Ann: ARL SMM and MC to form a JV to develop KNP Goongarrie Hub, page-51

All valid points Mick and I don’t disagree at all just probably looking at it in comparison to other projects I have watched walk the same path.

1. Yes they get half of KNP but nothing else, for us to fund DFS we would have to raise 100 million most likely the sp would pull back to 50 cents so we would need to issue 200 million shares effectively basically doubling our shares on issue. Dilution across everything.

2. Yep 75% with option on the other 25% is more than I’m comfortable with, I think 50% would be fair. I can only hope the pricing is in line with going market rates and then I guess if the price is not discounted it doesn’t matter. Just can’t imagine management agreeing to give them so much without protection.

3. I think the reality as far as Kalpini sulphide project it is most likely if it got to production it would go BHP’s concentrator given the location. A JV with them would be cost affective for everyone.

Once again we can go it alone but the time and cap raise dilution can far outweigh the benefits of a good partnership especially if you are tapping into the cost and resource benefits of large corporations.


We have a clear path now and the numbers are still exceptional I think bird in the hand is worth many in the bush.