about those BRR performance shares...It's possible those performance shares may be taken down prior to their conversion based on a BRR/Atomaer agreement in October 2008. There are a number of items in the agreement and below is the mention of performance shares. I think it's helpful long-term. Atomaer and, in turn, Ecometals may receive some cash as happened when Atomaer unloaded some Brinkley shares 2 yrs ago. Either way, Atomaer/Ecometals retain a signifcant primary stake in Braemore as Atomaer is registered holder of 315MM ordinary shares. If BRR shareprice continues to bolt in 2009, EC will be the only proxy alternative in the market and should rise based on that fact. It's already looking much better with BRR having erased 7 months of lackluster share performance.
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https://www.braemoreresources.com/im/press_display.php?Id=2008/06oct08
.....Key to the agreement is that the performance shares are now linked to the Leinster Nickel Sulphide Tailings Project and that Braemore and Atomaer have agreed to negotiate in good faith the buyback of the Performance Shares; a reinforcement of the on-going positive relationship between the two companies.”
The key terms of the agreement are as follows:
- The company will adopt the new articles of association, subject to regulatory and shareholder agreement.
- The 305 million Performance Shares currently issued to Atomaer will only convert into ordinary shares upon Braemore entering into an agreement with BHP Billiton Nickel West Pty Limited for the exploitation of the Leinster Nickel Sulphide Tailings Project.
- Braemore and Atomaer have agreed to negotiate in good faith the buyback of the Performance Shares on commercial terms to remove any perceived overhang on Braemore’s ordinary shares (subject to regulatory and shareholder approval, if required) after completion of the order of magnitude economic evaluation and engineering scoping studies as agreed to with BHP Billiton