dilution of shares

Some holdings (assets that were making a massive loss) were sold, in return for cash, to be injected (as far as was stated) in the BFS. The aim of the BFS is to get the next asset online (WIM 150) which already has an upgrade in the bag. The WIM 150 is a massive project with a mine life of 20+ years that is of great value and in high demand. It wasn't too long ago that Astron Ltd was desperately trying to get their hands on it but their appeals were over turned in court.

OZC have just recently purchased the right to earn 20% interest in the WIM 150 that was owned by Auspac. This sale to OZC coincided with the announcement of the lapse of date to acquire the other 80% interest in the WIM 150 from AZC. A company of OZC’s stature (my opinion) would not just simply overlook a date worth this amount of money but I believe it made it easier for OZC to acquire the 20% interest of the WIM 150 from APG by covering up the fact that AZC still owned an 80% interest.

Of course selling off the 35% stake in Murray Zircon is an asset lost and will possibly affect the value of the company /shares but this is only a perceived value at least until AZC resume trading. As far as the dilution of AZC shares no other party has acquired shares in AZC so I don’t believe that there is any dilution. Shares in an asset were sold for cash!

OZC have just bailed AZC out big time so I can only assume that they are on good terms. It wouldn't surprise me if and when the BFS gets the green light OZC will step in and offer AZC a deal. OZC want the WIM 150 they make no secret of this and hopefully AZC will be competent enough to cut a slice into something worthwhile!