Hi Everyone,What a ridiculous terms that the IGC management...

Hi Everyone,

What a ridiculous terms that the IGC management agreed with NKP:

1) Upfront payment of A$10M to IGC to secure 5% of the Tubatse Project - Upon completion of the A$10m payment, Nkwe will get a 5% interest in the Tubatse
Project. If the second leg of the transaction is not completed, IGC will retain their 10%
interest.

2)A$50M on or before the earlier of:
Xstrata South Africa exercising its option with NKWE to acquire a 50%
interest in the Tubatse PGM Project (collectively the farms
Hoepakrantz, Nooitverwacht, Eerste Geluk situated on the eastern limb of the Bushveld Igneous Complex); and the grant of the Mining Approval in respect of the Tubatse Project.Upon completion.

The terms that the IGC management agreed on is completely in favour of NKP not with the IGC shareholder, the management is selling all the IGC shareholder short, there are lots of questions to be asked, why NKP can pay only 10 millions to secure 5% of the project but not 20 millions according to the sales term of 60 millions? Why the whole sales of asset have to depend on Xstrata to exercise their option before IGC get their payment? The term has been presented by the IGC management completely in favour of NKP, aren't they suppose to work for the best interest of the shareholder not NKP or the management themselves!

I have two concerns in this, one is the term of sale of the project is very suspicious beause it is all in favour of the buyer (NKP). As a seller, IGC have done nothing wrong, we gave NKP an extension for them to get the funding, during the extension of the agreement, the platinium price have jump up 1/3 to USD 1200. As a seller, we should be hoping the sale didn't go thru and go back to the negotiating table to negotiate a better deal for IGC, instead what the management did is to push thru the sale of project ASAP with term completely not in the company's best interest. What will happen is if Xstrata didn't proceed with the arrangement, NKP will pick up the 5% of the project for half the valuation price. If Xstrata dicided to go with the arrangement, NKP will pickup the 15% of the project that is worth hundreds of millions of dollars for only 60 million. To me, this term is unacceptable and should never be presented to the IGC shareholder.

The second concern is the acquisition of the oil & gas term that all the company's involve is the IGC Chsirman is mate and close associate, the amount of share that IGC have to issue (675 Millions share) compares to the share on issue of 152 Millions share, this will dilute the share and effectively hang over the control to other parties. Not to mention the risky nature of the oil & gas project.

In my opinion, the IGC management is not doing their job and should be sacked or replaced in the board, the deal they structured is not for the best interest of the company but the other party. It make you wonder what is the intention of this? is someone going to benefit big time in this deal? I am pretty sure that the shareholder is not going to benefit in this! What the management is doing is to use the shareholder's money to gamble big time. If they are lucky, their reward is huge, if they are not lucky, they are not going to lose their money, the one and only party that is going to suffer is the shareholder and we will see the share price sinks like a Titanic.

So what is the go in this? Are we going to sit around and do nothing and allow them to push thru the sale of the platinium project at dirt cheap price and term that is completly unfavourable to us and use the company's fund to gamble big time on another risky project. As a shareholder, you will never going to see any shine on the share price, not to mention that the share on issue is diluted further at a ratio of 1 to 5 after the acquistition of the oil & gas project and the other company have the full control of the company (70 - 80% of the voting power).

In my opinion, we should get together in the EGM to vote "NO" as a protest to the action that the IGC management and ask all the questions regarding the sales agreement with NKP and the acquisition of the oil & gas project and demand full explanation from the IGC management. The IGC management is not going to get away with this so easily!

Tell me what you think in this, any contribution will help. I am sure someone is closely monitoring this forum to see what the reaction of the shareholder.

Ray