Ann: Offer to acquire Reward Zinc JV Interest,RXL-IMI.AX, page-24

I have not been following the RXL story for long but this deal looks to be a shocker!

RXL management are valuing its 30% interest in the Reward Zinc project at 14.8 million, yet Teck paid 15 million earn in for an additional 19% interest (51% - 70%). How does that work when the success of recent resource upgrades "WORLD-CLASS Zn-Pb RESOURCE AT TEENA" has reduced the risk and therefore should have increased the value of the project?

Also in this deal RXL shareholders are to have 50 - 60% of the issued capital of IM Medical, sorry but IM Medical is not worth a cent and don't own anything of potential value so shouldn't RXL shareholders end up with a far greater portion of the ownership of IM Medical.

Happy to be enlighten by others!