I think this is a great announcement but I am somewhat a little...

I think this is a great announcement but I am somewhat a little disapointed at the price of the placement and the lack of future project commentary.

When the stock was 15c I expected a placement in the mid twenties and then the price to rise to the 30's plus.

APG wanted to say so much more and when the announcement went to BHP for approval it was re hashed. They left in the match but took away the fireworks as they referred to their corporate policy on disclosure. I guess that is how they protect themselves.

On the positive side they are talking WORLD WIDE and more importantly the deal is based in Gross sales so this is HUGE!!!!

Gross means a % of US$550/t for tio2 and US$200/t for iron pellets......WORLD WIDE. The corridoor sands project alone to APG will be worth tens of millions of dollars pa to APG so how much will the rest of the world be worth?

Of Course that is a little further down the track and APG has indicated there are a number of BHP announcements to come over the next few months.

One may ask on what....Well, APG has allways maintained that this transaction (one just announced) is purely syn rutile based for corridoor sands. Mr T said one at a time otherwise they can be bogged down for 18 months.

Now that this is out I can only assume they will now look at other technologies (agglommeration, DRI etc) will follow.

With BHP now being the major holder of APG according to the company there are a number of media organisations wanting to interview Mr T. We have already seen the one from mining.net

It also appears they will be news on Onesteel soon and with China being the worlds hottest place for Gold the transaction they are wrapping up based on their excitement and commentary could be worth anoth 30c per share on top of current price.

In my veiw once the sellers slow down and people take their positions the 30 - 40c I referred to wont be far away.

I do not think you will see BHP increase their holding. By the time the next plant is built they would have reveiwed the other technologies and I think they will just make a straight out offer!

Lets face facts why would they pay for 20 yesars tens of millions of dollars pa to APG for the technology license for the corridoor sands then pay them more for other projects while pther companies also use the technology to compete while the steelo's fight over DRI.