dilution, page-15

re: dilution - dvk13 dkv13

That's a cynical and incorrect reading I believe. The deal means that the government can pay for its 12% share of development costs and Sterling has agreed to receive a share of its royalty stream from the whole project as a long-term repayment. Sterling gets a revenue stream plus favoured status to paricipate in future developments and production. The JV gets two additional partners - the Mauritanian government and Sterling.

Its all good! And much better IMHO than say HDR selling down an equivalent amount of equity (3%) in Chinguetti to another party which would only further complicate the JV. It also makes HDR more crucial to WPL as WPL will have less than 50% and will need HDR onside.

Cheers

H