APG 0.00% 0.2¢ austpac resources nl

wim 150 win / win ?

  1. 247 Posts.
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    I thought I would open up this discussion as (as posted recently) the Judge (his assistant)has said to expect a decision in May.
    As we know APG always retained 20% ownership of the WIM 150 tenements with the deal with AZC.The dispute with AZC can either go two ways obviously.
    In my observations below I'm assuming that when APG did the deal with Astron that they covered themselves for the contingency that AZC (receivers) would contest the deal and that as such the deal( with Astron) would be void if they lost.
    AZC got thrown a lifeline last Nov from Orient Zirconic Resources (Australia), a company registered last month and owned by Guangdong Orient Zirconic Ind Sci & Tech Co.Basically the part of the deal that affects us is;

    "The purchaser has a further year to require the transfer of Australian Zircon's WIM150 assets for a further $23.75 million payment".

    Here is the two scenarios;
    1. APG LOOSE.
    AZC is free to sell the 80% to Orient Zirconia and APG sells its 20% for a negotiated fee.I would assume a minimum of 20% of 23.75 million being 4.75 million.But why couldn't APG charge a much higher fee (say 8 million and APG wont consider an appeal)as AZC will want this part of the deal to proceed and still pick up 15 plus million!

    2.APG WIN. Assuming there is no appeal APG picks up 5 million from Astron.With what is at stake for AZC, you would assume an appeal would be very closely looked at.Even if APG do win, it would appear that the only thing stopping an appeal (if there are grounds for AZC to appeal)is for APG to negotiate a deal with AZC, but this depends on how tight the deal with Astron is.
    So if we can stay out of the appeals area, I think we are in a win /win.
    Please add your comments or correct me if I have missed something.I have put some links for those who may have missed it.

    http://www.asx.com.au/asxpdf/20101110/pdf/31ts9gsk9qyqsg.pdf

    http://www.asx.com.au/asxpdf/20110329/pdf/41xqn89hf8bny0.pdf

    http://www.adelaidenow.com.au/business/million-chinese-lifeline-for-adelaide-explorer-australian-zircon/story-e6fredj3-1225950957932

    Cozzie

 
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