Ann: Change in substantial holding from PPT, page-10

Hi MB,

I don't think you're reading the debt to BDR correctly. This is in relation to the transfer of BDR owned mining equipment and Macquarie Bank leases on additional equipment that MACA will operate on the BDR mine site.

The underlying intent of the transaction is that MACA buys BDR owned equipment and takes over the lease obligations on the balance of the equipment.

Due to tax regulations in Brazil (BDR imported the equipment tax free but has to own the equipment for a set period) the transfer of ownership needs to be delayed (to avoid tax). In the meantime the funds have been deposited into a Trust account (jointly controlled by BDR and MACA) and will be released to BDR once the equipment ownership is formalised and the lease obligations are transferred.

That is how I understand it any way.

Cheers
John