xstrata to buy into roseby copper

Xstrata buying into the Roseby Copper Project (RCP)interests has already occurred so far via:

* 30,000,000 shareholding via subsidiary (Mt Isa Mines)
* SEEP Option on underlying RCP resources ($15M commitment)
* Option to purchase (Non SEEP) RCP resources
* Rights to refine/sell copper concentrate (from Nov 2008)

Given the initial SEEP drilling results are OUTSTANDING with 94m of high grade copper sulphide ore, its pretty clear that Xstrata WILL exercise its options to get 51% of RCP (SEEP and Non SEEP) - its just a matter of when.

Perhaps paradoxically, the current financial crisis and associated fall in copper futures conditions are FAVOURABLE for Xstrata to do a deal SOONER THAN LATER (when the copper price curve recovers by late 2009/early 2010).

Another factor that favours Xstrata taking up it RCP options SOONER is to preserve its relative equity holding from potentially dramatic dilution from the effects of the Notes Conversion mid-2009.

However, given that SEEP remains mostly unmeasured, a pragmatic solution would be for them to do a deal to buy for cash Roseby Copper Pty Ltd (which owns 50% of RC resources) in consideration for the proved resources, with equitable adjustments/cash paid on or before the Options expiry date in 2012.

Xstrata have also recently pulled out of a huge $12B takeover of Lonmin, and have stated that they will now focus on ORGANIC GROWTH.

Taking these factors into account means that URL should not give up hope on their stock, but use their vote at the AGM to make the incumbent Board held accountable for their inactions and failings over many years.

URL Board: Get READY TO GO!