I see it as a bit of a coup by Tom Eadie. STA's only real hope...

I see it as a bit of a coup by Tom Eadie. STA's only real hope to stay as a going concern was to find a cornerstone investor. Tempo look like a solid partner to have on board and on the Board.

Considering the present investment environment for small fry in the resouce sector, this method of raising funds is smart and well planned considering the SPP is fully underwritten as well.

Shareholders were always going to be diluted sooner or later. At least this way the funds are certain to be in the STA bank account. It is now a question of whether the potential of the HMS story is worth retail shareholders taking the punt to sink more funds into this play or not?

I can't see the SP rising until feasibility studies hit the airwaves. I'm sure exploration will continue to prove up good resources. However, the results will have to be eye catching to get hot money coming into the mineral sands arena. An improvement in zircon, rutile and ilmenite prices would certainly help the mood though.

Notwithstanding, I do believe that Titanium is among the wave of new age metals that will do well over the coming years. How quickly that will be recognised by the market is the big question?

IMHO, Zircon will hold it's demand rate as per usual, but it is Titanium that should enjoy good CAGR over the next decade. Time will tell and patience might be needed with a stock like STA. One never knows with explorers though and Tom Eadie is a shrewd operator after all.

Cheers