The issue about the contingent liability is a red herring. Ansteel is not going to close down the mine, they will keep operating for another 30+ years. So there is no possibility that it will ever be called.And there must be a sunset clause on these supplier contingent liabilities. And the tenements in GBG that Ansteel will get should have a royalty to GBG. This is such a poorly negotiated deal, that the Board needs to be sacked. We want the deal renegotiated as follows:
1. Coda to keep 64% of $33.1m of cash in GBG (Ansteel only gets 35% as per its shareholding in GBG) 2. Ansteel cancels its shareholding in CODA. No compensation for shares. 3. The tenements in GBG are valued at market value - potentially $$millions and Ansteel pays for this. 4. GBG gets royalties for mining in its tenements - these are to be paid now at deflated cost due to possibility that it will not be mined for 20 years. 5. Ansteel takes full responsible for Contingent Liabilities. 6. Ansteel pays 10c per share.
