"Under the terms of the strategic alliance, ITOCHU, through its wholly owned subsidiary NURA 3 Pty Ltd ("ITOCHU"), will have the right to subscribe for a 14.9% shareholding in Alliance or ACE under a Deferred Share Rights Deed (“Deed”). In addition, ITOCHU will have an option (“Option”) to subscribe for a further 25.1% of equity in ACE. The Deferred Share Rights (“DSRs”) and Option may be converted under certain circumstances, including completion of the current litigation in relation to the Four Mile Project
Going over the initial announcement it appears that the "certain circumstances to convert the DSR's and option" would be if Alliance gets the return of the entire asset and with that Itochu can take an interest in 40% of ACE.imo
I'd say it all depends on whether AGS gets the entire asset awarded to them and that is a long way down the track with the Courts to decide.
The actual determining of the price for ACE and how they allow it (strip off ACE from Alliance??) will be of interest when this announcement with the details is released!
Also this "the funds raised through this arrangement would be sufficient to fully fund the construction of a standalone in-situ recovery and uranium processing plant at the Four Mile Project (if that were the best option)"
If the standalone plant is valued upto 200m-250m? then Itochu gets 40% of ACE for a steal.imo
How is ACE going to be valued(by AGS share-price alone)?
I know I'm jumping the gun here but the announcement with the details can't come quick enough for me.
The wording from the last announcement or my interpretation maybe off the mark.! imo
Good Luck All
Md
AGS Price at posting:
18.0¢ Sentiment: None Disclosure: Held
