Legals....Mediation......

Great to see a positive outcome after the mediation between ZEO and the two litigants. ZEO shareholders are in a better position after this resolution than they would have been had the scoping study been done within the required time as per the original term sheet. Under the original term sheet scenario, ZEO would have issued 75 million shares to the Abercorn shareholders, rather than 38 million shares under the present agreement (or settlement). This is a considerable 'dilution' saving. It was made possible because two holders of the performance rights waived their entitlement to the new performance rights (the MD being one of those holders).and the $75k payment to the litigants is a fraction of what the original scoping study would have cost. There is also the very real consideration that a ~$3million contingent liability has been lifted from the company, so it is a very good outcome. The company can proceed without the overhang of legal proceedings. With regard to the future of Abercorn, I would find it hard to believe the Company would proceed with a scoping study without a very good reason.