Hello My smiling band of BLR faithful, the sun is shining . ....

Hello

My smiling band of BLR faithful, the sun is shining . . .is it not?

I am not sure where some people got their information on how many $US or shares that BLR is going to pay STB, but the information released in ASX announcements tells a different story.

Please review the following and tell me if you think Mike Haynes hasn't done, what I think is a pretty savvy deal.

(1) BLR has paid STB US$500 000 to secure the sole option right agreement.

(2) On signing of the definitive agreement, payment of
US$1 Million and US$2.5 Million of BLR shares (5 day VWAP) BLR then has the " Option " to acquire STB's mineral interest namely the 51% of Hansen they don't own . . . . . . .
. . . . . ." any time up until August 6, 2013 ".

At point of definitive agreement we have paid STB US$1.5 Million cash.

If NZ Minerals win the quiet title claim over the 49% of Hansen, nothing changes in the money and shares deal which was already agreed some time ago ( US$1 Million in cash and US$1 Million in shares) This will be paid no matter who wins. However!!!

Now total cash paid to whoever is US$2.5 Million cash

If NZ minerals lose in court, they are going to owe BLR US$1 Million dollars of BLR shares which they received on commencement of the sale of the 49% of Hansen to BLR last year, as they did not have the right to sell it. They were issued 18 Million odd shares at the time which equated to US 5.40 cents per share. I am no legal eagle but I would think they would have to refund to BLR US$1 Million dollars worth of shares, shares and cash, or all cash.

So in a nutshell if NZ minerals win in court BLR pay total

US$2.5 Million in cash
US$3.5 Million in shares


But if STB win it is the above amounts less US1$ Million in cash or shares, or mix there of.

Plus whatever it costs to drill 6-12 holes in South Hansen to sure up the 1000 odd holes of data that had previously been drilled.

In essence no other monies or shares are due until Mike decides to go mining, and is actually producing at which stage I would think that the share price might be a tad better.

Based on a 5 day VWAP of only 8 cents . . . . .BLR will issue only 31 565 000 new shares ( US$0.99 exchange rate )

"not" . . . 165 000 000 shares as somebody suggested.

As the " Quite title " court case has yet to be settled there will be no further share issues under the standing agreements, until that time. But Mike can start drilling on the other 51%, . . . . .absolutely . . . . .rather clever planning I think.

BLR Ski Club . . . . will meet at this years AGM


SwissB