word from anglo, page-18

There two distinct issues here:

1. the potential for Anglo/ARM to instigate court proceedings; and

2. The ability of Nkwe/Genorah to attract a JV partner.
(noting that that partner could well be Anglo/ARM)

My thoughts.

1. If ARM and/or Anglo consider their legal rights to the farms in question so strong....why have they not take any action against DMR or whomever either before of after the February 2008 agreement?

That is 4 years ago now. In that time, and indeed earlier, Nkwe/Genorah has, as a matter of fact, outlaid millions of dollars exploring and otherwise progressing these farms' ultimate development.

The equitable doctrine of laches has been applied in numerous SA jurisdictions.

2. For Anglo/ARM this is not a one off deal where the outcome is irrelevant in terms of their future dealings with the DMR and indeed the SA Government.

The Mining Right would not, in my opinion, have been granted without the necessary approval from every major player within the SA Government. Are Anglo/ARM (or even the latter on their pat) really prepared to cross the SA government (and irrespective of the fact their boss is one very rich dude)?

2. The issue of the Mining Right by the DMR may have blind sided Amglo/ARM but it can only significantly strengthen Nkwe's position both in the eyes of the law and in the eyes of potential JV partners....

JV Partners

1. W#e know there are numerous possibles - Xstrata, Anglo/ARM, the Chines, Norlisk, maybe some Indian groups etc - plenty of big boys in that group.

2. These 'big boys' are well versed in dealing with governments in all types of interesting jurisdictions - they negotiate deals with small local players and governments alike knowing the existing playing field may well change at any time.

3. Does anyone really believe that the potential of court action (by Anglo/ARM) would stop a JV partner putting their hand up on a conditional basis?

As I've said previously, a range of conditions precedent are common fare in any significant commercial agreement.

Remember, there are numerous interested parties, I'm sure groups like X are all over the potential legal issues here and will make a decision based on their own take on things..... surely better to get in first and get a foothold on the farms before a competitor....?

4. I have little doubt Xstrata would love to stick it up Anglo/ARM..... and they have the deep pockets to do it.

5. Bottom line - the 'risk' of litigation, imo, will not stop anyone entering into a JV with Nkwe/Genorah.