hope this does not happen to us, page-3

wow JY is one class CEO

Just re read the whole thing -- unless i am reading this all wrong we arent going to get a share dilution.

The are going to lease equi. Just goes to show having real director leading this company can be good.

The New Directors have proposed the development of Molyhil using the Build Own Operate and Transfer (“BOOT”) strategy. Each of the New
Directors has production based experience and is well acquainted with operating in the Northern Territory environment.
Proposals for the development of Molyhil
The New Directors believe that a BOOT strategy will deliver a better economic result for shareholders from Molyhil. This strategy will initially focus
on:
Capital Cost - The intention would be to reduce the capital cost substantially in order to reduce both shareholder dilution and bankers requirement to
hedge production. This would be achieved by a combination of the following.
Mining equipment - Mining activities should be carried out on a contract basis rather than via a philosophy of directly purchasing mining equipment
& employing mining operators.
Power supply - There are a number providers of power facilities to the Australian mining industry, most of whom provide & operate the service at a
contracted rate per unit.
file:///N|/Board/Announcements/FY%202008/Final/RNS%20Announcement%20WDR%20Acq%20Sub%20shareholding%20in%20thor.htm (5 of 7)30/04/2008 7:39:20 AM
Preliminary Results year ended 31 May 1999
Mineral processing plant – The New Directors are in discussion with an existing contract operator of mineral processing plants in Australia with the
objective of that they will construct and operate the plant at Molyhil on a build/own/operate (“BOO”) basis. Capital savings from this approach could
be significant and the New Directors believe that an experienced processing plant contract operator will also reduce manpower during the production
stage.
Civil construction - A significant portion of the capital cost of a mining project comes from civil construction costs. These include road and airstrip
upgrades, processing plant earthworks and concrete footings. Much of this work will be a direct capital cost to the project and will be financed by
Thor. Norman Gardiner has substantial experience in this field and the New Directors believe significant savings could be made from the current
estimates for civil construction.
Prospects
The New Directors will pursue the following prospects to enhance shareholder value:
Underground potential – The New Directors believe it is possible to extend the Molyhil resource at depth and will accelerate efforts to better define
this and plan for a subsequent underground mining phase. The current mining plan leaves a substantial portion of the resource in the ground, and
the New Directors are prepared to contemplate underground mining to exploit this resource
Introduction of other projects – The New Directors objective is for Thor to have a life well beyond that of the Molyhil mine. They will actively seek
opportunities for Tungsten and or Molybdenum projects, in Australia and elsewhere, including, but not restricted to, early exploration and evaluation
of the Hatches Creek tungsten project.
The Directors believe today’s developments advance the development of Molyhil which has been a prime motivation for the Board since it was listed
on AIM in 2005. The Directors are aware of the dilutive effect of a major equity or convertible equity fund raising on existing shareholders and
believe that WDR’s proposals and the New Directors’ practical experience offer a more attractive option which will benefit all shareholders.