I had a relook at the latest quarterly report, and noticed the...

I had a relook at the latest quarterly report, and noticed the deal caz has with winmar resources for the Hamersley Iron Ore Project which I missed when quarterly first released

I have posted relevant bits below but essentially if winmar want to take 100% ownership, they have agreed to pay $0.50 per tonne of JORC compliant resource within 18 months (assume from when deal signed) or $1 per tonne after 18 months

the inferred resource is 143mt but CAZ hoping for 250mt to 300mt, so if winmar want to buy caz out in the first 18 months that is effectively $0.59 per share on 143mT or $1.03 per share if they get to 250mT

alternatively winmar pays effectively $1.18 per share for 143mt or $2.06 per share on 250mt if the deal is done after 18 months.

I not sure when wimnar are due to relist or how their raising went, apart from CAZ mentioning in quarterly report that there was significant investor interest

given all this, it would seem the market is placing minimum (if any) value on this deal



Hamersley Iron Ore Project
(Cazaly reducing to 49% - Winmar Resources Ltd aiming to relist in February 2011)
- Global Maiden inferred resource of 143mt @ 52.6% Fe (55.6% CaFe)
-Main CID Zone comprises 92mt @ 54.9% Fe (58.4% CaFe)
- Excellent potential to expand. Just 1.5km drilled from 2.8km long target
- Exploration Target of 250 to 300mt @ 52-55% Fe (55-59% CaFe)
- Project lies adjacent to FMG Solomon deposits

During the quarter Cazaly announced the divestment of an initial 51% interest in the Hamersley Iron Ore project, to Winmar Resources Limited (ASX:WFE). Winmar lodged a prospectus with the ASX on 10th January 2011 and is aiming to raise $7M and list during February 2011. The Company has been informed that there has been significant investor interest in the relisting of Winmar Resources

WFE also has the right to purchase 100% equity interest in the project by paying CAZ $0.50/tonne of its participating interest in a JORC compliant mineral resource within 18 months or, if between 18 months and 36 months, by the payment of $1.00/tonne of CAZs participating interest in a JORC compliant mineral resource. Current inferred resources for the project are stated at 143Mt @ 52.6% Fe (55.6% CaFe). CAZ will be managers of the project and responsible to completion of the DFS unless it sells its remaining equity to WFE.