Ann: Offer to acquire Reward Zinc JV Interest,RXL-IMI.AX, page-45

Looks like RXL are giving away their 30% interest of the Rewards JV (that includes 30% of Teena and Mrytle orebodies) to IMI Medical for $2M cash and $12.8M are swapping 2 of their perfectly good RXL shares for 1 share in dead suspended worthless shell that may eventually become IMI Zinc Exploration which will own the 30% interest in the Reward JV. All assuming Teck does not exercise its pre-emptive right.

So its a ham fisted attempt to "spin off" off the Reward JV part of RXL as possibly an attempt to flush out either Teck or somebody else to purchase 30% of a very deep and massive capital cost orebody.

Presumably the existing RXL shareholders get to keep the rest of the RXL assets but what are RXL going to do with their $2M in cash? That won't even get you a look in to any decent asset and it won't get you much in the way of drilling either.

I still don't understand the reasoning of RXL management in this. As it stands they have a 49% interest in an orebody thats being drilled out and explored for by Teck (whom have to do all the work and spend their money to earn-in and increase their stake to 70%), thus RXL goes down to 30% of the Reward JV resource (Teena and Mrytle), they were still listed and trading up to yesterday and anyone whom wanted to get their hands on 30% of the Teena and Mrytle orebodies could buy shares in RXL for about 2.4c. Whats wrong with that plan?

And if in the future Teck decide they want to proceed with construction of a mine project they do their pre-emptive thing and end up owning it all. As a matter of fact - as others have pointed out - this has given Teck a "price tag" and an opportunity in which they only have to beat the current offer from IMI medical by $1 to own it all soon. I would be willing to bet that Teck won't want to pay out additional money to "johnny come lately" IMI Medical shareholders whom have been co-opted into this bizarre transaction.