A few further points in reference to the Prospectus. As an aside, I should note that this is one of the more complicated documents i have read in a long while.
It appears that an agreement was reached between the company and Madam Cheung for the provision of consultancy services in relation to the Kazakh transaction. The agreement was for 6 million shares to be issued to Madam Cheung - 3 million after the transaction agreement, 3 million following completion of the acquisition. According to the Appendix 3b issued 29 July, we know that 2 million of these shares have been issued to Madam Cheung (nominee city winner holdings). The prospectus states that 3 million more are likely to be issued following completion of the deal. Not sure what happened to the other 1 million, or if those 2 million already issued are in addition to the 6 million share deal.
However, 3 million shares were issued on 24 August for consultancy services regarding the Kazakhstan deal to a group identified as Gold Gain International Limited. This amount of 3 million shares would likely have breached the 5% substantial holder provision. No notice of substantial holder has been seen therefore no idea who the main parties are. Both these 3 million and the shares held by City Winner (M Cheung) are through J P Morgan Nominees. I have also been unable to see a direct reference in the Prospectus to these 3 million shares.
There is a significant agreement between Ji'an Resources and a company known as Celaric Continental for consultancy services at an agreed fee of $140 million. Unlcear if this is for consultancy or if they are a go between for payment for the Kazakhstan sites. Ie is this a payment for consultancy in addition to the sites?
For a quick rundown i would suggest readinf between pages 265 and 276 of the Prospectus, (ASX announcement 10 November)
FMJ Price at posting:
$1.00 Sentiment: None Disclosure: Not Held
