BWN 0.00% 4.9¢ bowen energy limited

its a mystery.

  1. 43 Posts.
    I find it difficult to interpret the BWN / Bhushan JV.
    On 20 Dec 07 BWN published the revised investment agreement with Bhushan.

    Extract from announcement:
    Potential Participation in Projects by Bhushan.
    Bowen Energy has agreed that, in the event it wishes to develop a number of it coal projects in joint venture with an unrelated third party, it will provide Bhushan with a first right of refusal to develop the projects.
    Bhushan will have a right to a 90% interest by fully funding the development of the following projects through to the mine commissioning stage:
    (a) EPC 930;
    (b) EPC 1014 and EPC 1085;
    (c) EPC 1001 and EPC 1002.

    The agreement goes on to say:
    If Bhushan exercises its rights to participate in the development of a Project (which it must do within 60 days) the following provisions will apply.
    1. The Company and Bhushan will within 60 days execute an unincorporated joint venture (JV) for the relevant Project, in which the interests will be held 90% Bhushan: 10% the Company (in the case of the EPCs 930, 1014, 1085,1001, and 1002) and 85% Bhushan Australia: 15% the Company (in the case of the EPC 1045).

    Bhushan have already made 1st payment of $800000 for 2.5m shares on 15 Jan 08 and they have applied to make further 2 payments of total $1600000 for remaining 5m shares.
    Why are they rushing to make the next payments now when under the agreement they are not due until 31 Mar08 and 31 June08?

    The quarterly report and cash flow statement of 29 Jan 08 makes no mention of a net profit sharing with Bhushan. Does this mean Bhushan have not yet taken a share in any of the current projects, and if this is the case why are they making early payment for shares?

    It seems there is a huge difference in the value of the projects to BWN shareholders depending on participation or not-participation of Bhushan. The result of 90% interest in development and profits by Bhushan in any projects it participates in.

    Anyone have ideas on the present situation or do we just have to wait for the next announcement?

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.