a great coup!, page-42

Wantedman,

Take a look at the terms of the first put option in the NST HOA.

"the first put option will grant Tanami the right to sell 15% of the CTP for A$20 million in cash or NST Shares (valued at the five day VWAP prior to exercise of the first put option) at Tanami’s election, at any time up to the earlier of 30 calendar days following achievement of Commercial Production or three years after Completion. If Commercial Production is achieved more than three years after Completion Tanami may exercise this option at any time up to 30 calendar days following achievement of Commercial Production; and"

OK. First you have the word Completion. Well that could be delayed while the dispute between the competing companies is resolved.

Next, one of the sides involved in drafting the NST/TAM HOA is not confident in Commercial Production before 3 years otherwise they would not have imposed the 3 year time frame into the agreement. Keep your telescopes handy.

This deal is more spin than grin.

THIS IS THE ONE VERY IMPORTANT QUESTION EVERY NST AND MLX SHAREHOLDER SHOULD BE ASKING THEMSELVES

You all seem to be investing in NST & MLX because you believe the companies have growth potential and are currently generating bundles of cash. So if you are right the share price in the future is going to be higher than it is now, right.

So why are NST and MLX partly paying for this project using shares and also offering shares as an alternative to cash in the future.

If I was a director of either company I would recognise that I had adequate cash to pay for the full up front cost of entering the deal with TAM and would not offer shares as a part alternative to fund the deal. Why on earth, if I had the cash, would I give shares away now if I believed that those shares were going to be far more valuable in the future? Answer: I either can't presently afford the full up front cost of the deal in cash or I don't believe the value of my company's shares will be greater in the future or I never grew out of the narrow mind set and way of doing business of an ASX tiddler exploration company. Maybe you should be rethinking how much cash these companies are presently generating or the way the directors of these companies plan to grow. There is no point in seeing the market cap of a company growing if the share price doesn't.

Don't worry if anyone is interested I can provide the stock codes of two ASX gold companies with large liquid cash reserves that can't find any better investment opportunity in the market than buying back their own shares.

Eshmun