Upon further investigation into the corporation articles of "Trans metal Fund LP", it is now beyond a doubt that this entity is merely a proxy vehicle for a large Chinese buyer, who doesn't want to show their hand, for fear of causing a bidding war and/or causing the acquisition price to increase.
Let's delve further:
1. Company report on Trans Metal Fund LP. If you scroll to the bottom of the report, you will note the "General Partners" section which states that the partner is "Trans Metal Management, INC".
LP in the name "Trans Metal Fund LP" means Limited Partnership.
The sole partner is "Trans Metal Management, Inc" - therefore, you can say that Trans Metal Fund LP is a subsidiary of "Trans Metal Management, Inc".
2. Lets investigate "Trans Metal Management, Inc" further, below are the incorporation articles:
Please note Ontario Inc was the initial name incorporated and it was later changed to Trans Metal Management, Inc.
The new name of "Lei Huang" appears. This has previously not been disclosed to the market nor mentioned in the ASX announcement. Lei Huang is another lawyer/consultant from Fasken like Michael Boehm.
Common sense should of course prevail and these lawyers are not acquiring a project for their own interest but rather representing a top tier client who wishes to remain anonymous by utilising multiple vehicles during the bidding process.
Michael Boehm and Lei Huang have primarily undertaken legal and consultative work for Zijin Mining ($68bn market cap) and Zhaojin Mining ($4.8bn market cap). My educated guess is that one of these companies are the bidders behind the Trans Metal Fund LP offer.
Both are well-funded and cash rich companies that would have no issues meeting their financial obligations should the sale close.
It is mind boggling to me how the company can sit on $32m mcap with an offer of AU$53m cash consideration (nearly double) upfront payment and a further AU$31m cash payment due on issue of the underground mining permit (due this quarter). That is $84m and nearly 3x the current market cap. Also a further AU$39m on re-start of mining operations.
This is of course only the first bid of twelve potential bidders but from all indications, it is a serious bid and the bidder has the financial capacity to meet their obligations.
(20min delay)