Lets be realistic here...to set up a producing mine takes capital..
The process they are going through at the moment is an entirely normal step towards production...
The returns that a producing mine of this size will generate will be large.
Lets see the terms of this arrangement first...if they are going to issue additional shares given that the current economic conditions have improved substantially...the discount should be very minimal...also lets not forget there could be a benefit to existing shareholders through purchasing discounted shares..
I wouldnt be surprised if we have an interest from the larger companies such as BHP,FMG,RIO wanting to provide capital..
FMS Price at posting:
17.2¢ Sentiment: Buy Disclosure: Held
