hagar 1
An excellent posting. I spoke to my mate who works in Chile for BHP and he knows Hebei Wenfeng Iron & Steel Group that they are a first class company and that Hebei Wengfeng Iron & Steel Group does have a presence in Chile through its Chilean subsidiary; Minera San Fierro Limitada. Hebei Wenfeng Iron & Steel Group through Minera San Fierro Limitada is in the process of developing an integrated open pit iron mining and port project a few hundred kilometers north of Vallenar Iron Company?s mineral concessions. Hebei Wenfeng Iron & Steel Group?s website is: www.wfsteel.com
My mate told me that he knows the General Manager of Hebei Wenfeng Iron & Steel Group?s Chilean subsidiary provided me with his contact information and he recommended I speak directly to him. Accordingly, I can confirm to you that all of information contained in your posting is true and correct. Furthermore, I can also confirm that on October 18, 2010 (10 days before the EGM), Hebei Wenfeng Iron & Steel Group did send a written proposal to Ady that was 50% higher in guaranteed cash and royalty payments than the proposal that was recommended by Ady?s for shareholder approval at the EGM. On October 28, 2010 (1 day before the EMG), Hebei Wenfeng Iron & Steel Group received a response to their proposal from Ady?s Australian lawyers rejecting their proposal and stating that said proposal was not a superior proposal to the proposal that was presented by Icarus Derivatives Ltd and in the same letter it is stated that Ady, however, is interested in engaging in conversations with Hebei Wenfeng Iron & Steel Group on the mineral concessions that are not included under the agreement with Icarus Derivatives Ltd.
I can also confirm that Hebei Wengfeng Iron & Steel Group at this date stands firmly behind and committed to the proposal that Hebei Wengfeng Iron & Steel Group sent to Ady on October 18, 2010 and have the financial resources, asset base, technical expertise and experience by which to honor and fulfill the obligations they undertake in their proposal to Ady.
How can it be that Ady?s directors elected not to inform Ady?s shareholders before the EGM that Ady had in fact received a proposal on behalf of the Hebei Wenfeng Iron & Steel Group that was 50% superior to the agreement signed with Icarus Derivatives Ltd with respect to the guaranteed cash payments and royalty payments? Given the fact that Ady?s board received Hebei Wenfeng Iron & Steel Group?s proposal on October 18, 2010; there was ample time to inform Ady?s shareholders of said proposal before the EGM and thus permit the shareholders to decide for themselves which was the superior proposal. The way in which Ady?s board elected to conduct and execute the EGM, the only option that was made available to Ady?s shareholders was to approve or reject the agreement Ady?s board of directors had signed with Icarus Derivatives Ltd (without seeking prior approval from the shareholders to do so). What would have happened at the EMG if Ady?s shareholders had been given the benefit of having prior knowledge of Hebei Wenfeng Iron & Steel Group?s proposal? If Ady?s shareholders had voted to reject the agreement signed with Icarus in favor of the Hebei Wenfeng Iron & Steel Group?s proposal? An imbecile can figure out that the payment of a USD $ 450,000 break fee by Ady to Icarus Derivatives Ltd to break the agreement would be far outweighed by the benefits of a proposal from a world class company in which the guaranteed cash and royalty payments are 50% superior to those contained in the agreement signed with Icarus Derivatives Ltd.
How can it be that Ady?s directors reject a proposal that is 50% superior in guaranteed cash payments and royalty payments from a company with the stature, corporate profile, asset base and financial resources of the Hebei Wenfeng Iron & Steel Group in favor of a inferior proposal in guaranteed cash payments and royalty payments from an opaque BVI entity such as Icarus Derivatives Ltd. who refuses to provide Ady?s shareholders with definitive information regarding who are its shareholders, who are its directors, what are its true assets, what are is its true financial resources and who is backed by another opaque entity acting as its guarantor; Corsair Capital Ltd. a Hong Kong domiciled company who also refuses to provides Ady?s shareholders with definitive information regarding who are its shareholders, who are its directors, what are its true assets, what are is its true financial resources? If I am not mistaken under the Australian Corporations Act, Ady?s directors have a fiduciary obligation to always act in the best interests of Ady and its shareholders.
How can it be that at the EGM, Ady?s Executive Director knowing that Ady has received a proposal from the Hebei Wenfeng Iron & Steel Group that is 50% superior in both guaranteed cash and royalty payments than those contained in the agreement with Icarus Derivatives Ltd. tells certain shareholders that Ady?s board of directors have doubts about ?the other party?s? ability to complete a deal? Was this an objective statement? Is not the Hebei Wenfeng Iron & Steel Group a first class, successful transparent, well financed business organization with demonsratable expertise and experience in iron mining and iron and steel refining? IMHO, if there is or any doubt about a party?s ability to honor its commitments under an agreement with Ady and of a party?s ability to be able to develop and operate a successful and profitable integrated iron mining and port project in Chile, it is unjustified to direct these doubts to the Hebei Wenfeng Iron & Steel Group. If there was objective reasoning and basis by which to doubt Hebei Wenfeng Iron & Steel Group?s ability to complete a deal with Ady, why in the letter of October 28, 2010 rejecting Hebei Wenfeng Iron & Steel Group proposal is it stated that Ady would be interested in discussing a deal with Hebei Wenfeng Iron & Steel Group on Ady?s Chilean mineral concessions that have been excluded from the agreement with Icarus Derivatives Ltd?
Considering Ady?s present and future long business interests; certainly a long term business relationship with Hebei Wenfeng Iron & Steel Group would be far more beneficial for Ady than a business relationship with Icarus Derivatives Ltd and Corsair Capital Ltd. IMHO opinion comparing the benefits of a long term business relationship with Hebei Wenfeng Iron & Steel Group with a long term business relationship with Icarus Derivatives Ltd /Corsair Capital is like comparing the attributes of a mule to a the attributes of stallion in which the objective is to win a horse race. The announcement of the signing of an agreement for the sale of Vallenar iron Company to Icarus Derivatives Ltd with Corsair Capital Ltd acting in the role of guarantor for Icarus Derivatives Ltd had no positive impact on Ady?s SP. IMHO, this is due principally to the commercial qualities of the agreement and to the opaque nature of Icarus Derivatives Ltd and Corsair Capital Ltd. One has to wonder what would have been the impact on Ady?s SP if instead of signing an agreement with Icarus Derivatives Ltd and Corsair Capital, Ady had signed an agreement with Hebei Wenfeng Iron & Steel Group in which the guaranteed cash payments and royalties were 50% superior to those of the Icarus Derivatives Ltd and Corsair Capital agreement?
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