ASX ANNOUNCEMENT 10 APRIL 2008Cornerstone Investment and Share...

ASX ANNOUNCEMENT 10 APRIL 2008
Cornerstone Investment and Share Purchase Plan
Geodynamics is delighted to announce that The Sentient Group (Sentient) and
Sunsuper Pty Ltd have agreed to become joint cornerstone investors in
Geodynamics. It has been agreed that Sentient and Sunsuper will collectively
subscribe for 11.8% of the Company’s current issued share capital or 25 million fully
paid ordinary shares in Geodynamics at an issue price of $1.50 per share. In
addition, one attaching unquoted placement option exercisable at $2.00 per share for
every two Shares issued (i.e. 12.5 million options) and expiring 28 February 2009 will
be issued. An extraordinary general meeting of shareholders (EGM) is scheduled for
late May 2008 to consider and if thought appropriate, approve the placement. As
joint cornerstone investors, Sentient and Sunsuper bring tremendous strength to
Geodynamics as it enters the development phase for its flagship Cooper Basin
Project.
As part of the investment, Sentient and Sunsuper have the right to collectively
appoint a non-executive director to the Board of Geodynamics. Sentient and
Sunsuper are collectively required to maintain a 10% shareholding in Geodynamics
to maintain this Board representation.
Geodynamics is conscious of its standing policy that wherever practical, it will invite
all shareholders to participate in equity raisings. As such, Geodynamics
shareholders will be invited to participate in the share capital expansion of the
Company through a Share Purchase Plan (SPP) on exactly the same pricing terms
outlined above including a one for two free attaching listed option. The SPP
timetable and documentation will be issued in early May and will close in early June
and be subject to shareholder approval of the cornerstone investment by Sentient
and Sunsuper.
The funds raised from this placement and the subsequent SPP are designed to
strengthen Geodynamics balance sheet and place it in a strong financial position at
the end of 2008 when it is planned that the Innamincka Joint Venture will make an
investment decision on the construction of a 50 MW power station. Geodynamics will
need to have the capacity to meet its 70% share of the funding requirements for such
an investment program – a stronger balance sheet will make the funding
requirements at that time, in the Company’s view, achievable.
In addition, Geodynamics has a purchase option on a second Lightning drilling rig for
delivery by the end of the year and should the Innamincka Joint Venture proceed with
the exercise of that option, the funds raised will assist Geodynamics in meeting its
share of the purchase cost of the rig.
Geodynamics thanks shareholders for their continuing interest and looks forward to
their support at the forthcoming EGM.
About The Sentient Group
The Sentient Group manages over US$500 million in the development of metal,
mineral and energy projects across the globe through its Cayman-based closed-end
private equity funds.