads to me as though it is the same as the first option except it runs until December 2012??
So essentially Vale's option to acquire at "fair market price" runs from now until Dec 2012!! Are we allowed to sell our stake in the project to any interested party during this period?? Surely we can during the "second option"????
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Vale Purchase Options
The First Option Period under the Joint Venture Agreement commenced on 4 December 2009 (for a six month period) during which Vale has the option to acquire the Companys interest in the Project at an independently determined fair market value. The Company has not received any indication as to whether Vale will exercise the First Option at this stage.
In the event that Vale does not exercise the first option during the First Option Period or does not do so for the balance of the Belvedere Hard Coking Coal Project it does not already own, then Vale has a second option, exercisable during the period 4 June 2010 to 3 December 2012 (inclusive) (Second Option Period). During the Second Option Period Vale may exercise the second option, which is exercisable in respect of a 24.5% interest in the Project. If Vale exercises the second option, and in the event that the Company has not already sold its interest in the Project to Vale pursuant to the first option, the Company may sell its remaining interest in the Belvedere Hard Coking Coal Project to Vale at an independently determined fair market value.
AQA Price at posting:
$10.17 Sentiment: LT Buy Disclosure: Held