FROM the 2010 Annual ReportPlanned IPO in ThailandIn July 2010,...

FROM the 2010 Annual Report

Planned IPO in Thailand
In July 2010, the Group exercised an option to call the preference shares
held by Sinphum Co., Ltd, the Thai preference shareholder in Akara
Mining Limited, pursuant to the shareholders’ agreement between the
Group and Sinphum Co., Ltd. This transaction will facilitate the process
for the Initial Public Offering (IPO) of Akara Mining Limited on the Stock
Exchange of Thailand. In compliance with the shareholders’ agreement,
Sinphum Co., Ltd. will receive a premium of Baht 43 million ($1.5 million)
in excess of the par value of the preference shares being Baht 265 million
($9.5 million). As of the date of this report, Sinphum Co., Ltd. has not
complied with the notice to call the preference shares. The Group is in
discussion with Sinphum Co., Ltd. with regard to it meeting its
obligations under the shareholders’ agreement. Any delay to Sinphum
Co., Ltd. meeting its obligations may impact the timing of any decision
by the Group to implement the IPO.



In addition KCN has the following subsidiaries, not all the Thai assets are owned by Akara, from memory KCN established some of these as exploration vehicles after the Chatree development so that KCN retained 100% upside.



Akara Resources Public Company Limited Thailand Ordinary 100 100
Issara Mining Limited Thailand Ordinary 100 100
Suan Sak Patana Ltd Thailand Ordinary 100 100
Phar Mai Exploration Ltd Thailand Ordinary 100 100
Richaphum Mining Ltd Thailand Ordinary 100 100
Phar Lap Ltd Thailand Ordinary 100 100
Phar Rong Ltd Thailand Ordinary

All they have to do is dust off the IPO and list . Obviously the rich and powerful get an inside ticket but by making the offer fully public minimises sovereign risk .