Ann: Takeover Offer for Kalgoorlie Mining Company, page-15

re: Ann: NGF: Takeover Offer for Kalgoorlie M... Totally screwed.

Yes, the current deal is now worth .00864c and who knows what it will finally be worth in 2 months, possibly around .006c per KMC share.

The KMC directors have been tired of dealing with the problems for some time and were looking for any deal. They want to move on. They all have other more lucrative projects they wish to devote their time to.

It would be interesting to know what private deals they have struck with NGF (if any), regarding their own shareholdings.

As a guess, I would expect that Mr Lee and Mr Kwok have received gentlemen's agreements from the owners of NGF that guarantee the purchase of their post acquisition NGF stock at an agreed price (or via a formula). And when their shares are transferred into NGF holdings, they will not fall within 5%, so the sales agreements will not have to be disclosed.

Whereas all the retail shareholders will need to sell their NGF shares online, and you will have very little hope of doing this. At the moment there is only 1 buyer for NGF at a stupidly low buy price.

We will be stuck with these shares for eternity, and will never get a dividend. Why?

Well, Nicto asked this great question, which will give you some insight into why.

(Nicto) "Anyone know why NGF has not been taken private?".

Nicto, NGF is Zijin, they are listed out of Hong Kong, but like all Chinese companies, only exist because of patronage from the Chinese government and Central Committee. The men who control Zijin are all members of "The Party".

The term "Private" with regard to any Chinese company is in fact a misnomer.

The Australian government and Foreign Review Board do not take lightly, the "direct" ownership by "private" Chinese companies (ie. The Chinese Communist Party) of operations on Australian soil. However, it is viewed more leniently if the Chinese company is a public listed company in Australia, even if 99% of the shares are owned by a Chinese government entity, like Zijin. The reason for this is because of the powers that the Commonwealth possess with regard to laws governing the direct control of assets on Australian soil by foreign interests. It gets complex.

Anyway, effectively now, all shareholders of NGF (ie. KMC shareholders) are "guest" peasants of the People's Republic of China. They have your money. They are taking your gold and exporting back to China (which is why they will never pay a dividend), and there is nothing you can do about it, you won't even be able to sell your shares.

Effectively, you have been exiled into a financial "Labour Camp", you have been sent to a virtual Gulag.

Welcome Comrades !!!

Gw

I can calculate the motions of the heavenly bodies, but not the madness of people.
(Sir Isaac Newton)