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Message: Wits Basin announces termination of merger

New 8K filling this morning. Link: http://biz.yahoo.com/e/071105/witm.ob8-k.html

WITS BASIN PRECIOUS MINERALS INC Files SEC form 8-K, Entry into a Material Definitive Agreement, Termination of a Mat
EDGAR Online (Mon 5:07pm)

 

Not much new, but I note the following under "Item 1.02 Termination of a Material Definitive Agreement. "

-Quote "On November 5, 2007, Registrant received a letter from Easyknit indicating Easyknit's belief that Registrant's termination of the Merger Agreement was wrongful and without merit, and demanding payment by Registrant of a $30,000,000 termination fee and an additional $500,000 to cover expenses of Easyknit relating to the merger. Registrant believes Easyknit's demand is completely without merit, and intends to vigorously defend itself against such demand, while continuing to enforce its rights and remedies in the pending legal action between the parties."

 Seems EK is not satisfied in being still.

As far as China Gold, there is a revision to share price agreement per "On October 31, 2007, Registrant entered into a letter agreement with China Gold whereby the parties amended the maturity date on each of the Notes to February 29, 2008. As additional consideration, Registrant agreed to reduce the conversion price applicable to the Notes from $1.00 to $0.50 per share and to reduce the purchase price applicable to certain purchase rights of China Gold under the Notes from $1.00 to $0.50 per share."

Guess seeing how Wits SP has spiralled down, the re-pricing might have been expected!!

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