Prosperity Minerals said that all parties have now agreed to proposed changes to its parent company's proposal to buy All Wealthy Capital.
All Wealthy Capital has a 70% stake in Billion Win Capital, which owns a Malaysian iron ore operation, and it is this operation which Prosperity Minerals wants to get access to.
So keen is Prosperity to secure long term supplies at competitive prices that its majority shareholder, Prosperity International Holdings, has negotiated to buy 100% of Billion Win Capital for USD 500 million.
Upon completion of PIHL's purchase, PIHL will give Prosperity 30 days to decide whether to take up an option to buy up to 7.55% of BWC for USD 25 million.
The 7.55% interest is valued at USD 37.75 million, giving Prosperity instant 51% uplift in the value of its USD 25 million investment based on a provision in the original sale and purchase agreement.
If Prosperity exercises this option, it will also be given the opportunity to enter into a very attractive 10 year iron ore off take agreement as part of the proposed deal. Furthermore, Prosperity will also have the opportunity to increase its holding in BWC by a further 1.2% for USD 6 million.
