Yeah, come on Newmont, I thought we were friends.
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Look to be closing out the week at 1.5. Nice work.
Plenty available in Ozzy.... for 1.4,
:)If that fx rate keeps climbing we wont have to worry about the maths too much.:)
Good point, maybe that's the plan, to make a takeover a bit difficult. The Chinese investor group is undisclosed at the moment. St Alban's Pty Ltd is a cover company or SPV. The SPV sounds Australian in origin. I note that in future, the SPV has first right of funding new expansion, and that they'll receive 65% of the gold/silver returns from the initial area after costs. But of course their fees for use of the gear will be part of the costs too.
http://www.miningbusiness.net/conten...t-nz-gold-mine
It would have been tidier for a NZ-based outfit like Waihi Gold (Newmont) to stump up the capital, or for shareholders to do it. Even GEL spent NZ$40mill over a few years. I guess the wages will stay here.
SPEs or SPVs are often set up from tax havens etc, allowing the sponsors to stay anonymous, even if they are related to the other parties in an agreement..
http://en.wikipedia.org/wiki/Special_purpose_entity
Here is the office setup for Paul Crosio's Emerald Resources in Hong Kong. A very flash shared serviced office setup, no more than 20 staff per office, and it could be quite a lot less.
http://www.executivecentre.com.hk/lo...east-hong_kong
Been very busy of late so have not got around to make my 2 cents worth. I have been self employed for about 40 years so I do not know what after costs means.After processing by a good accountant a good season can be a bad one and a bad one a top year. So what does after costs mean. Guess for that one we will have to ask someone who has spent their life on wages ,just like the theory of how to raise kids belongs only to those who have no kids. Until this is clear to me I will be voting against this deal--I hold 5 million.
Your idea Yankiwi is a far simpler one and I sure hope it gets looked at.At least there we all have some grounds to know where we are standing. This deal is great for the Chinese and leaves the door wide open to cook the books and take the lot.
I ask management to come forward and explain how this giving up 65% of the company with the possibility of hijacking the rest is in any way good for the company shareholders that they are suppost to represent. For now we should just leave it that anyone wants in buys in on a shareholding basis.
I agree with you on those thoughts Digger. There are already a lot of fish-hooks in this proposal, and I'm not sure they are to the benefit of the existing shareholders. Newmont has not made a move to work with New Talisman that we know of. Maybe this means that on their scale, the proposition is not compelling.
As it stands, I don't think many of the local providers of equipment or mining expertise have been approached in any sensible way. Without the full amount of cash in the coffers, (more than is needed to run admin and do a bit of pottering about) NTL management will be keen to talk to any party that can provide the capital and gear in the short term. But as we are seeing, those parties will also want the lion's share of the loot.
The SPV is called St Albans Pty Ltd. I don't think Pty means Property Ltd as some in the press have assumed, more likely it's Proprietary Ltd. This could be a company shell set up in Hong Kong. There is nothing on the web about this newly formed company.
I had a bit more of a look at Emerald, and there is a related company called Emerald Capital Asia Ltd. This has a partner in Paul Crosio, but the owner of that business is T. David Hodgkinson, who is an international finance and investment executive. He speaks at entrepreneur and mining conferences etc. In 2008, David was a Special Advisor to the Asean China Investment Fund, so he no doubt has some contacts in China.
Emerald Capital may have another serviced office setup in Bangkok (they did in 2010), and Paul Crosio appears to be based in Thailand, not Hong Kong. David Hodgkinson may also be based in the region.