stategy to finance abu dabab - enemies around?

@ all,

for various reasons, not related to HC GIP board, I did not post here for some time.

Concerning my recent visit at London, there came up, in my mind, one important message, in some way extending the published message of GIP at the 20th of November, saying a potential investor may be part of the 20% financing of GIP (the other 80% becoming debt by the banks).

The corporate law of GIP forsees that GIP holds 100% of Tantalum International which in turns hold 50% of Tantalum Egypt, which will run the mine, together with the 50% participation of the Ägypt`s.

The investor, according to the concrete wording of JT, is supposed to join Tantalum International, not GIP itself ( eventually paying a sum worth of 15% of the 20% of the own capital for the mine financing). In other words, he will not become a shareholder of GIP. This is one advantage.

The other, even important aspect, is the fact that his participation will be negotiated between any investor and GIP, being related to the asset value of GIP as a whole and not related to the actual crasy low share price. That´s the main point. JT stated quite clearly that GIP will not sell any of his assets below reasonable value.

The long term and also the recent very good strategy of JT, plus the "accident" of Talison has brought GIP into an excellent position:

1) Newly, the german government guarantees it´s mining, both politically and commercially. As a consequence, low interest rates for the debt will be on the table.
2) Since the industry needs tantalum, may be less due to the crises, and since Talison has gone, at least for a while, when it comes to price negotiations, today GIP is in the best position ever, both regarding any investor as well as the german banks (!!).
3) GIP is on it´s way to become a most substantial (volume of tantalum) and reliable (source of tantalum versus the DRC, Kongo) industrial partner.

As all this development occurs, the share price of GIP is extremely low. Forgive me, but during these recent times I collected quite a number of GIP shares, as I already told JT in London. On my way, to become a reasonable shareholder of GIP.

Just as an aside, at the german GIP-board there is also a strong opponence regarding any GIP-investment. Of course, since competitors, like CCE, in Gernmany are strongly supported by marketing efforts. Sorry enough to say, marketing for GIP instead is nearly missing in Germany.

In any case, to me there seems to be no other explorer around, like GIP, which has such a sound basis to reach the stage fom an explorer to a miner. Even under this extraordinary financial crises!!

Congratulation to JT - he and his team made a great job!!

transmeta