update strikes interest in peruvian iron ore , page-11

Top-pick. I agree with what you are saying about what the JPM is in relation to, however the poorly written announcement reads in two parts:

"Peruvian Judiciary confirms inapplicability of “judicial precautionary measure” to Strike´s right
to exercise its options to move to 51% direct interest in flagship Peruvian iron ore assets."

As well as:

"Peruvian Judiciary has formally notified AF that the judicial precautionary measure (JPM) requested
by D&C Group is inapplicable to, and does not affect in any manner whatsoever, the exercise of the
options effected by Strike on 29 May 2008 to purchase an additional 38.5% interest in AF (Options)."

Thus,in summary:

- yes, the JPM applies to the 17% interests (although the ann has an error in this regard)
- PJ says the JPM does not apply
- even though the JPM does not apply, as a result of it being introduced, the 17% interest has been temporarily suspended
- because the JPM is not applicable - the temporary suspension should be lifted
- even if the JPM did apply, which is doesn't, D&C have not commenced arbitration proceedings

Bottom line, D&C's JPM has been rejected.

The issue is that the temporary suspension has not yet been lifted. This is due to legal technicalities, but the fact that the JPM has been ruled inapplicable makes the suspension irrelevant and therefore any arbitration proceeding are also irrelevant.

SRK have instigated their own proceedings to prevent any future claims by D&C being made.

Bottom line, D&C have failed. SRK's interests will be confirmed. The legal process, however, needs to run it's course. They have to go through the motions.