acquires rio's 20%, page-39

Definitely an interesting development!

One could ask...did Rio want out or did OXR want Rio out??

Rio had a clause whereby they were able to claw back in if the resource became big enough for them to warrant it.
Conversely there is no doubt that major companies like to control their own destinies. It would be most frustrating for Rio not to control the operations or decision making of Sepon.

From the report out it could be read that OXR may have felt handcuffed...and perhaps RIO were frustrated by their lack of control.

I believe it is a huge positive that OXR are buying the RIO percentage rather than it being sold off to a third party. It would seem that the OX is very confident in what they have.

I find comfort in the fact that the underwriting brokers are muscle brokers (Goldman Sachs, JB Were, and Macquarie). These guys are unlikely to get involved unless they believe..but then again why three of them?

With regard to the likelihood of a selloff of the stock, this normally happens to a degree (though will be far less than with a placement). Current shareholders can sell their rights if they are not in a position to buy the new shares. This put money in the pocket whilst maintaining existing shares. It also alleviates tax issues associated with selling existing shares (a real issue with OXR, as almost all shareholders have bought below current prices).

From my point of view.. I have held OXR for 5 years, and will do so for several yet and will but the new ones.



dodds