I think you are missing the point here
@jackarooz!
From a Westgold viewpoint - it had already announced in the Sept. quarterly's that their intention was to spin off their Lithium assets. So essentially they have an asset for sale - I guess TON was the main suitor and in TON's case it's been granted a call option with an exercise price of $30m.
Looking at TON's cash, it doesn't have $30m to buy this and I suspect the directors don't want to tap shareholders again so quickly for another capital raise after the last one finished in December. So I guess if TON want the assets they need to stump up $30m and the only deal available is 357m new shares at 0.085c each.
Westgold don't need or want the shares to hold, so management will distribute the shares to it's shareholders almost like unfranked dividend by proxy as they have re-iterated on many of their statements and many posters have tried to explain to you.
The purpose for Westgold is to realise shareholder value for these assets that are considered non-core.
....And here is a little further info from the WGX Qtrly to give you a view of what you are buying:
30 September 2017 Quarterly Report
Page 12
Lithium Interests
Westgold holds significant interests in Lithium in the Eastern Goldfields. At Mount Marion, Westgold has leased a 30 hectare area of its Location 53 freehold lands to Reed Industrial Minerals Pty Ltd which contains a substantial extension of the Mount Marion Lithium Deposit. Westgold through its wholly owned subsidiaries is entitled to an annual rental of $3,000 per hectatre indexed to CPI, a $2 per tonne royalty of any ore mined and processed from the leased area and a royalty of 1.5% of gross sales revenue from the area.
In addition, Westgold through another wholly owned subsidiary has a $2/t royalty of ore mined and milled and a royalty of 1.5% of gross sales revenue from mining on 55 sq. kilometres of mining titles at Buldania near Norseman where it has given lithium exploration and exploitation rights to Liontown Resources Ltd. Liontown has announced the discovery of widespread lithium mineralisation on the tenure and continues with its exploration.
Westgold is currently evaluating the whole of its Lithium potential within its extensive freehold and leasehold lands in the Kalgoorlie –Norseman belts. As these interests currently have no dedicated exploration budget and are likely to have future revenues from royalty income, the company is considering a potential spin-off of lithium rights into a special purpose vehicle.
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