Yep, interesting philosophy on us remaining as minority...

Yep, interesting philosophy on us remaining as minority shareholders, which we've always been. We've always been minority shareholders so we won't know any better. We've had bugger all control in management direction thus far, the future is no different.

We're reminded that WNI is now in control as the major shareholder, so what have they done? The onus is on them to now push BRM in the direction they want them to pursue in terms of progressing mining operations. The onus is now on WNI to resolve the rail issues they claimed that they could. The onus is on WNI to convince the Australian based shareholders that taking their scrip offer is beneficial to us. To date they've failed on those 3 fronts. It's not BRM management's role to do WNI's work. BRM management just have to keep progressing things to get to mining and thus far they've been ticking the boxes as required. The big railway box is WNI's to tick, so let's see if they live up to their word. It's not looking promising.

WNI's contacting shareholders makes me think that WNI's takeover of FRS is contingent on them getting total control of BRM. The other Chinese shareholders may have placed that condition before they'd accept the scrip offer. No 100% BRM no FRS shares for WNIs.

WNI's share price in HK has dropped to $1.24 HKD or 12 cents AUD. The scrip offer is now $3.60, less value than where the BRM share price is now. Hmmn, is the HK market thinking that the total takeover isn't going to happen.

Why should we accept WNI scrip offer? In the end, if they get to 90%, we have to accept it (or sell on market) anyway, so why not wait until it becomes obligatory instead of optional as it is now? They've only got 5 months to tie up all the loose ends, but it seems to be moving further away from them. What will they offer once they get more desperate - cash maybe?

Do we lose out as minority shareholders? I don't believe we do. If WNI as the major shareholder wants to make money out of the venture, they need to progress it, and we go along for the ride. Most of us were planning to hold until production in 2014, so the SP movements between now and then were largely irrelevant, given most of us won't get margin called on it should the SP drop. Can they wait until 2014 to bore us out of holding? I don't think they can, after all, they wanted total control to move things faster not slower. If the major BRM shareholder benefits, we as the minor shareholders benefit.

Can WNI afford for the BRM share price to drop much below $4? I can't see that they can. Most of their SP is based on their BRM holding, so having our SP drop will have a detrimental effect to their SP if it's prolonged. A prolonged low WNI SP might complicate the relationship with their associates.

In the end, if we're forced to accept the scrip, it's better that 90% of the other BRM shareholders have got their scrip and sold it off in the preceding months. Waiting to the last moment should mean that there won't be as many WNI shares hitting the market at once thus pushing its share price down into the sewers - from its current S or P trap location.

Anyway, my thoughts on where I see this going at the moment. It's not looking the laydown misere that WNI may have initially thought.