Hello Moto, from Annual report 2008 and previous...

Hello Moto, from Annual report 2008 and previous reports.

Basically as I read it JR sold his interests in San Saba and Springfield to RMG at fair value of 2 cents per share for the 15m shares plus options, and on the condition that he and Mark Stevenson be appointed to the board of RMG.


12. Acquisition of Subsidiaries
RMG settled on the acquisition of 100% of Springfield Minerals Pty Ltd and San Saba Pty
Ltd on 28 September 2007, companies involved in mineral exploration activities. The
purchase was satisfied by the issue of 75,000,000 ordinary shares at two (2) cents each,
17,500,000 options and 17,500,000 convertible performance shares. The consideration was
paid as to 15,000,000 ordinary shares, 3,500,000 options and 3,500,000 convertible
performance shares to Larca Pty Ltd, a company associated with Mr J E Risinger, and
60,000,000 ordinary shares, 14,000,000 options and 14,000,000 convertible performance
shares to Holloman Minerals Pty Ltd, a company associated with Mr M E Stevenson. The
issue price of the ordinary shares was based on the share market price at the date of
acquisition and the options were valued applying the Black-Scholes formula. At this stage,
the convertible performance shares have not been valued, as the exploration work to date
since acquisition has been minimal, hence the ability to assess the probability or not of the
likelihood of meeting the performance hurdles has yet to be reached.