MSFCorrect me if i'm wrong but my understanding is that the...

MSF

Correct me if i'm wrong but my understanding is that the Corporations Act allows EXT to issue up to 15% new shares without requiring shareholder approval - ref link below.

i.e. Kepco would NOT have to buy any shares on market and would not require KAH or RIO approval.

Kepco are no doubt aware of this and could potentially offer to fund a portion of development costs plus an offtake agreement in exchange for 15%. e.g. say US$500 in exchange for 15% would equate to an EXT valuation of almost A$4b.

This would no doubt lead to a rerating of EXT's share price and really put the pressure on RIO. Also, both RIO and KAH would need to buy shares on market to avoid dilution - time is running out for RIO.

http://www.fido.gov.au/fido/fido.nsf/byheadline/Share+placements+and+the+retail+shareholder?openDocument