lcy taking over haw, page-44

Ok after the deal gets approved buy HAW shareholders at an EGM in Feb, LCY will own 60% of HAW and majority board representation of HAW. HAW will only own Mount Bevan and will own 100% of it. So as LCY holders we basically are keeping our 60% of Mount Bevan and gaining control of the project. For this we have to pay $5 million to HAW, which I suppose will be spun with their other projects, i.e. this $5 mil probably won't be waiting for us when we get our 60% of HAW. The in-species distribution means that you will be issued HAW shares and keep your LCY shares. LCY will no longer have any interest in Mt Bevan but may do other deals in the future like MAK etc. LCY will still be half owned by NMDC.

For this we pay $5 mill, which is a bit, but considering as other poster quickly pointed out we still needed to spend ~$2 mill under the JV, it is not so bad. It also means streamlined frictionless board and control of Mount Bevan. Importantly it allows NMDC (which will hold 30% of HAW) to increase their holding under FIRB guidelines to the maximum 50%. This is very important IMO as it allows them to participate in future CR’s or stump up more money, hopefully at big premium to the SP. This can provide CAPEX money and means the project is most probably going to go full steam ahead.