Lynas Sale of Crown/Coors and Swan to Forge
Vote NO and if you cannot attend the egm send your proxy vote nominating the Australian Shareholders Association.
Below is a copy of just one of the emails I have sent.
To: Lynas <general@lynascorp.com>
Cc:
Martin.Ferguson.MP@aph.gov.au;
Stephen.Smith.MP@aph.gov.au;
Wayne.Swan.MP@aph.gov.au;
Bill.Shorten.MP@aph.gov.au; Australian Shareholders Association <info@australianshareholders.com.au>;
BFrith@acenet.com.au;
jukieoz836@hotmail.com;
fm_walsh@optusnet.com.au;
mwest@fairfaxmedia.com.au
Sent: Sun, 24 April, 2011 3:32:30 AM
Subject: Lynas Sale of Crown/Coors and Swan, Rare Earths and Pollymetallic and Phosphate Deposits
Dear Gloria Rodgers,
Executive Assistant,
Would you kindly forward the following email onto all of the Directors and our Executive Chairman Nicholas Curtis.
With Thanks
.........................
Dear Sirs,
Valuation of Crown/Coors and Swan
All of the figures and information below should have been in Lynas' Explanatory Memorandum
So, where is the full disclosure?
How are we expected to make an honest evaluation of the Forge proposal if there is an apparent deliberate non-disclosure?
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The BDA (Behre Dolbear Australia Pty Limited) report only states
4.3 & 4.4 Resources
Rare Earths: resource estimates have been defined but are not further discussed in this review which deals only with the rare metals and phosphate resources.
Why then does one have to look in the Forge announcement on March 16 2011 to find that there is an undisclosed additional resource attached to the Swan deposit and that the Swan deposit also has rare earths?
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i.e. 13.7 Mt of 6.4% P2O5, 1.51% TReO+Y, 166 ppm Ta2O5 and 3762 ppm Nb2O5 and is, therefore, additional to the phosphate resource.
and 77Mt at 13.6% P2O5 (with 5639 Nb2O5, 0.81% TReO+Y and 162 ppm Ta2O5)
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The Swan deposit has 77Mt x .81% Reo = 623,000 t
plus an additional 13.7Mt x 1.51% Reo = 206,870 t
and Crown has 37.7 Mt x 1.16% Reo = 437,200
A total of 1,267,070 t Rare Earth Ore in the Crown and Swan Deposits.
Using a calculated basket price for the Crown deposit of $ 183 per Kg and if Swan has similar grades of heavy rare earths it equates to over $231 Billion for Crown and Swan REE’s.
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Then there is the Niobium and Tantalum and Phosphate (Mr Robert Duncan inferred resource for the Swan Deposit of 250Mt at 18% Phosphate) and also about 250Mt of iron at about 40%.
Using prices of $125 per Kilogram for Niobium metal and $500 per Kilogram for Tantalum metal
and an assumed value for Phosphate of $100 per ton the following calculated values can be derived:-
Swan Deposit
13.7 Mt Niobium $6.4B (3762ppm); Tantalum $1.1B (166ppm); Phosphate $0.088B (6.4%)
77.0 Mt Niobium $54.3B (5639ppm); Tantalum $6.2B (162ppm); Phosphate $1.05B (13.6%)
Crown Deposit
37.7 Mt Niobium $50.4B (1.07%); Tantalum $4.5B (.024%); Phosphate $0.3B (8%)
This gives a total value for the Swan and Crown Deposits as follows:-
Niobium $111.4B; Tantalum $11.8B Phosphate $1.44B
This inferred resource of Niobium, Tantalum and Phosphate would therefore have an estimated value of $125B using the calculations as shown above.
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A major concern is the amount of rare earths, over 1,267,000ton. Correct me if I am wrong but there appears to be more rare earths in the Swan and Crown deposits than there is in Lynas' CLD (Central Lanthanide Deposit).
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Also with the way the proposal is structured Forge is free to conduct exploration, mining, concentration, processing and related activities within each sublease and OWN all minerals recovered by, or for, Forge subject to certain rights of Lynas to take delivery of an intermediate Rare Earths by-products;
Lynas is signing over the rights to all Minerals discovered within the subleased areas.
So the upside to the inferred resources above is anyones guess.
How do you justify this?
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And Lynas is selling all of the above estimated $231B+$125B = $356B + potential discoveries, for a sale price of $20.7 million. In all honesty, how can you justify this master agreement with Forge?
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I call on Nicholas Curtis and all Director to address the concerns detailed above.
I call on the Board of Directors to Rescind the Proposed Sale of Crown/Coors and Swan.