curioser and curioser

To the GIP aficionados:

On a recent announcement by GIP, dated Feb 9 2004, referring to its proposed AIM listing and further capital raisings I read the following, somewhat puzzling, statement:

“The primary purpose of this proposed funding is to further these development initiatives AS WELL AS TO ENSURE FINANCIAL COMMITMENTS TO BE GIVEN BY THE COMPANY IN RELATION TO COMPLETING ITS BANKABLE FEASIBILITY STUDY CAN BE DELIVERED.”

What does this mean?

GIP, after all, has gone to the market several times raising around $1.5 -$2 million, ostensibly to fund its BFS, and they also gave Lycopodium 1 million shares to complete the BFS.

Is GIP saying that the BFS has skyrocketed in cost so much that GIP currently does not have sufficient funds to complete the BFS despite the capital raisings and the shares given to Lycopodium?

The announcements by GIP initially indicated the cost was expected to be $350,000.

GIP also said that “the cash cost to Gippsland shall only be $230,000 since a fundamental provision of the agreement with Lycopodium is that Lycopodium shall receive 1,000,000 Gippsland ordinary shares issued at 12 cents each in payment of the first $120,000 expended on the BFS.”

So what is going on?

Is Lycopodium putting its foot down and demanding more loot?

Is there a barney brewing between GIP and Lycopodium?

Do the Egyptians want more "Consultancy Fees"

Is this a strategy to keep the arrival of the BFS stretching into the never-never?

Who knows?

Who cares?

As I said; Curioser and Curioser…

Tachion