Ann: Rights Issue, page-30

From the takeovers panel guidance note 17.

• In considering whether a rights issue gives rise to unacceptable circumstances, the Panel looks at the effect of the rights issue against the principles in s602. In doing so, it considers the following factors:
  1. the company's situation
     • what methods of raising funds are available to the company
     • whether the company has explored other capital-raising alternatives

From a bit later.....

• However, need for funds is not a safe harbour. Notwithstanding a company's need for funds, the Panel may still declare the circumstances unacceptable.

There was an alternative for funding, those that stand to gain here were the ones that stopped that proposal. Even though there were free options, they still had a strike price of $1.25.

I have a suspicion this is not all over unless shareholders roll over. Perhaps OZL who need another project could have been interested if they had all the facts, and at a price of around $300m. The way this has been organised MAY stop that from occuring, but by the collusion of the major shareholders, with or without the boards approval, certainly already exceeds 20% without a T/O being made, just a convoluted way of getting more cheap shares to gain enough control, like 40% without having to make a T/O bid, then sell themselves all the copper at a 5% discount and slowly changing all but 2 of the board members.

I agree it might be to late now, because shareholders sat on their collective a$$es and did nothing over the last 2 months, so they have shown an aptitude to do nothing give up.
Trust me Hoot's and Jantimot I've organised things in the past that I was told I had a snowball's chance in hell of achieving, including getting a govt to spend $25m when there was no intention of doing so, but it takes a lot of hard work and usually a lot of time.

The real problem here is the lack of hard information for anyone to make worthwhile decisions with, over the last few years. The 3 largest shareholders have access to all the information the small holders don't have, so they and the board are the only ones that can have a stab at the true value of CDU.

At least we can now assume that $83m is all that is needed to get to production, but how many tonnes of copper are in those stockpiles?? They know, no-one else does.

They don't want the shares to trade now because some-one might buy a big slice cheaply and ask to look at the data room, that is clearly to the interest of smaller shareholders and to the detriment of the existing 3 largest holders. hence no trading for 4 weeks

Interesting dates in the document Monday the 12th of October and Tuesday the 14th of October. Is the 13th unlucky so they just left that day out?

I wonder if WM is off talking to execs of other mining companies, that could put a cat amongst the pidgeons!! If so he might just get the last say yet as the Chinese have just valued the shares at 60c each.