News: MLX Apac Resources Says Wishes To Be Able To Buy Metals X Shares In Potential Equity Raisings, page-24

The most logical answer I can come up with is SFR (or whoever) is playing hardball in the nifty negotiations - effectively saying hand it over to us for nothing or it will blow your balance sheet up. The Hong Kong crew (APAC et al) with this announcement have effectively said - the balance sheet is supported by us so that card you thought you could play is now worthless, cough up the cash.

I think it’s a decent move knowing SFR are out of resource end of next year and need to get digging in and around Nifty/the Paterson in order to keep the bulk of their WA workforce (which is decent) employed and customers satisfied.

Either that or they are preparing the market for a cap raise when the Area5 study is released (I’ve got estimates of capex requirements around $30-$50m 100% basis over a 12-18month period for ventilation and development works).