Ann: Sale Of The Four Mile Uranium Project, page-139

Some thoughts and opinion of the sale Ann. I apologise if it is negative and or has been covered in other posts. I dont read everything in these threads.


1. As previously announced (30 June 2014) the terms of the settlement with Quasar Resources Pty Ltd and Heathgate Resources Pty Ltd are confidential. Neither Alliance nor Alliance Craton Explorer Pty Ltd (ACE) can divulge those terms. Similarly, the terms of the agreement with Quasar concerning the Project are confidential.

2. Also as previously announced (17 June 2014), if a sale of the Project can be achieved it will be subject to shareholder approval. At that time details of the prospective purchaser and the sale consideration will be disclosed and an independent valuation will be available to assist shareholders to evaluate the fairness of the sale price and terms. The Board hopes it will be in a position to put such a resolution to shareholders at the annual general meeting scheduled for 26 November 2014.

3. No final decision as to how the proceeds of sale will be disbursed has been made. This will be considered by the Board once the quantum and nature of the consideration, which may be cash or scrip or a combination of the two, is known.

4. Itochu Corporation is yet to indicate whether it will exercise its rights under the deferred share rights deed or whether it will participate in the sale process. As announced on 17 June 2014, its consent to the sale will be required.

5. The Board remains enthusiastic about the Project but disagrees with Quasar's development plans and the timing for development given current uranium prices. The Board would also like to see further exploration carried out but has no control over the work program or budget. Initial uranium sales are expected to occur in late August (see ASX announcements dated 31 January and 9 February 2014).

5. Most importantly, the Board will only recommend a sale if an acceptable value is achieved and it is in the best interests of all shareholders.

What proportion of shareholders are required to pass the sale (50%?), who will be allowed to vote, IG., other directors, Itochu if they take up their 14% option (which can be in AGS or Ace shares according to my reading)? Will the voters know how the proceeds of the sale will be disbursed at the time of the vote?
Interestingly Itochu is a public company. I cant see why they would not take up there option to buy shares in Ace or Ags even if it is just for an investment short- medium term.
I suspect Itochu are front runners for buying Ace, I suspect the directors are not permitted to say or do anything that would improve the share price while the valuation process is active.
May be the lower the price goes the more attractive the offer will seem, also the current buyers on market might be looking for a quick buck so vote accordingly.
So my guess is Itochu offering around 50cents possibly some of it in script (presumably that is possible/practical?) I think the board may have to offer a disbursement to shareholders to sway the vote, say a proportion of the cash, 30 cents?

I think that IG and the board have lost the plot a bit, there integrity is suspect in my opinion, all this confidentiality, the litigation debacle, and now this strategic alliance which looks a bit dodgy to me. Time will tell, it should be interesting and I think shareholders will have to get considerably more than present share price levels. I dont know if I will be a holder or not, could be more twists and turns yet.