new global force in potash, page-46

Very impressive numbers. How will it work?

As I see it, the late June EGM will vote to raise $16M from Top and Yub (shares) and $12M from HK investors (con notes). This $ will be used to fund: (i) further Aus exploration (ii)support general working capital costs incl. transaction and due diligence costs assoc with Kaz proposed purchase and (iii) the 2nd tranche payment of $24M or partially so.

That covers that aspect of the matter. Altho not stated anywhere, the co must have reached agreement with the seller to postpone the payment of the $24M from the orig date of 18/4 to after EGM in late june.

The $24M is refundable if the acq. does not proceed. Also if the acq. fails then Fortis will be suspended.

A 2nd Egm is planned for July so as to raise $208M from Top and Yub so as to fund the proposed acq. and assoc. working costs.

No doubt as part of the due diligence Ercosplan continues to work on a jorc-compliant report and with the co "to provide an update in due course" on that. The 22/2 Ann also states of other due dil and conditions that must be satisfied before the purchase can proceed.

What can happen? (1)EGM is fine (2)$28M comes into the kick (3)this money is put to use as set out in above 2nd par.(4)contract conditions are either satisfied or are not satisfied (5)if not satisfied, then no Kaz potash mines are bought,$25M is refunded, the SP plunges and the co is suspended (6)if satisfied then 2nd EGM occurs (but I suppose it could happen before conditions are satisfied) and if OK then everyone becomes rich or richer as the case may be.

Does anyone see it differently?