Re: NSL - NSL Health
Regarding the land acquistion strategy, we are only guided by what NSL has announced so far ... read on -
7/12/07 NSL Announcement excerpt -
Austind has
negotiated an MOU to purchase Circa 800 acres of freehold land from the land owners. Once the land acquisition is completed, Austind will seek to secure government permitting for mineral tenure (mining lease or equivalent) over the project area and surrounds (estimated to be up to 1,000 acres in total).
Question : Does the MoU mean anything? Signing the Memorandum of Understanding
is an important step. Both parties are
committed to doing whatever is necessary to come to a
mutual agreement as quickly as possible.
Note : A MEMORANDUM OF UNDERSTANDING, which may also be called “an agreement in principle” or “a letter of intent” is an
instrument which signifies an intention to negotiate a contract in the future. It is
not intended to be a legally binding document. It is important to include a specific clause in the document which negates any intention to create a binding relationship, for example, this document is a Memorandum of Understanding and is not intended to create binding or legal obligations on either party.
1/2/08 NSL Announcement excerpt -
Austind is continuing discussions to raise up to
$11 million to fund the land acquisition strategy, mining permit applications, joint venture expenditure and general working capital.
Austind has also negotiated “Non Objection Certificates” from the owners of the land to which the mining permit relates. This process should ensure that the mining permit application will be processed without challenge from the local land owners. In addition, Austind has negotiated to purchase circa up to 1000 acres of the freehold land from the land owners covering the Project area. The estimated total acquisition cost is expected to be approximately $10 million and will be funded from Austind’s current equity raising.
The joint venture agreement between NSL and Austind provided that the parties must agree on the land acquisition strategy and various other matters on or prior to 31 January 2008 as conditions precedent to formation of the joint venture. The parties have agreed to extend this date to 29 February 2008 to allow Austind sufficient time to make the mining permit application and deliver to NSL a legal opinion on the land acquisition strategy.
29/2/2008 JV announcement – JV is now UNCONDITIONAL.
Shareholders would also be aware that Austind is currently proceeding with an equity raising of $11 million to fund its various initiatives.
Austind has advised NSL that strong support has been received for the equity raising to date.
8/12/2007 – India eNews
Land acquisition for industry has become a sensitive issue in India. It exploded in a big way when violence broke out in Singur and Nandigram in West Bengal where
farmers have alleged forceful takeover of farmland (circa early 2007).
Newsroom : dated 8/6/2007
New regulations will allow developers to buy land directly from farmers for special economic zones – regions with liberal economic laws designed to encourage investment, especially by foreign companies.State governments had previously bought land under the Land Acquisition Act of 1894 – dating from the colonial era. The law gave governments absolute authority to unilaterally target, price and acquire any agricultural land for industrial projects.
Following China’s example, India plans to create more than 500 SEZs across the country. Commerce minister Kamal Nath has championed SEZs as “engines of growth” which will help boost exports, spur inward foreign investment and create thousands of jobs. Not everyone agrees.
Human rights groups are outraged by the large-scale displacements and loss of livelihoods that the SEZs will cause. They also criticise the government for giving generous fiscal incentives to industry while cutting subsidies on food. Human rights activist Medha Patkar says: “
The government is distributing land to private companies, which is against the farmers and workers of the country.”
27/02/2008 Excerpt from The Economic Times -
The steel industry is resource intensive. Major steel projects are located in relatively backward regions, involving land acquisition and mining activities. Recent public protests against some of the steel projects have indicated that the industry must project a more humane face.
There is also need for involving the displaced and the affected in the growth of the projects by converting them into stakeholders in the company.
The relevant question is -
Can the industry that wants the land compensate the persons engaged in Agriculture adequately so that they will want to give up their land ? If it wants land that is more fertile, farmers will clearly ask for more compensation.
From the available information it is clear that AustInd does not intend to use force to take the land from the land owners.
An MoU is in place for fast tracking negotiations for suitable compensation of the land for the owners. AustInd is raising the approx $11million, part of will be used to compensate the land owners.
Because, in my opinion, you can bet that in the MoU AustInd will focus on -
1. Fair compensation for the farmers, and;
2. Employment opportunities for the families who gave up the land.
What AustInd will be aiming to deliver an attractive compensation package for those families and therefore they will have better annual income that then what they had when they were cultivating the land.
Furthermore, NSL director Mr Peter Wall appears to have the right credentials with the JV agreement process :
Mr Peter Wall - DIRECTOR
Mr Wall graduated from the University of Western Australia with a Bachelor of
Laws and Bachelor of Commerce. He has also completed a Masters of Applied
Finance and Investment.
Following graduation from UWA, Mr Wall commenced employment at a large
Perth based law firm and later joined
Steinepreis Paganin in January 2000.
Mr Wall was appointed a Partner at Steinepreis Paganin on 1 July 2005.
Mr Wall has advised on numerous IPOs and has a wide range of experience in allforms of mergers and acquisitions (including takeovers and schemes of
arrangement). Mr Wall’s other areas of practice include reconstructions, energy and resources, telecommunications, capital markets, corporate and strategic advice, securities law, commercial law and contract law.
Mr Wall has significant experience in successful recapitalisations, including in
recent times: Digital and Voice Media Limited, Environmental Solutions
International Limited, G Retail Limited, Knights Insolvency Administration Limited, Transerv Australia Limited and Centralian Minerals Limited.
Legal Advisors – Steinepreis Paganin – Top Advisors
The mining and resources boom in Western Australia together with the prevalence of smaller listings has propelled Perth based Steinepreis Paganin into the top position of legal advisors with participation in 30 new floats in 2006.
Steinepreis Paganin offers clients a comprehensive range of corporate
legal services. Since its inception, the firm has developed a substantial
corporate practice servicing the needs of clients locally, interstate
and overseas.
The firm’s principal areas of work include:
• initial public offerings;
• takeovers and reverse takeovers;
• mergers and acquisitions (including all types of share sales and asset sales);
• managed investment schemes;
• corporate strategy, structuring and execution;
• AFS licensing and compliance;
• corporate reconstructions;
• mining and resources;
• corporate dispute resolution;
• legal due diligence;
• dual listings; and
• general corporate compliance advice on the Corporations Act and the Listing Rules of Australian Stock Exchange Limited (ASX).
The firm is committed to providing an innovative, quality service and delivering constructive outcomes to its clients at competitive rates.
Our highly qualified professional and administrative staff work hard to
maintain this commitment to quality.
29/02/2008 NSL Announcement excerpt -
Further, Austind has advised NSL that it is progressing well with its proposed significant equity fund raising that will allow it to complete the acquisitions of land at Iron Ore Hill.
This statment, im my opinion, suggests that the main hurdle for the land acquistion is the $10 - $11 million being raised by AustInd. And they have already advised NSL that
strong support has been received for the equity raising to date.
This is purely my own opinion from facts that are freely available ...