Ann: ASX BookBuild Open Date Deferred, page-16

'fairly worthless'. Well if you had spent $10k on JAC shares this was 200,000 units. In exchange for every JAC share they are going to give you 4.56 STA shares, so your 200k JAC becomes 912,000 STA. They based this on a previous valuation of $0.01 (i.e. 1 cent) per STA share. At 1c/share your $10,000 of JAC just became $9,120 of STA. The problem is that this is no longer the value of a STA share. The last sale price was $0.008 so at that price your shares are worth $7,296. But from here it gets worse - there is no market ready to buy your shares. If you dumped 912,000 shares at this very minute (assuming no other seller got in ahead of you) you would receive $3205.18 for those shares (which you originally paid $10k for). That's before you pay brokerage.

Other factors which impact this situation:
- STA has announced a capital raising (in a TH for it at present). This will certainly be at a discount to the current price. Might be @ 0.007, however I would predict 0.006.
- JAC holders have had their funds tied up for a while, probably hoping JAC would list on the ASX as they had previously indicated. Now that this is not happening there will be a bunch of holders who will sell as soon as they get their STA shares. Now obviously there will be some new buyers coming in hopefully too but I would not be at all surprised to see STA trading certainly as low as 0.004 in the short-term and quite possibly as low as 0.003 in the weeks after JAC holders get their STA shares. At 0.003 your 912k shares are worth $2,736.
- Obviously there is some value in STA. The hope is that they raise a decent sum of capital and get their Coburn project off the ground. They will also hold a lot of mineral sands ground in Tanzania. There is the chance they can do something with it - but that takes a reasonable amount of capital. I think any possible return for an ex-JAC holder will be a considerable way off.

The word worthless might have been a bit over the top but it pretty much reflects my sentiment on the matter. I had high hopes for JAC - mineral sands and graphite tenements. Now they are selling the mineral sands interests and have relinquished the graphite tenements. Our only value will be the STA shares as it seems highly likely from recent statements that they will choose to wind up the JAC shell down the track.