Did Patrick Teo make a special trip over here for a photo to help delude the General Public that the Fairstar Board are actually doing something to earn their money?
One would assume that Creafin have some clout/contacts in the industry Would they be prepared to lend their name to such wanton skullduggery?
OR
Is there a possibility of something afoot and is there more to be read in this announcement than the Fairstar Board scurrying to make meaningless announcements to placate Shareholders.
In its best light "The Mandate" could be seen as a disclaimer for any action which may follow in the coming months. Fairstar have stated their position and thus washed their hands of any potential feedback which may evolve in the case of a new Asian major shareholder suddenly appearing.
There are a lot of shares changing hands at the bottom. Is this churning? Or is there a buyer who knows that if the finance is successful a 10 - 20 bagger is achievable? (.4cents to 8cents say) Has anybody seen a SH register or top 20?
20% of company + 100m shares on market = 500m shares @ 5 cents profit is $25m (assume market cap of $100m)
add a finders fee of $20m
If a deal can be done here we have an outlay of $400m to realise min $45m + interest on the loan.
A market cap of $200m or $300m would change this dramatically.
Is it possible that there is enough meat here to get someone interested?
The big question in my view is where does the loan security come from?
- Is 20% of an unknown quantity of iron ore +security over offtake agreement (10m tonnes x $80 p/t) enough to secure a punter?
Maybe there is still enough room here for a really good team to get a deal over the line. :-(
Should I be drinking this early?
Xamtac
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