GZ I had trouble sleeping last night - a few things kept...

GZ I had trouble sleeping last night - a few things kept regurgitation like serious reflux.


The second lead statements in PRH's announcement yesterday was indigestible to me. The two headlines were:-

1. "Silver Lake and Phillips River have entered into:
an asset sale agreement (“Asset Sale Agreement”)
pursuant to which Silver Lake will acquire Phillips River’s
Munglinup Project;

and

2. an exclusivity agreement to restructure the funding for
Phillips River and for Silver lake to acquire certain Phillips River Assets."

The second headline says PRH gives SLR exclusive rights to restructure funding for Phillips River - what does that mean - the shareholders and the market urgently need to know more about this - it is extremely market sensitive. If an agreement has been reached the details must be disclosed IMMEDIATELY.

Also it gives SLR exclusive rights to aquire certain Phillips River Assets (other than Munglinup tenements). Are they telling us that they have signed an agreement which says PRH management will sell some shareholder assets and only take offers from one party........is this legal? How can shareholders get a fair offer if there is only one entity that can be involved in the "offer process". I repeat - is this legal (within the Trade Practices Act)? Aquisition via an exclusive SOA was OK because it is a very legal process which requires a 75% shareholder vote but an "exclusive sale" is "non-competitive and realy a bit of an oxymoron!

Also the process for subscription to convertable notes is still is open (within subscribed limits) allowing SLR to still gain some powerful leverage and dilute to interest of existing shareholders. What price will the next lot of convertable notes be issued at if the last lot were at 18 cents (and that was when the SOA deal was in place).

DVo1 Funds Management have taken on a substantial interest at an average price in the high 20's. Surely this was not just a gamble on making a quick buck via the SOA deal. Either way whether they saw a quick profit or have deeper interest they have the grunt like some other major shareholders to make some loud noise in the PRH office. Even some larger shareholders that were reasonably supportive of the SOA must now be seeking true transparency.

Why are our Chinese friends being difficult with the offtake agreement. Could it be that they would like not just the lead and zinc but the whole company (including the wholey owned Myamba Farm). With the SOA falling through supposedly because of the sticking point of their offtake rights it could be they might actually want to aquire a controlling interest. The proposed exclusive asset sale I think could be a defensive ploy on the part of PRH management.

PRH shareholders - the fat lady has not even got out of bed yet! Too many twists in store to play out first.