re: Ann: TOV: Minemakers Limited - Declarati... Well a victory...

re: Ann: TOV: Minemakers Limited - Declarati... Well a victory of sorts for MAK but one that could be pyrrhic in nature as the outcomes will in reality probably favour UCL.

There are two main aspects to the decision.

1. UCL has to issue a replacement bidder statement and may not issue the original one. Given that UCL has already undertaken not to issue the original one pending the panel decision this is not a gain for MAK.

2. There are some changes ordered. The two main ones are:
I. That UCL has to provide more detail on their funding arrangements both on the party providing the funding and on how they will fund any shortfall for acceptances that might come in over the value of the funding. I think this is actually a win for UCL. The funding is from the Omani company Mawarid, one of their major shareholders. It will give UCL additional opportunity to emphasise the strength they have backing them and thus potentially a PR win. Further the Omanis have already said they will also fund any shortfall if necessary so even if there is a grey area that needs to be clarified there it is further opportunity for UCL to promote a clear strength they have over MAK.

Ii. they have to include more detail about comparitive VWAPs. Originally UCL only compared the vwaps on the day prior to the offer. MAK have got a ruling that UCL have to give more being day before, 1 month, 3 months and 6 months. However the problem for MAK here is that the panel has ordered that this must be based on the date of printing the REPLACEMENT bidders statement. If that takes a couple more weeks, or even longer, then MAK will have been comfortably under 20 cents for basically 2 months which will play havoc with their VWAPs compared with what they might have been if the order was based on when UCL first made their offer. UCLs price has dipped but it would take very little to move it up prior to the printing of the replacement statement to make sure the price of the offer looks good given that MAK is still heavily under water and threatening to test 13 cents.

Basically all MAK have achieved is to gain a bit of time.