It looks like KAS dodged a bullet on this one - no thanks to our Lion and Pala aligned directors who were out to saddle us with AMR and their dud Ban Phuc mine, which has now been disposed of for the princely sum of US$1... from The Australian Margin Call column of 24th May.
Rock the Kasbah
Now, to the west, where sometimes money isn’t worth the paper it’s printed on.
The protracted saga of Moroccan tin play Kasbah Resources has had another interesting postscript, with the John Gooding-chaired company that once planned to take over the group now agreeing to sell its only asset for one lonely dollar.
It’s less than two years since Asian Mineral Resources launched its all-share offer for Kasbah.
At the time Kasbah shareholders voted 92 per cent in favour of merging Kasbah and its Achmmach tin project in Morocco with AMR and its Ban Phuc nickel mine in Vietnam.
The deal would have gone through were it not for a plucky band of rebel shareholders, headed by Melbourne financial advisor David Willis.
Those rebels unearthed a “fundamental error” in the BDO-prepared independent expert’s report that ultimately forced the deal to be scuttled.
While Kasbah shares haven’t exactly shot the lights out since it parted ways with AMR, the latest announcement from AMR should have Kasbah shareholders feeling they dodged a bullet.
AMR will now offload Ban Phuc (along with more than $US3.5m of liabilities) to Australian Stephen Ennor — AMR’s longstanding exec in Vietnam — for $US1.
Kasbah, meanwhile, is still in a legal fight with BDO over that dodgy expert’s report.
What a deal.
Chapeau again to David Willis and his co-rebels!
KAS Price at posting:
1.7¢ Sentiment: Hold Disclosure: Held
