Hey Snookerque, Project has been assigned a current status quo value of $325m. Half of which is $162.5m and so Alliance Super has given $97.5m to Fairstar as buy-in. The whole 50 / 50 profit split 80 / 20 cost split has been doing the rounds a bit, BURU Is one example with Mitsubishi. Personally I like this better than FRL easier to know what FAS should be worth 162.5m made up of $97.5m minus the fact they need to probably be lent their cost amount but pretty easy to convince when you have 60% of the costs of the project in what amounts to cold hard cash you beauty! Pretty sure even one of the big four banks would take that up.
I don't discount other options selling a small stake to off take partner but hoping not as don't want to drop below 50 / 50 or they can also discount their half of the iron ore for a forward advance from the steel mill hopefully they keep this ball rolling.
FAS Price at posting:
1.7¢ Sentiment: LT Buy Disclosure: Held
