hawsons could be truelly massive, page-46

people on here seem to be hoping for up to a 5 billion tonne figure to be announced, yet on boardroom radio in september the MD made it pretty clear, he was hoping for 1 billion....

Hi David, CAPs main aim above all else, ever since the announcement back in April, has been to define the 1B tonnes of magnetite.


Once we have the 1Bt defined and completed the PFS, we have completed stage one of the BMG agreement:

Stage 1:
o A non refundable payment of $1.0m to Carpentaria on signing of this deal.
o BMG to pay Carpentaria a further $4.0m in cash payments and a further $8.0m for exploration and prefeasibility work, these payments will be staged over the next three months, to define up to 1 billion tonnes of inferred resource within two years and vest 40% in the project.


The next step is stage two which will see BMG pay another $25M to CAP:

Stage 2:
o On completion of Stage 1, BMG is to pay Carpentaria $25.0m and will vest 51% in the Joint Venture.


Nick reckons he'll have a JORC by December, we'll collect $25M and wait for BMG to pay for and complete the BFS (they have 2 years to do this):

Stage 3:
o BMG funds a bankable feasibility study (estimated cost $20.0m) to be completed within two years of Stage 2.
o On completion of this study BMG vests 80% when a further $23.0m is paid to Carpentaria.


So we'll collect another $23M and BMG will own 80% of the project.


Then we wait for them to dig it up and:

Carpentaria retains a 20% free carried interest up to the targeted production of 20 mtpa of iron ore concentrate. (potential earnings here will make the $81M deal look very small in comparison imo).


You'll get all this info from the original BMG announcement on 20/4/10: $81M Deal Secured for Carpentaria's 100% Owned Hawsons Iron Project

Good luck with your investing David, & always DYOR.