rio - bhp jv on iron ore, page-15

Hi Wescott

Any chance of a capital raising by UMC to continue exploration drilling has gone out the window with the share price being capped.

IMO the next announcement we see from UMC will probably be a trading halt.

Why a $1 - Perhaps our equity partner will own 50% or 49.9 percent.

To go the next step we need money. Any new issue would of had to have been heavily discounted.

A new issue of 160M shares at $1 will take care of the Pre Strip costs (as per the scoping study)to see the project through to start mining. Project funding to pay for the rest.

Shares on Issue would be 320M - $1 per share earnings for the railway project. Not too bad of an outcome given the climate.

Cheers