points to consider

12 month option for NKP to act...if NKP acts at all. Given the reputation of Peter Landau (RRS recent management debacle and the constant so called JV potential for RRS) and Tony Sage (CFE supposed takeover and then MCC doing a deal with Evraz...and don't forget the Delong debacle)...lets just say there is NO reputation.

This is a very badly worded announcement and Tony Sage or his PR fellas must take responsibility.

Also if NKP was going to takeover IGC using cash then they would need to raise cash... and from NKP's share price I don't think they want to issue like another 150-200 million shares to fund the takeover

If its SCRIP then they may need to do the same anyway

If you read NKP announcement Xstrata has till the end of 2009 to make a decision so there is nothing certain here either. Ok they paid $10million for the option... well lets say if the project economins does not work out Xstrata will walk away. To me Xstrata is just paying a fee to lock in a POTENTIAL project. A project that looks good today may nto be in a year time (just look at Nickel producers)

Given management track record there is more than a fair chance that all this in 3 months will drift and nothing happens.

Just my opinion