The new updated details on the 2 million options (asx announcement http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01048598 )
1,000,000 with exercise price 35 cents per ordinary share and expiry date 17 April 2010 1,000,000 with exercise price 40 cents per ordinary share and expiry date 17 April 2010.
The 2 millions options will expire in 2 days time.
It is very nice and essential that for the company (fund manager or large company) that exercise the options will provide strong expertise and help (apart from providing short term funding of A$ 750k via exercising the option. It is effectively a placement of 2 million shares at 37.5c to raise A$750,000 ) to improve KOR revenue & profit & progress its projects (Geolsec Rock phosphate Project, Magnesium Project, gold [Bobrikovo and Melrose] and uranium [UAU] and exploration projects, etc). They should also pay higher premium to the current share price about 38c and provide after market support after exercising the option (eg to buy more shares on market at higher price and not to take short term profits after exercising the those options at 35c and 40c, or average 37.5c). A few real examples of two strong fund managers from Asia that invested in two small mining companies (NGF and IRL) are given below for your study.
[a] A strong investor/company that buy $20 million worth of NGF shares at 34% premium. It will be nice if KOR can find similar type investors that exercise the 2 million options. Details and the link of the ASX announcement is given below.
ASX/MEDIA ANNOUNCEMENT 2 March 2010 Norton raises $20 million at a 34% premium The board of Norton Gold Fields Limited (Norton or the Company) (ASX: NGF) is pleased to announce the private placement of 79,830,585 shares at a price of 25 cents per share to Hong Kong listed public company, China Precious Metal Resources Holdings Co., Ltd (CPM). The placement, equal to approximately 14.6% of the Companys capital, raised just under $20 million before costs with the shares issued at a 34% premium to the 15-day VWAP. Under the terms of the placement, CPM is entitled to nominate a representative to the Norton Board. Chairman, A. Anthony McLellan, said, This raising further strengthens the Companys balance sheet and gives us some flexibility going forward in both operational and corporate aspects of the business. I welcome China Precious Metal Resources to our register and look forward to working with them and all our other shareholders to build an outstanding gold company.
[B] Alexandra Resources Pty Ltd (ARP) to Provide buying in the market up to A$ 500,000 worth of India Resources (IRL) after placement of shares. [B] Alexandra Resources Pty Ltd (ARP) is an Australian based private equity company. Its main area of interest is investment in the resources sector. ARP is supported by high net worth individuals with significant business interests in Asian countries. It will be nice if KOR can find similar type investors that exercise the 2 million options. Details and the link of the ASX announcement is given below.
ARP has also agreed to acquire $500,000 worth of shares in IRL on market prior to 31 December 2009. However, if the on-market purchase by ARP of IRL shares (aggregated with any other IRL shares held by ARP) will at any time exceed the 20% threshold prescribed under Section 606 of the Corporations Act, then the purchase of any further shares in IRL will be subject to IRL shareholder approval pursuant to section 611 of the Corporations Act, or alternatively, IRL may direct ARP to invest the remaining balance of the on-market share purchases by the issue of convertible notes upon the same terms and conditions as mentioned above.
As always, DYOR and consider individual investment and trading aim, time frame, risk profile, etc.
KOR Price at posting:
39.0¢ Sentiment: LT Buy Disclosure: Held
