Trek Metals : Scheme Implementation agreement with Edge Minerals Ltd

For personal use only

TREK METALS LIMITED ARBN 124 462 826 (Trek)

and

EDGE MINERALS LIMITED ACN 126 632 899 (Edge)

SCHEME IMPLEMENTATION AGREEMENT

For personal use only

TABLE OF CONTENTS

1.	DEFINITIONS AND INTERPRETATION .........................................................................	1
	1.1	Definitions ......................................................................................................	1
	1.2	Interpretation ..............................................................................................	10
2.	AGREEMENT TO PROPOSE SCHEME AND IMPLEMENT SCHEME ............................	11
	2.1	Edge to propose Scheme .........................................................................	11
	2.2	Trek to assist with Scheme .........................................................................	11
	2.3	Agreement to implement Scheme..........................................................	12
3.	CONDITIONS PRECEDENT.......................................................................................	12
	3.1	Conditions Precedent................................................................................	12
	3.2	Benefit of certain Conditions Precedent.................................................	12
	3.3	Waiver of Conditions Precedent ..............................................................	12
	3.4	Reasonable endeavours ...........................................................................	12
	3.5	Regulatory matters.....................................................................................	13
	3.6	Notices in relation to Conditions Precedent...........................................	13
	3.7	Effect of waiver or non-fulfilment .............................................................	14
	3.8	Consultation on failure of Condition Precedents...................................	14
	3.9	Failure to agree...........................................................................................	14
	3.10	Regulatory Approval..................................................................................	15
	3.11	Certificate....................................................................................................	15
4.	OUTLINE OF SCHEME..............................................................................................	15
	4.1	Scheme........................................................................................................	15
	4.2	Scheme Consideration ..............................................................................	15
	4.3	No amendments to Scheme without consent .......................................	16
	4.4	Small Shareholders .....................................................................................	16
5.	CO-OPERATION AND TIMING................................................................................	16
	5.1	General obligations....................................................................................	16
	5.2	Transaction Implementation Committee................................................	16
	5.3	Trek Access..................................................................................................	17
	5.4	Edge Access ...............................................................................................	17
	5.5	Trek's right to separate representation....................................................	18
6.	IMPLEMENTATION OBLIGATIONS OF THE PARTIES .................................................	18
	6.1	Edge's obligations.......................................................................................	18
	6.2	Trek's obligations.........................................................................................	18
	6.3	Recommendation ......................................................................................	18
	6.4	Exclusion from Recommendation ............................................................	18
7.	SCHEME BOOKLET ..................................................................................................	19
	7.1	Preparation..................................................................................................	19
	7.2	Content of Scheme Booklet......................................................................	20
	7.3	Trek Information ..........................................................................................	21
	7.4	Scheme Booklet responsibility statements ..............................................	21
	7.5	Disagreement on content.........................................................................	21
	7.6	Verification ..................................................................................................	22
8.	CONDUCT OF BUSINESS.........................................................................................	22
	8.1	Conduct of Edge's business......................................................................	22
	8.2	Conduct of Trek's business ........................................................................	22
	8.3	Appointment and retirement of Edge Directors ....................................	23
	8.4	Edge Prohibited actions ............................................................................	23

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	8.5	Trek Prohibited actions...............................................................................	24
9.	EXCLUSIVITY ...........................................................................................................	24
	9.1	No existing discussions................................................................................	24
	9.2	No-shop........................................................................................................	25
	9.3	No-talk..........................................................................................................	25
	9.4	Due diligence information ........................................................................	25
	9.5	Notice of unsolicited approach ...............................................................	26
	9.6	Exceptions ...................................................................................................	26
	9.7	Trek Matching Right....................................................................................	26
	9.8	Legal advice ...............................................................................................	27
10.	REIMBURSEMENT OF COSTS ...................................................................................	27
	10.1	Background.................................................................................................	27
	10.2	Payment by Edge to Trek ..........................................................................	27
	10.3	Payment by Trek to Edge ..........................................................................	29
	10.4	No amount payable if Scheme becomes Effective..............................	30
	10.5	Timing of payment......................................................................................	30
	10.6	Nature of payment.....................................................................................	30
	10.7	Survival .........................................................................................................	31
11.	REPRESENTATIONS AND WARRANTIES ...................................................................	31
	11.1	Edge's representations and warranties ...................................................	31
	11.2	Edge's indemnity ........................................................................................	31
	11.3	Edge warranty certificate .........................................................................	31
	11.4	Qualifications to Edge's representations and warranties .....................	31
	11.5	Trek's representations and warranties .....................................................	31
	11.6	Trek's indemnity ..........................................................................................	31
	11.7	Trek warranty certificate............................................................................	32
	11.8	Qualifications to Trek's representations and warranties........................	32
	11.9	Liability of directors and officers...............................................................	32
12.	COURT PROCEEDINGS ...........................................................................................	32
	12.1	Appeal process...........................................................................................	32
	12.2	Defence of proceedings...........................................................................	33
	12.3	Costs.............................................................................................................	33
13.	TERMINATION .........................................................................................................	33
	13.1	Termination events .....................................................................................	33
	13.2	Termination..................................................................................................	34
	13.3	Effect of termination ..................................................................................	34
	13.4	Damages .....................................................................................................	34
14.	PUBLIC ANNOUNCEMENTS ....................................................................................	35
	14.1	Public announcement of Scheme...........................................................	35
	14.2	No announcement.....................................................................................	35
	14.3	Notice of announcement .........................................................................	35
	14.4	Alternative or Superior Proposal ...............................................................	35
	14.5	Termination of this agreement..................................................................	36
15.	CONFIDENTIAL INFORMATION ..............................................................................	36
	15.1	Disclosure of Trek Confidential Information.............................................	36
	15.2	Use of Trek Confidential Information........................................................	36
	15.3	Disclosure of Edge Confidential Information ..........................................	36
	15.4	Use of Edge Confidential Information .....................................................	36
	15.5	Disclosure by recipient of Confidential Information ..............................	37
	15.6	Excluded Information.................................................................................	37
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	15.7	Termination..................................................................................................	37
16.	NOTICES AND OTHER COMMUNICATIONS ...........................................................	37
	16.1	Form - all communications........................................................................	37
	16.2	Initial address and details..........................................................................	37
	16.3	Form - communications sent by email ....................................................	37
	16.4	Delivery ........................................................................................................	38
	16.5	When taken to be received......................................................................	38
17.	GOODS AND SERVICES TAX (GST) ........................................................................	38
	17.1	Consideration GST exclusive .....................................................................	38
	17.2	Payment of GST ..........................................................................................	39
	17.3	Reimbursements .........................................................................................	39
	17.4	Calculation of payments...........................................................................	39
	17.5	Interpretation ..............................................................................................	39
18.	MISCELLANEOUS ....................................................................................................	40
	18.1	Discretion in exercising rights ....................................................................	40
	18.2	Partial exercising of rights ..........................................................................	40
	18.3	No liability for loss........................................................................................	40
	18.4	Approvals and consents............................................................................	40
	18.5	Conflict of interest ......................................................................................	40
	18.6	Remedies cumulative ................................................................................	40
	18.7	Variation and waiver .................................................................................	40
	18.8	No merger ...................................................................................................	40
	18.9	Indemnities ..................................................................................................	40
	18.10	Enforceability ..............................................................................................	40
	18.11	Further steps ................................................................................................	41
	18.12	Construction................................................................................................	41
	18.13	Costs.............................................................................................................	41
	18.14	Entire agreement........................................................................................	41
	18.15	Assignment ..................................................................................................	41
	18.16	No representation or reliance...................................................................	41
	18.17	Governing law ............................................................................................	42
	18.18	Counterparts ...............................................................................................	42
SCHEDULE 1 - EDGE PRESCRIBED EVENTS............................................................................	43
SCHEDULE 2 - TREK PRESCRIBED EVENTS .............................................................................	45
SCHEDULE 3 - CONDITIONS PRECEDENT (CLAUSE 3.1) .......................................................	47
SCHEDULE 4 - TIMETABLE (CLAUSE 5.1) ...............................................................................	50
SCHEDULE 5 - EDGE'S OBLIGATIONS (CLAUSE 6.1).............................................................	51
SCHEDULE 6 - TREK'S OBLIGATIONS (CLAUSE 6.2) ..............................................................	54
SCHEDULE 7 - EDGE'S REPRESENTATIONS AND WARRANTIES (CLAUSE 11.1) .....................	55
SCHEDULE 8 - TREK'S REPRESENTATIONS AND WARRANTIES (CLAUSE 11.5).......................	59
SCHEDULE 10 - EDGE MATERIAL PERMITS ............................................................................	63
SCHEDULE 11 - TREK MATERIAL PERMITS..............................................................................	64
ANNEXURE A - ANNOUNCEMENT (CLAUSE 14.1) ...............................................................	67

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ANNEXURE B - SCHEME OF ARRANGEMENT AND DEED POLL ............................................

68

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