Ann: Notice of Annual General Meeting , page-4

Note Resolution 4. of AGM

Approval of 10% placement of shares facility. This can only be used for :

1. cash for straight working capital, or it can be

2. "used as non-cash consideration for the acquisition of new resource assets and investments."

(If this is done Avanco must publish a valuation of the non-cash consideration as per Listing Rule 7.1A.3 The facility is only valid for a year after the AGM. )

In discussing the Vale transaction, point 8 in my post, one option I mentioned was a possible share-tenement swap with Vale, as per Xstrata and Pedra Branca.

Such a placement deal with Vale could again give Avanco a massive lift in JORC, plus whatever else goes with the tenement..... maybe a working copper processing facility?

Any Vale Deal could be "Subject to Shareholder Approval of 10% placement" (which naturally goes to Vale as part consideration).

.... not to say this is the scenario. It might just be a boring placement facility if cash gets low next year. But I smell a rat... or a BIG mouse.

But if AVB surrenders Trindade North plus 10% shareholding, it must be some HUGE asset to be worth that!!!! IF it exists, and it might just be my suspicious mind at work, its value will need to be published.

Then we have Xstrata at 15% (they are allowed to participate in placement somehow to retain a 15% holding) and Vale at around 10%. The annual office party could be interesting, but I am getting ahead of myself....

Well Well..... we live in interesting times!!! :)