Paul Sundstrom is part of the rescue group helping to get the Boulder Steel project out of administration and into the community’s hands.
Paul Sundstrom is part of the rescue group helping to get the Boulder Steel project out of administration and into the community’s hands. Luka Kauzlaric

Boulder rescue project ready for benefactors’ help

BOULDER Steel's rescue group is now in a position to start accepting contributions from those who want to see the $4.4 billion project become a reality in Gladstone.

The group's co-ordinator Paul Sundstrom said for the project to get off the ground "we, the people who are concerned about the project, need to move very quickly now".

The Deed of Company Arrangement, if voted in based on the contributions received, means "we" will gain control of Boulder Steel Ltd and enable the company to complete the critical environmental impact study and hopefully go on to realise the project.

"It has turned out to be mission impossible to open a suitable trust account in the very limited time we have left," he said.

"I was hoping to avoid handling any of the monies, for all the right reasons, but this is now not possible."

Mr Sundstrom said contributors would be allocated Class 1 shares at one cent, so a contributor of $100 would receive 10,000 shares.

He said the chances of the project proceeding varied between 50 and 70%, depending on the amount raised, and, if the project proceeded, the shares could be expected to be worth between 5 and 15 cents.

Mr Sundstrom said the share value would be underpinned by Boulder's "free carry", meaning equity in the project that Boulder would own, but would be paid for by others.

"So this is a very good investment opportunity in its own right, but contributors should be mindful that the 50-70% chance of success means there is a 30-50% chance of failure where some, or all, of the money will be lost," he said.

"If our DoCA is not successful, and another DoCA is voted in by the creditors, then all monies, apart from a smaller non-refundable portion (required by the administrator), will be returned to the contributors.

"I would not want to see anyone hurt by this, and would urge that people/organisations only contribute what they can comfortably afford, and anyone is welcome to audit the account at any time."

RESCUE FUND:

Minimum contributions of $100 to the Boulder Steel rescue fund can be sent to:

Dedicated account name: Paul Sundstrom, BSB: 064705, Account number: 10432061

International contributions SWIFT code: CTBAAU2S

No cheques or money orders. Please ensure the full name, address and contact phone number of the person (or organisation) who will be the shareholder is included.

For more details, Paul Sundstrom invites contributors to contact him on taseng@hotkey.net.au or 4979 0200.



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