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CWY,

If BHP did not want the technology then I would agree however the fact is BHP do need /want the technology.

As we all know BHP and APG are negotiating and the whole TIO2 industry world wide are aware. Also there are other parties interested including Cristal. ( who are complaining about being locked out)

We also see One Steel as announced and again there are more interested parties.

So, if BHP walked, sure the price would drift to say 10cents (a fair price given the current status of One Steel and Gold) but with more parties interested another deal would shortley follow.

With the announcement of another deal, an announcement in three months of One Steel moving forward and gold I would have to assume that we would be back at the current levels and more than likely higher with pending drilling results.

BUT, BHP are interested and do want the technology, so here presents a problem for them. What are they going to do?

Well, you dont need to be e=mc2 to work out that APG want to be given money at a high share price which will allow them to build a plant.

You also do not need to be too bright to work out that BHP want to move forward so they must provide enough funds for APG to do what BOTH parties want (BUILD A PLANT)...but hang on...here come those steak knives again...

what about working capital....ah...yes!

So BHP provide money for the plant and APG does a placement to Cristal or Iluka for working capital....is that it?...Ok...a plaacement to One Steel then!

MMMM...dont think so!!

BHP would need and do recognise that APG needs money for the plant and working capital to operate as a going concern.....more money!!

So...how much is BHP going to put in....I wish it was the $64 million dollar question but somehow I dont think so however I do think it needs to be inexcess of the amount needed for the plant.

So, is BHP going to put "just enough" in to build the plant and give enough working capital to get them to completion stage of the plant?....Risky...!

One Steel finishes its program in three months but BHP will have only about 4% of APG and no Directors on the Board.

That leaves the company wide open for One Steel who will be then negotiating next move with APG while BHP fiddles with a half built plant!

Its getting tricky now!

Maybe BHP needs to protect themselves from the world of mergers and aquisitions impacting on APG by taking a far larger chunk of the company.

And Will,.....so you are still alive! Where did you get the idea that a takeover now is out of the question?

With the dilema BHP has it is a possibilty and certainly an option they will/are looking at. That does not mean to say they are or will, but without doubt, their corporate dept of Mergers and aquisitions will be or have run numbers on a takeover now Vs a position now and a takeover on completion of the plant where they will pay far more per share then than now.


Decisons, decisions, decisions, but no matter which way they choose I will be smiling all the way to the bank!

And..by the way, you are entitled to your opinion even if it is wrong :)

Cheers