iron ore project, page-2

Hi Cashew

Can't see how this deal could possibly be passed by shareholders just on the face of the deal as presented.

By taking up the option Rand issue RCL 96M shares and 96M options. Rand currently have 60M shares on issue, therefore control is immediatly passed to RCL who would control Rand with 62% of the company BEFORE the options are converted.

If the company has any degree of success with exploration then the ownership of existing shareholders could be reduced/diluted to 7%.

Plus RND have to hand over 8M TBR shares valued at about $24M.

There are no drill results, we don't know anything about RCL other than it being a "director related" company, we know nothing about how the project has been valued to determine the option valuation, we don't know who is doing the work and what it will cost to get off the ground......

A cynic would think this has nothing to do with an iron ore project........certainly not an IO project for the benefit of Rand shareholders............would be pretty good if you owned RCL though.

Rand have to pay $24M for the honour of giving the company to someone else........makes no sense.

W