sp, page-5

Consider the difference in issuing shares to a JV partner vs. issuing % of project.

Option 1:
Issuing shares would dilute all our shares, the amount issued would be relevant the amount JV partner would fund (say they issue an extra 1b shares for 30% equity funding).

Option 2:
% of project, the JV partner isn't offered any shares in the company instead given a % of the project; for 30% equity funding of project its logical for it to be 30%, but 50% is being thrown around.

The difference:
Option 1 gives the JV partner a direct investment into the COMPANY who would then own about 20-30% of the company, the second option gives the JV partner ONLY a portion of the CURRENT PROJECT for its life. We as shareholders are expected for the company to expand in the future - developing new projects (with option 2, the JV partner would have no share in these, with option 1, they indirectly own that project too and will benefit).

Either way the my shares or your shares will own less of the first project regardless of issuance of new shares to partner or % of project going to them. But when new projects are developed 10 years down the track we will all benefit more without the issue of new shares to JV partner.

Hope that's easy to understand? It was difficult to try and explain.