shareholder action imf brief, page-5

Hi all,

I think we all need to be looking at the loan agreement between CHG and CMR dated 16 July 2008.

http://www.asx.com.au/asxpdf/20080722/pdf/31b8l1jg41qfpp.pdf

We can't be looking at the conversion of this debt to equity as that has now not taken place.

An independant expert's report was completed by DMR Corporate dated 17 December 2008. This report concluded that it was in the best interests of all shareholders to aprove the conversion of debt to equity at a price of A$0.42 per share.

Significantly though, I cannot find an independant expert's report deeming that the initial loan (dated 16 July 2008) was in the best interest of all shareholders.

It's just a thought, but if no such review was ever completed, there would be a good case that the directors and in particular our man GT were in breach of their duties as directors.

The loan dated 16 July 2008 from CHG granted CHG fixed and floating charges over CMR's assets. When the JV was going smoothly it seems that CHG was happy to convert the secured debt into CMR equity. As soon as the JV appears to turn bad it looks like CHG has changed their mind and decided to stick with their secured debt. With first dibs on all the mine assets, my bet is that CHG won't loose a cent out of this. It seems like the reason the director's wern't saying much at the meeting today is because they were put into administration not because of the JV dispute but because CHG has withdrawn their offer to convert the debt to equity.

Can anyone comment on the detail of the loan from CHG or better still, does anyone have a copy of the loan documents?