read between the lines

China Inc continues to conduct due diligence of Murchison.

Mr Martin made progress in trying to restructure Murchison's balance sheet.

Ownership of the OPR vehicle should be restructured and Jack Hills' development plan refined and capital costs cut.

Key to the OPR restructure is support from Murchison's joint venture partner Mitsubishi...has finally accepted that the financial model for the infrastructure vehicle needs to be changed from that of being a profit centre to becoming a service provider, in order to guarantee Jack Hills' viability.

Mid West miners including Jack Hills and Gindalbie Metals-AnSteel's Karara take equity stakes in OPR to align their interests.

Tariffs should drop to the low $20s per tonne of iron ore transported.

Jack Hills becomes a more viable mine development. Murchison's value, therefore, based on a half-share of an improved Jack Hills, should increase.

And that is where Mr Martin's refinancing comes into play.
Any raising will be one through a debt issue, such as a convertible note.

RCF could then end up with a potentially strategic shareholding, to be used as a launch pad for a full-blown takeover for Murchison late next year once there is certainty on Jack Hills and OPR.