kis of death

An interesting example of where these hopeful chinese announcemnts can lead.

The price of King Island Scheelilte Limited (KIS) tanked yesterday following this announcement:

"In September 2006 King Island Scheelite Ltd (KIS) announced the signing of a non binding letter of intent (LOI) with Xiamen Tungsten Corporation (XTC), the purpose of which was to investigate the potential of KIS and XTC to enter into joint venture arrangements for the re-development of the King Island mine."

"Following a lengthy period of discussion and exchange of information between KIS and XTC, a decision has been reached not to proceed with the arrangement as set out in the LOI. While the LOI contained provision for KIS to deal exclusively with XTC, this requirement expired in early January. Since then, KIS has commenced discussions with other parties. KIS will continue to progress these negotiations and anticipates that they may extend to the middle of 2007."

And this was more than an MOU, but otherwise it sounds familiar doesn't it?...giving them an exclusive etc; this was a letter of intent....so after 6 months of JRV's MOU, we could move up to a letter of intent stage and then 6 months later again end up KISing the chinese goodbye...just like pooor old KIS.