requirements for funding, page-3

Constant harping on the funding of operating expenses and drilling exploration and the constant deteriorating AVB cash situation leading to an Out Of Cash Date, has finally drawn a written admission from the Company that it is "Scaling Down" (diamond) drilling exploration.

THAT is a Critical statement... how AVB is responding to cash running out. Not raising capital at prices that give away a valuable company. Fair enough. Now it is known for certain.

It is an EVIL, but the lesser of the two for sure.

Issuing shares at 5c when there is a cash-generating mine only a couple of years away would decimate/crucify AVB.

So in their shoes I would do exactly that... poke around with a bit of auger and mapping and soil sampling.. cheap stuff.. with a tightly enforced budget. Yes even adjourn to the pub in the wet season too. BUT never ever issue anyone with cheap shares at 5c just to scrounge a bit of "bridging" money. No way. So a capital raising through cheap share issuing is something that cannot be ruled out of course, BUT must now be considered unlikely in the extreme based on this company statement! Good!

In the past during the so-called GFC, Woody stepped in financially to support the company. I have no doubt that private loan capital can be raised similarly as needed, maybe $5m - $10m , to keep AVB operating and undertaking at least some exploration activity. Pay them 25% interest if needed. It doesn't matter. There is that sort money around in the right places.

AVB now has two very distinct arms.

1. Mining. This will be financed in 2 - 3 months, and be producing first quarter 2015 IMO. (after wet season ends) It is all systems go, and the way ahead is well defined. Hard work. Not much to say because it is all fairly predictable, except copper price. Then Stage 2 at PB. TN profits are understood. It is de-risked.

2. Exploration Operation. AVB has a brilliant exploration portfolio. It was going to be the copper exploration arm of Xstrata in the Carajas at one stage. It needs to be separated off from the mine construction operation and recapitalised. Otherwise a valuable asset just sits for two to three years doing not much except attract fees. A JV with Xstrata might be formed to really get stuck into these tenements and maintain the momentum, and not lose the interest of the army of geo specialists AVB seems to have, (plus Mr. X the Xstrata-guy on site). Some Dynamic corporate action and brainstorming is needed and hopefully Mr. Wood is just the experienced and driving sort of guy to kick it along. Make use of Xstrata's financial strength (without issuing cheap shares) and keep the exploration program firing hard, not languishing. Somehow hive it off from the AVB core activity which is now Mining at AN.

There is still so much exciting and rewarding exploration of AVB tenements to be done that it needs to be geared up not back!!... to go forward aggressively and that has to be DRIVEN by a top corporate manager who is motivated, who sees the forest not the trees and Directs the company.

From what I understand Woody is just the guy for that job! Hope I am right.