@reddwarf I agree with you, this looks like a great deal for...

@reddwarf I agree with you, this looks like a great deal for Ansteel and a stinky one for the shareholders.

As at 31 December, GBG has $33.1 million in term deposits, cash and cash equivalents. Ansteel has 535,492,521 shares, the total amount of shares issued as at 31 December 2018 is 1,499,637,059. Therefore we need to focus on the net amount to shareholders - 964,144,538

Based on the current offer, Ansteel with spend $25.068 million to take 100% control over the KML asset. They will receive $22.5 million in cash plus whatever GBG spend on Mount Gunson since 14 June 2018. This is hard to work out as the accounts provide a single line of administration expenses. It could be as high as $1 million.

So for somewhere between $1.5 million and $2.5 million, here is what we get as a shareholder:

• We lose the KML asset
• We still have 5 Board members for a start up asset and a company with less than $10 million in the bank
• We do not know what happens to the $757 million of tax losses. If they transfer, the new GBG will never consume them in my lifetime
• We write off contingent liabilities totalling $231 million (not sure I place much value on this given the share price was $0.013 cents so if it wen under it went under)

So we de-risk the company but we give away the farm to do it.

My vote is pretty simple - No.