min of $118m cash from china giants mcap $131m

Centrex is in this month's Paydirt Magazine (p.100) - nothing new, but it does spell out the WISCO deal for those who are not familiar with Centrex.

"Centrex Chairman David Lindh said the deal (WISCO) which would result in $62 million being pumped into the coffers in the September quarter, was a vote of confidence in the 're-emergence of an invigorated iron ore industry on the Eyre Peninsula.'..."

WISCO will also SOLE FUND the first A$75m in exploration costs.

The entire deal is worth A$186m, with staged payments upon hitting of resource targets. This earns WISCO a 60% stake in the Southern and South Central magnetite deposits JV.

On top of that is the more recent news of the separate Baosteel investment of A$40m for a 50% share of the Bungalow magnetite JV.

All this, and the Australian market values CXM at $131m! As the title suggests, just the cash portion of the WISCO and Baosteel deals is worth $118m. Then add in the free $75m worth of exploration costs, and staged target payments...

This company is trading well BELOW ITS CASH AND RECEIVABLES POSITION.

And it has near-term 100% owned hematite exports through existing port facilities, just waiting on final governmental approvals.

The Chinese have invested heavily in this region, no doubt to help free themselves of the RIO/BHP duopoly. And Centrex is the 'lucky' beneficiary.

Massive price disconnect, though, between what the Chinese have paid, and the share price. FIRB approval on the WISCO deal due ANY day now...

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