Genorah 324m -> zjin. (as shown held by glen eagles)
Zjin 202m
Total Z(G) 526/896 x 0.74 = 43% Approx (needs to be 51% to get project finance)
They need the ASX minorities in order to get the finance.
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So they need 51% = Shares/896 x 0.74
So shares = 617 FPS.
And they only have 526 at most from G and their placement.
ie they need another 617-526=91
Either they buy on market, or take us over.
But how many other projects do Zijin share the bed with juniors?
Why would they want to share profits with us?
Genorah are getting a free ride at the project level.
And they remove them selves from the picture at a NKP level.
They cant just give G a free carry at the project level, without giving NKP shareholders a free carry as well.
The Project belongs to both NKP (74%) and G (26%)
If you and your sister had joint ownership of a car, and i borrowed it for a fee. The fee is payable pro-rata to both you and your sister.
So how under the convoluted owner ship of Z now being a NKP major shareholder, does Z propose to free carry the ASX holders.
I've made the point before, but the simplest JV is done at a project level.
There is no reason for Z to be on our registry, they could have said, NKP reduce to 23% free carry, Genorah 26%, and Z 51% Project.
Then they would have been in control. Without the inside move.
So why move inside, when outside is easier?
Answer ?
They dont want 51%. They want 74%.
NKP Price at posting:
7.2¢ Sentiment: Buy Disclosure: Held
