Aurelian Resources Was Stolen By Kinross and Management But Will Not Be Forgotten

The company whose shareholders were better than its management

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Message: Termination Fee

Termination Fee

posted on Jul 27, 2008 11:57AM

It looks like If the deal with Kinross does not go through ,ARU is still responsible for the Termination Fee if DURING THE NEXT 12 Months a deal for 50.1% of the stock is made....

(iii)
within twelve months after the date of this Agreement, either (A) at least
50.01% of the outstanding Common Shares are acquired under such
Acquisition Proposal or another Acquisition Proposal; or (B) the Board of
Directors approves or recommends an Acquisition Proposal, or the
Company enters into a definitive agreement with respect to an Acquisition
Proposal, in which case the Termination Fee shall be paid to Kinross on
the earlier of the date the Common Shares are acquired and the
date the
Acquisition Proposal is consummated and the date the Acquisition
Proposal is approved or recommended or entered into or agreed to.


(b) In the event that the Private Placement has not been completed for any reason
prior to the time when a Termination Fee is otherwise payable, the payment
obligation of the Company shall be satisfied by (i) payment of $24.5 million at the
time that the Termination Fee is normally payable in respect of the Termination
Fee Event in question, and (ii) payment of the balance of $17.5 million payable
upon the earliest of (x) one business day following the execution of a Proposed
Agreement; (y) the completion of one or more equity or debt financings involving
gross proceeds in excess of $50 million and (z) twelve months from the
occurrence of the Termination Fee Event in question.



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