Dear Mr xxx
Firstly let me assure you that there is no suggestion that the Marenica project will not continue as before, but with intended better outcomes for all shareholders. I will answer your questions as you have written them: 1. This is quite standard practice and is no different to the way in which EPLs are dealt with for large and small companies alike, whether it is RioTinto or Areva or WME. There is no uncertainty, the Ministry simply needs to undertake its bureaucratic processes and in Africa these can be slow. 2. WME decides which 25% it drops off. This is a requirement of the Namibian law and has always been the case with any EPL granted to any exploration company in Namibia. Again I reiterate that this is quite normal. The Minister can only reject a renewal on very slim grounds which are clearly spelled out in legislation. Again, it is not something to fear. 3.The 20% is owned by a Namibian resident and WME has earned its right to the 80%. We are simply finalising the document to reflect that and this will be completed within the next week. The agreement covers the operation of the Marenica project right through to mining and beyond. All shareholders in Marenica Minerals (Pty) Ltd will have to agree to the terms of the agreement before being able to purchase any share in that company and the issue of any further shares in Marenica has to be agreed between WME (80% holder) and the Namibian resident (20% holder). 4. WME will have first right of refusal to buy the 20% if it is to be sold. There is always the possibility of other shareholding arrangements depending on the capital requirements of Marenica. This will not change before a decision is made to mine however and in any event WME will always be seeking the best deal for its shareholders. 5. I am unable to provide any clarity on what Mr Reisgys might do, but in any event WME will have access to geological expertise to ensure the project progresses as quickly as it can.
Again I make the point that there should not be uncertainty. The changes at Board level will not adversely affect the company's operations and the licence renewal process is quite normal, albeit frustrating. I thank you for your interest and would like to meet with you perhaps in November at the Munich Investment Conference.
Gary Stokes
Managing Director
-----Original Message-----
Dear Mr. Stokes,
I know the most german Shareholders and I have good contact to them. I am sure, if some question are not answered, there will be a terrably ugly crash down of the wme-shareprice in germany. And You know that the AUS-SP in the past often has been made in germany.
The Questions are:
Is it right, that a final commitment about the Licence for Marenica is not present? It seems, that it could need a time about 2 years? Is it right that there can be a time of 2 years of uncertainty about the licence? Under which prerequisite the marenica-licence will be rejected? Is this the nornmal way? Wich part of land you have to give up (-25%)? No one knows if You can chosse this area, or the ministerium of Namibia will determine this? Who decides this, and about which reasons? What is about the 80:20 area-agreement.Who has the 20%? It is unklear if you are in possession of the 80% ever. Will this agreement be for the future, too? Could it be, that your participation will be smaller, or bigger, or 100%, maybe. Will Reisgys extend his employment relationship? Or should he quit his job before the end of the contract?
Mr. Stokes, this are really important questions in germany. Here is a very massive uncertainty about the future of West Australian Metals/marenica-Project.
It would be a big help, if You answering quickly.
Thank You very much,
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