"Seems to me that GT has laid his on the front line and C-note...

"Seems to me that GT has laid his on the front line and C-note at 42c fixed to AUD/USD rate under the circumstances is a lifeline" ???

When his con note comes due Dec 2009 if the share price is less than 42c he will ask for the cash rather than convert. The cash will not be available so some VWAP formula at existing price or other deal will be cut. The market is starting to wake up to the fact that the con note strike price is meaningless if there is no mechanism to get the share price over that hurdle. With AUD$85M of con notes outstanding and more debt required to go on C&M etc expect conversion at sub 10c, leaving over 1 billion shares on issue at 10c and a market cap still an over valued $100M.

HNC takeover is the only way share price will rise above 42c. However, I have a better idea for them. Buy the con notes from Cornell for cash, end up with >60% of the company when they convert sub 10c and just never make a takeover. Re-capitalise with a low pitched rights issue not taken up by many then crunch the shares 10:1 and end up with 75% share control ... presto! GT can be left cray potted like the rest of you to ensure HNC have some local holdings and know-how motivated to keep the approvals process etc moving in the right direction. The AII modus operandi as Oly says.

So many ugly ways this can end up for the mug punter other than a quick and profitable takeover. Will the Sulphides process be configgered to maximise profits for the CMR operation or for the HNC Chinese operation I wonder? HNC hold all the cards, GT is playing for himself as always and Cornell just want their money back. It really does come down to whether HNC want to play hard ball or have a benevolent streak. Could go either way of course, hope breeds eternal, but so many better bets out there IMO.

goodluck