china and mid west, page-7

Neil, I don't particularly trust management despite all the board changes. They have yet to achieve anything other than give certain people a chance to make a fortune from the unlisted options. Just as the former board dragged their feet getting results out, so too this crew. Talk of supposedly good gold results was all crap a couple of years ago but allowed the shysters to offload their free shares ahead of the long awaited and ultimately disappointing announcement.

This time round it is about the fe potential, which has a strong possibility of being the real deal. GPN stood for Greater Pacific Gold, so a name change was required to reflect a change of direction to iron ore, even though some of the drill samples from the Narracoota area will be au tested. The tenements are situated in the Mount Padbury area, hence the new name.

Is it coincidence that AGU management have now decided to give cheap shares and options to the sophisticated investors whilst the AGU sp is weak?. The same thing happened with PDY prior to announcing the commencement of drilling. As AGU hold 30% of the fe potential through their j/v with PDY, it appears as though results won't be available until all the corporate games are over. AGU have issued 13.55m of the shares already, up to the maximum 15% placement capacity of the company and now require shareholder approval for the rest to be issued. This will be a mere formality having also given PDY 35m shares recently. So they could announce results anytime they wish knowing they have secured the rest of the cheap shares for sophisticated investors already. It mightn't look too good if they were to release great results and the sp went up to say 8 or 10c before giving away another 143m shares in the company at 2cps.

AGU management plan to increase the shares on issue by around 80% for just $278k upfront and another $2.85m, so just over $3m which is close to the amount of cash held by AGU at present (if they hadn't lent $500k to an undisclosed entity). So they raise unrequired money at almost giveaway prices just before results are due.

It is interesting to note that AGU has lent $500k to an undisclosed entity and PDY received $214k upfront for the unlisted options and AGU has received $271k for 15% of the placement and another $7k for the upfront payment on 70m partly paid shares @ 2c. That's $492k returned to the companies in cash upfront for the deals and $500k outlayed by AGU to an undisclosed entity. Not suggesting anything, just thought I would point this out. Hard to justify the deals as being about needing urgent cash before drill results are released.

I reckon buying AGU at current prices may be worthwhile as the soph investors are getting heaps at .02 so it would seem to indicate results will be ok. But of course management don't know what the results are yet.