image and iluka deal

Hi,

Been told about Image from my broker as a stock to keep on the watchlist.

Just want some feedback from others that know Image Resources better than I do.

Image is purchasing tenements from Iluka for $190,000 cash and 1.2million image shares. I take it that if Iluka was either to be a partner with Image or takeover Image shouldn't they be wanting a position in Image like a strategic placement. I read the announcement as "Iluka has tenements which they don't want and are more than happy to sell it off". Taking the share price at 60cents the 4 tenements yielded Iluka just $910,000 in value. Surely Iluka would have a spare few million to drill if they think that these 4 tenements have value.

I take this news as "Iluka is now out of the picture in regards to a JV or takeover and that Image would have to look to develop this themself". If this is true then why has Iluka taken this position.

Image seems to be in a stage where they just want to build up a resource base and hopefully someone would come in and help them to mine the stuff. In the announcement it also stated that "Image is seeking a Development Manager/Director to commercialise and develop its North Perth Basin HM assets" which is a sign that they have to go it alone.

While some may say "Image is going to develop this" but reading the announcement today I take the picture that Iluka has reached the conclusion that Image Resources tenements are not worth developing and "hey we will even sell you our tenements that are next to yours for less than $1million".

I read this as a negative announcement not a positive one. If someone would point out other facts then I am happy to listen and discuss.