compare the diagram, page-5

YM, in your last post to Mitis you said:

I can see a substantial deal in the very near future on the V-ground, having again read the last announcement (I liked it). Have another look at it - It is basically spelt out: "We will drill up the resource, bring a big brother on board and get rich from the V resource"


Do you not see anything wrong with the scenario above?

YRR has forked out 130.2m shares to the inter-related private companies, which gives them 68% of YRR.

Let's read your last sentence again. " We will drill up the resource, bring a big brother on board and get rich from the V resource"

So where is the value to shareholders from giving away 68% of the V resource for free if that is where we are getting rich from?

And where is the value to GPN of having their share of the resource reduced from 70% to 20% (in fact it is more like 16% if the 220m GPN shares issued for unproven land to Apogei is included)?

It is the issues above that I have attempted to get the board to address by showing where the value is to GPN and YRR shareholders (other than those who got the free shares). They think by saying we now have a smaller piece of a larger pie will placate those that have seen their holdings severely diluted but this isn't going away unless they show absolute proof of the benefits to holders.

The pie hasn't got any bigger, they just adorned it with worthless trimmings then took most of the pie and left the trimming.

YRR shareholders have given away 130.2m shares for unproven land. So in effect we have just 32% of the Gabinintha resource and only 32% of the new tenements as well. The new holders now have 68% of Gabinintha and get to keep 68% of their land also.

Even at the current low share price they have about $15m worth of script and everyone else has $7m (including $4.5m belonging to GPN). $15m for pegging a few tenements that are unexplored as opposed to $7m for a resource of 92.5mt @ .081% V2O5, 9.81% TiO2 and 51.2% Fe2O3 plus around $2.5m in cash.

Enough said I think.