what to do now, page-29

Here you go fatguts a repost of what you must have missed

I have heard many excellent arguments in disagreement of the merger but what arguments are the proponents from FAS putting forward lets take a look at their weak excuses

-"GWR's tennaments are Boxed in and mining is not possible with out FAS's jigsaw piece" ???????
Straight from gwrs quarterly report "Almost the entire Joyners Find greenstone belt is held with contiguous tenements over a length of 45 kilometres" Sooooo what does that mean??? GWR has a tennament 45 km long and on average 5 km wide holding almost all off the mineralized iron units so how can they be boxed in???? Check out the tennament map for your selves peoples in GWR's last quarterly report !!!


-"The merger will save GWR from further dilution"??? ok so to check this one out first we need to see how many shares including listed and unlisted options each company has, GWR has about 105 million and FAS 150 million and how much dose each company have in the bank at the end of last quarter GWR 7.2 Million and FAS 4.6 Million. If the offer were to be accepted with only a share subscription the new company would have 675 million shares on offer!!! Ok so heres the cruxs of the matter, doesn't dilution of a company occur when more shares are issued???? meaning share holders want as few shares "out there" as possible, so the question is which will dilute the company more GWR or a merged entity???? Say they both want to raise 10 million GWR would need to create about 5 million extra shares, while the new entity hmmmm given the FAS share price will need to fall to about 40 cents once the merger has occurred, for 10 million they will need to create about 25 million shares !!!!!!!!!!!!!!!!(no one has mentioned that the share price will need to drop have they?? add the market capitals of both current companies GWR 210 mil FAS 62 mil (17/09/07) and divide by the 675 million shares, yes thats right the market capital s will stay the same it wont all of a sudden magically jump up for no reason keeping FAS at 50 cents, this values GWR's share price at $2!!!!!!!!!!!!!!!!!) So i ask the people in favour of the merger which Scenario involves more dilution???? Or even who would be getting ripped off!!!!!! and this doesn't take in to fact that FAS will most likely need to add a cash component to the offer possibly forcing them in to debt!!!

-"FAS has world class assets" sorry guys but in the business world we don't go on hearsay or assume anything dose FAS have gold, oil, uranium or even possibly iron ore maybe are they world class deposits maybe. Do we GWR share holders all want to risk our life savings on maybes if's and buts?????? Have FAS proved up anything?? All what they got is a few average drill holes!!!

-"FAS will use its cash/gold/oil/uranium to fund the development of the GWR's willuna project" What a joke!!! So how much cash does FAS have????? How will it fund its own potential gold projects for starters!!! even if they have a million ounces of gold so what!! how many other company's have a million ounces and are worth less than FAS, AAM is one example with a market capital of 20 million!! Not to mention the fact your not even allowed to mine uranium in Western Australia at present !!!! Also how long is it going to take to develop any of there projects 5 years?? Considering the average time from initial discovery to production is 10 years. Also what sought of gain can be achieved from the minuscule projects FAS has compared to Wiluna anyway. The funding needed to develop Wiluna will be massive and in no way will a minnow such as FAS be able to be fund its development.

Now that the gold and uranium has been crossed off oil hmmmm any one remember GDN who are drilling for gas. Does anything else need to be said, remember how costly each drill hole is, how long they take and what happens if nothing is found i can hear the penny falling already

So please don't try and insult our intelligence by saying the merger is good for any one apart from FAS


P.S. better luck next time!!!!