Ann: Trading Halt, page-36

A change in control suggestsin excess of 50% of shares (indicating a majority ownership) or a material transaction (e.g. merger, that substantially alters the company structure).

Due to the criminallylow market cap, existing gold resource and potential in the lake, a takeoveroffer of some sort is not unexpected.

That being said, I wouldbe very, very disappointed in management and any offeror who makes an offerbased on the share price. Due to the existing resource of more than 500,000 ounces, any takeover or merger should be priced in terms of $/ounce.

It would not be unreasonable to expect anything from $80 - $150 per ounce in my opinion(depending on whether inferred, indicated etc).

This values KWR at between circa $40m and $75m. This is roughly a valuation of $0.12 - $0.20. However, this valuation allocates zero to Menzies at depth and zero to any prospects at Lake Goongarrie.

I intend to be very vocalabout the above, and will speak to management and other shareholders if necessary. Anything sub $0.12 is embarrassing.

We have cash in the bank,and have entered profit sharing agreement for part of Menzies. There is no need for the company to sell at the current depressed prices.

I would suggest that allshareholders, including those who were lucky enough to get in cheap (@discostu89)give the above significant thought.

I was going to hold mytongue about any potential mergers because I am not across other potential suitorsin the way the likes of@robbo24 and @perdant are and because it really is a completeguessing game.

However, it has justbeen released that it is a merger with BTR. Although not a takeover, KWR's reserve valuation still stands.

Appreciate the threadlink throug@DonaldFrump.

Currently reviewing but there's a lot to consider hereteam. At first glance, I consider it a terrible deal for KWR though.

@Fredwah, I look forwardto your updated calculations if you would be so kind. However, you look to have almost nailed it. Scarily so.