RE: RE: No to the sale of Ezuwini dubsbs
I think... it's actually quite simple,
if we let this thing go to dilution we ( shareholders) would be diluted into oblivion, Originally we did not know we had the right to NOT go to dilution... So if we did dilute, , the June 2012 bondholders would have a vast majority control and we know where their sympathies lie...with Management as they were promised full payment regrdless of how much money goes to teh shareholders.
.
Now if we were to NOT approve the dilution and because the dilution would entail more than 25% of the Cap ( that is my understanding if I'm wrong please let me and us know) but if it's more than 25% of the total Cap it has to be approved by the shareholders. So since we have to approve the dilution it's best not to in this situation,, then we force the June 2012 note holders hand and attempt to force us into receivership.
If we go there (receivership), 1st of all, Anglo Gold who owns 20% of the whole company will be in line like the rest of us.
Do you think they would let this thing go?
They have invested millions here, they want the facility it will blend quite nicely with their other nearby properties and being the smooth operators that they are they were thinking they could get it for a son..
W R O N G
They will be in the same line like everyone else if they don;t come up with a major improvement.
.
They know the value in this property just with what is in the present tailings ponds.here, what close to a billion dollars is it? what happens when they connect their own tailings ponds.
.
Now would you in your right mind let your original investment of 28 million dollars, or 47 million shares be put into the hands of a receiver? Not on your life! You will do what is needed to get control of the operation (s) Meaning after the votes are cast, and let's say they are all NO then AGA will more than likely step up to the plate and offer something they feel that will pass mustard......
They do not want to take the chance on this getting into the hands of another interested buyer. I'm sure there are some out there but the BOD at FIU more than likely ignored them all.
Anyway my long winded answer to you is right now... It's best we lean strongly to ward NO on most of FIU's recommendations I appologize if I took too long in this answer. I hope this helps.