I’ve been following the EXCO/Round Oak/Ausmex saga since it started the JV. Round Oak and EXCO both subsidiaries of WHSP. Seems: Round Oak bought low grade ore from Ausmex for $5m. Paid $2.5m cash and their sister company EXCO Resources Pty Ltd entered into a JV in one of their EPM tenements to cover the rest of the $5m ($2.5m) seems to convince Ausmex to do the deal EXCO in the JV agreement promised to process all of the ore mined from the JV EPM at their sister companies Round Oak’s processing plant in Cloncurry. ( this has been reported multiple times in Ausmex reports) Now WHSP’s annual report says Round Oak have sold the plant. So seems EXCO have been hung out to dry. Seems now siblings Round Oak and EXCO blaming each other. Round Oak now saying “We have no deal with EXCO to process Ausmex ore.” If you read the recent Prospectus to IPO Round Oak there is no mention of EXCO and Ausmex deal and then suddenly out of nowhere WHSP pull the IPO 24 hours before listing. It gets more intriguing after doing a quick DD on WHSP/Round Oak Minerals/EXCO resources directors the same and the CEO is the same person for both Round Oak and EXCO. Ok Ive heard some directors and CEO’s fall asleep at Board Meetings. Question: How could the directors of EXCO offer a deal to Ausmex to process the ore from their JV tenements guaranteeing to be treated at their sister company’s Round Oaks plant. Then the same directors who are directors of Round Oak say: there is no agreement to process Ausmex’s ore from the JV and sell the process plant? All of the information is public. Click on ASIC for directors of WH Soul Pattinson / Round oak minerals Pty Ltd / EXCO Resources Pty Ltd and you will see. Same directors , CEO same for EXCO and Round Oak. . The funniest thing of all is that WHSP Annual Report and Round Oak Minerals own Reports speak volumes “by not saying anything about the JV agreement and the obligations” Can’t see much in the way of transparency. Maybe it will work it’s way out of this fumble. From a shareholders perspective I bought Ausmex shares based on the EXCO JV and that EXCO was to process the ore from the JV at their sister company, Round Oak processing plant. EXCO have some exposing to do in my opinion. If I have anything wrong here let me know. DYOI
TBA Price at posting:
3.4¢ Sentiment: Buy Disclosure: Held
(20min delay)