Look at announcement on the 10th April 2008The deal for the...

Look at announcement on the 10th April 2008

The deal for the Parys Mountain copper-zinc Project between WMT and Anglesey Mining calls for AUD$2,675,000 in cash; hey, but most important the deal also calls for AUD$4,690,000 in Western Metals shares valued on a 10 day VWAP up to the date falling 3 days prior to the Initial Payment.

As you would agree, the trend in the last few weeks indicates that there are forces pushing the share price down for no other reason than, ti my thoughts this deal which involves so many shares, I do not se any other reasons to explain the falls to have the sp so low in value...


Just look at the big difference in their deal:

If WMT shares were at 12 cents like a they were a month or so, Anglesey Mining will get 39 million shares, but with today’s appalling share price, Anglesey Mining will get a top 67 million shares, big difference. It is in Anglesey Mining interest to have WMT share price to the lowest possible.

Please help me out here if you have other explanations for keeping the sp price so low even with the particular good news on restarting the activities in Tanzania.


Please read:

Commercial Terms
The key commercial terms in relation to the transaction are as follows:
•
Western Metals to pay Anglesey Mining a deposit of AUD$270,000 on the execution of the agreed Term Sheet.
•
Western Metals to conduct up to a 120 day due diligence process on the Project.
•
Upon completion of the due diligence to Western Metals’ satisfaction, Western Metals and Anglesey Mining to execute a formal sale agreement in relation to the Project subject to necessary shareholder approvals.
•
Upon execution of the formal sale agreement, Western Metals to make an initial payment to Anglesey Mining and acquire 100% of the Project. The initial payment will consist of:
o
AUD$2,675,000 in cash; plus
o
AUD$4,690,000 in Western Metals shares valued on a 10 day VWAP up to the date falling 3 days prior to the Initial Payment (Western Metals has retained the option to make this payment in shares, cash or a combination).
•
Western Metals to conduct a bankable feasibility study on the Project which will involve minimum expenditure of AUD$3,250,000 during the first 15 months of the feasibility study with a further minimum spend of AUD$3,250,000 required such that AUD$6,500,000 is expended within 24 months.



DYOR