To accelerate the project, it has been agreed between the...

To accelerate the project, it has been agreed between the parties that Velvogen will not itself be required to construct a coal briquette plant. Instead, Metro will supply to Velvogen by March 2010 a plant capable of processing 110 tonne/hour of high grade coal fines.

How very nice of Metro to give Velvogen a whole coal processing plant, awww, that's nice and happens all the time in business doesn't it?

It seems that a plant capable of producing about 30 Ton Per Month is around the US$300K mark so this beast that is capable of producing 30-90 Million tons per month might be worth just a little more than that. Still, all you need is good freinds in business and then just start printng money, right?

Metro Crown Group Limited (Metro) will now transfer 74% of the shares in Velvogen in consideration of the assignment of the Fortitude Minerals Limited loan note of US$10,172,807. The loan note has been fully impaired in the accounts of CityView and the assignment is to be effective on February 1, 2010.

So, let's recap, CVI get to own a coal plant for nothing by providing a worthless $10M note of debt from a company that owes CVI $10M. CVI have no chance of collecting the $10M as it is gone, written off in CVI accounts just 6 months after lending it. Metro will take this worthless note as 74% of the required payment to buy Velvogen and as an added bonus, Metro will give for free, gratis, one of the largest coal briquette processing plants in the world.

It all sounds totally believable doesn't it? After all, this is just a normal deal in the high stakes world of fuel production. Everything is free and easy in this market because everyone is just such darned good freinds.

I might just start one up myself, sure looks easy.