The
Intrepid Mines saga continues with
Surya Paloh, an Indonesian media tycoon and founder of the opposition
Partai Nasional Demokrat, to the ‘rescue’. Bringing in big guns to a commercial dispute is sometimes useful in Indonesia … although, in this case, it would be equivalent to
Rupert Murdoch accepting 5% (almost free carried) of a Chinese company to solve their ownership/permitting difficulties with an Australian iron ore company …
“Mr Paloh and his associates will be working closely with the company and assisting engagement with key Indonesian stakeholders, particularly in both central and local government. As a substantial shareholder in Intrepid, whose interests are now fully aligned with existing Intrepid shareholders, Mr Paloh is well-placed to assist in promoting the company's profile and business interests within Indonesia,” Intrepid
stated.
The dual Australian/Canadian-listed company (TSX:IAU)(ASX:IAU) also announced it had agreed to place 27,680,017 ordinary shares, representing approximately 5% of the Company's expanded issued capital, to Paloh “for a nominal price, subject to provisional TSX approval being obtained.”
Additionally, the company will issue to Paloh, for no consideration, 25,604,016 Performance Rights to ordinary shares, which vest upon the daily volume-weighted average price of the company's shares equalling or exceeding A$1.00 for one full calendar month on the ASX and C$1.00 for one full calendar month on the TSX, and which lapse after one year should vesting not have occurred. This target would represent value uplift of over four times based on current market prices.
Intrepid has further agreed to issue an additional 25,604,016 Performance Rights to ordinary shares, subject to requisite TSX approvals being obtained. The Performance Rights vest upon the daily volume-weighted average price of the Company's shares equalling or exceeding A$1.20 for one full calendar month on the ASX and C$1.20 for one full calendar month on the TSX, and lapse after one year should vesting not have occurred. This target would represent value uplift of over five times based on current market prices.
Intrepid CEO,
Brad Gordon, also announced the company’s “recent opening of a Representative Office in Jakarta”, indicating that the company had no legal entity in Indonesia until early 2012.