Well this looks bad for ARH as Palmer plans not to spend a...

Well this looks bad for ARH as Palmer plans not to spend a dollar on the Iron project in WA.

Overall I be surprised if he even gets the coal bit away, the ResourceHouse deal way way to good for Palmer and no upside for the equity holders in ResourceHouse.

It would be an interesting to be a fly during the board meeting tomorrow...

http://uk.finance.yahoo.com/news/UPDATE-2-Resourcehouse-targetukfocus-875793139.html?x=0

UPDATE 2-Resourcehouse slashes HK IPO price as markets falter
targetukfocus



* Resourcehouse to raise up to $2.54 bln vs up to $3.6 bln

* To use all funds for thermal coal project

* Resourcehouse seeks additional funding for iron ore project (Adds IPO price cut, new launch, changes to funding plans)

HONG KONG, June 3 (Reuters) - Startup mining company Resourcehouse, controlled by billionaire Clive Palmer, slashed the price for its Hong Kong IPO by up to 30 percent after investors balked at paying top dollar to develop its Australian coal and iron ore projects.

Resourcehouse Ltd cut the proposed price to HK$3.45 per share from a previous indicative range of HK$4.48 to HK4.93, according to a term sheet for the deal seen by Reuters on Friday. The change reflects "investor feedback and overall market conditions" the term sheet said.

Concerns about higher interest rates in China, debt troubles in Europe (Chicago Options: ^REURTRUSD - news) and a possible sovereign downgrade in the United States have roiled global markets, pushing commodity prices sharply lower in recent weeks.

"Overall market conditions are not favourable," said Alfred Chan, executive director at Cheer Pearl Investment. "So they have to be realistic."

Resourcehouse, which is raising funds to develop a thermal coal project in Queensland and an iron ore project in Western Australia, was set to launch the IPO on Thursday last week but delayed it by four days without giving an explanation.

The company postponed a roadshow in March, citing unfavorable market conditions, after previous attempts in 2009 and 2010 to go public. [ID:nLDE74F1L0] [ID:nTOE72A03M]

Palmer said on Sunday that the company had received a "very good response" from investors in the United States and Europe and had no plans to change the IPO terms or cut the offering, despite volatility in global commodity prices. [ID:nL3E7GQ081]

Glencore , the world's largest commodities trader, has largely traded below its IPO price since going public in Hong Kong and London with a $10 billion deal last month.

The IPO would raise as much as $2.54 billion, compared with up to $3.6 billion previously. As a result, Resourcehouse aims to use all the funds to develop its China First Coal Project in central Queensland in Australia, with output capacity targeted at 40 million tons a year.

The company is looking for alternatives to finance its China First Iron Ore project, including raising more funds from debt, attracting strategic equity investments and asking for upfront payment on ore deliveries.

Resourcehouse originally planned to use 22 percent of the IPO proceeds for the iron ore project.

The company was unable to cover the retail and institutional books for the IPO at the initial price range and considered lowering the price or withdrawing the planned listing, Ming Pao newspaper said, citing no sources for the information.

Resourcehouse declined to comment on the IPO price cut, a spokesman for the company said when contacted by Reuters. (Editing by Ken Wills and Lincoln Feast)