ASI are backed by a rich chinese businessman who appears in the forbes rich list (in other words a billionairre).
John Hillam couldnt even afford to settle his own finances with his own money, had to "borrow" $3k (from memory) from the companys piggy bank.
I know which party the business world would consider to have the greater credibility.
Question is: Will ASI let BMG sink and probably lose their estimated $15 million investment just to spite Hillam? If BMG go bust that would to my understanding trigger a default with CAP & CAP are then free to negotiate with other parties.
The court documents earlier in the year showed BMG were in a dire financial position and on the brink of insolvency then. Someone thus far is keeping it alive and unless its Hillam selling his personal belongings to do so, id be guessing its ASI keeping BMG on life support.
I also dont believe it will be possible to market BMG for an IPO (float on the stock exchange) whilst Hillam is CEO or probably even on the board! When a CEO takes the kind of action that Hillam has done, mud sticks and i believe his chances of attracting new investors would be close to zero?
My best guess if that CAP's PFS will reveal reasonably low start up costs, the most expensive items will be 30kms of rail, a processing plant and power to the site....suspect plan will initially be for magnetite to be transported to Port Pirie and "barged" out to deeper water and onto a container ship. This should make the project look appealling for ASI who can then approve payment to CAP by increasing their stake in BMG and remove Hillam, appoint a reputable board and begin marketing BMG for an IPO. I do not believe any party want delays at Hawsons, the project is worth many billions and everyone seems to want to be in production asap.
Longer term as cashflow rolls in the partners will be looking at things like a slurry pipe or even building another port!
CAP Price at posting:
65.4¢ Sentiment: Buy Disclosure: Held
