hillgrove goes it alone on kanmantoo project, page-46

Hi Yaqona,

I believe it was not a secret that HGO has dressed its ESG shares up for sale, and I believe there were quote a few bidders for that. However, no bidder would be ready to pay the price that DA asked for - way above $1 ps.

I also believe that the unusual - I think it's quite innovative - top-up clause is the deal maker. (Don't know who had this brilliant idea - was it from HGO, STO or ESG? time will tell.)

The 18 months timeframe for the top-up might be the hot bargaining topic. I guess there must be a shared understanding between HGO and STO that the 18 months would be enough to play out the T/O games - either STO itself becomes a takeover target, or it will make a move to takeover ESG. Either ESG or STO would become history within 18 months.

In the former case, the big guy who takes over STO might also takes-over ESG, or it would consolidate its ESG assest with a third party.

Personally I strongly believe that a takeover will happen soon after the reserve upgrade, but not necessaily started by STO.

B.