range view from the uk by stateoftheonion, page-3

"Pete of course will have known most if not all of this when he made the deal – and he had good leverage at the negotiating table so we have to presume he used it – he did not have to do this deal – IOP did – so God I hope he has nailed this one."

SOTO.
You assume a normal unassociated merge.

The fact of the matter is there has been close ties to IOP for a long time.
You might be interested to know that this is not the first time IOP. (Then Goldfields) has announced a merge with Ol' Cap'en pete (NKP).
I have already discussed Goldfields and there attempt to sell 15% of 3 farms to NKP for $60m. (Market cap $30m)

Before that deal was stuck. There was to be a take over of Goldfields by NKP (12 Jan 2009). Lets just say the Directors were going to do very well.

Those director?
Sage (Cap Lambert)
Tuner. (Cap Lambert)
Provey (Range)
Flegg. (Range, Continental Capital. (Pretty much pete's side kick)

All Directors of other company's Ol'pete held Directorships in at the time.

Goldfeilds got their 15% of these farms by doing $10m in exploration.
As of the 2008 Annual they note $7.5m worth of exploration.
How much exploration do you get for $7.5m?
According to this annual. Just 30 holes. Only 26 assayed.
$250,000 per hole. Really?
(Just a side note. The SA court put a stop to all exploration on these farms the same year which was never disclosed by any company involved)

Of course in 7 Oct 2009 the Timis merge was announced.

8 Oct 2009. NKP announced they were to pay $10m for 5% for farms with a court injunction on all exploration.

What you will also see in the IOP 2012 annual is this under "loans"

Page 63
In May 2011, the Company obtained a US$10 million loan facility (“Loan Facility A”) from a company which
has four common directors with that of International Petroleum.
Loan Facility A is secured by a fixed and
floating charge over the Company
The amount drawn down under Loan Facility A was repayable by the Company in full on the earlier of;
• 31 March 2013;
• receipt of the A$45 million cash consideration from Nkwe under its agreement with Nkwe for the sale
of the Company’s interest in the Tubatse Project; and
• receipt of any equity or convertible loan facility exceeding US$10 million cumulatively until 31 March
2013 unless otherwise agreed in writing by the lender.

So just to re-cap.

They lent themselves money from African Petroleum Corporation Limited at 3%pa.
That they also now have an impairment of these farms.

IOP Liabilities. $70m
RRS Liabilities. $65M.

WHAT A CRACKER OF A DEAL!
AIM done 24%.