Ann: Heads of Agreement Executed , page-9

Ok - So my brief bit of desktop research has turned up the following information. In general it leads me to think we’ll end up with a recapitalization offer similar to Jubilee version 1 (not version 2!), whereby the three parties involved (GLCM, Macquarie and Current Sharholders) roll the company out of administration and listed back onto the ASX.

If this has been a competitive process current shareholders might even get more upfront – otherwise as a relisted company with a new cashed up partner and experienced management current shareholders should probably see a marked improvement in the share price. I come to this conclusion as the last traded share price was a result of the markets expectations at that time (poor management, no cash left, debt owed to Macquarie, Platinum Price, Smokey Hills Operations etc). Obviously with the GLCM team on board (and if they take current shareholders along for the ride) we should see some returns.

At the end of the day this will depend on the deal struck with the administrator and how much of the company current shareholders look to retain.

Hopefully we all have something to look forward to. Changing my Sentiment to HOLD.

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My research:

GLCM is run by Forbes & Manhatten bank in Canada. It is a leading merchant bank with a global focus in resource sectors. Apparently it has a successful track record of identifying high quality assests (i.e. PLA) and further advancing them to production. Since its foundation it has invested more than US$3.0 billion in over 40 countries (i.e. deep pocket investor).

Current/historic investments (they tend to install a management team) include:

http://potassiodobrasil.com.br

http://www.sulliden.com

http://www.belosun.com

http://www.ramcoal.com

It looks like they also partner up with other private funds such as CD Capital:

http://www.cd-capital.com/index.php

Further details from GLCM’s website:

“Global Mining Development Partners (together with its affiliates, the “Fund” or “GMDP”) has been established by Great Lakes Capital Management Inc. (“GLC” or the “Manager) as the independent asset management arm of Forbes & Manhattan (“F&M”), a merchant bank with a global focus on the mining sector. GLC is managed and controlled by David Stein, Mike Hoffman and Stan Bharti (collectively, the “Managing Partners”). GLC is the management company for GMDP and a affiliate of Aberdeen International Inc. (“Aberdeen”), a publicly traded investment company managed by the Managing Partners.
GMDP acquires and develops advanced stage mineral resource assets and creates value by developing them towards full commercial production. Since 2001, the Managing Partners, as principals of F&M and Aberdeen, have invested in, managed and exited, or are currently managing 45 legacy assets (the “Legacy Assets” or the “Legacy Portfolio”), including 28 core mining development assets (the “Core Assets” or the “Core Portfolio”). During their time at F&M and Aberdeen, the senior professionals of GMDP have developed a successful track record of identifying and acquiring high potential mining assets with world class scale and advancing them through the Manager’s de-risking process to create significant shareholder value. Within Core Assets specifically, the firm’s senior professionals, led by the Managing Partners, have invested in excess of $135 million and allocated over $1.65 billion of capital to date, including co-investments.

GLC is launching the Fund to capitalize on our experience, history of success and the current opportunities in the mining sector. There are few, if any, other funds with the ability and experience to develop metals and mining assets throughout the life cycle from resource definition to construction and production. Due to its global footprint and long-term experience in the mining sector, GLC generates substantial deal flow on a proactive and exclusive basis. Today’s mining market provides the Fund with a heightened ability to pursue investments that match its investment criteria and generate compelling risk-adjusted returns.

The Fund is designed to generate strong returns through many facets of the process, including by removing the capital constraints that exist in the publicly traded junior mining market. While it may take years to put a mine into production, public equity investors are not typically long-term investors, and a mining company with a project in development is forced to seek capital from the public equity markets every 6-18 months, regardless of its respective stage in the cycle or the value which can be created over the life of the process. This need may result in substantial dilution to existing investors, potentially at depressed equity prices, especially during prolonged periods of weak equity markets.

The Fund provides a dedicated pool of capital and with the aim of mitigating this inherent public equity valuation risk. The Managing Partners believe that dedicated capital is a competitive advantage in the fragmented and capital-scarce mining market. The Fund will provide a stable source of capital to companies that will allow them to efficiently and profitably move projects towards production. GLC believes that this is a superior funding model compared to a reliance on public equity markets, which are volatile by nature, expensive, and time-consuming for company management looking to source and secure such cyclical funding, particularly within the junior mining sector. Dedicated capital allows management to focus exclusively on the operational and technical responsibilities of their respective assets. The Managing Partners believe a stable capital source for its portfolio companies, with the appropriate operational oversight and managerial expertise, will create significant long-term value for the Fund’s investors”.