strict cash preservation

There have been some enquiries( e.g. Bracchus1) about how much CFE are gonna spend for CLS and SL and I'd like to clarify that issue:

Current cash at hand : 240 M$ net ( + annual interest of approx. 15 M$) = 240 M/ 506M shares = approx. 47c/share


Estimated expenditure for Cape Lambert South
(Drilling and JORC ( 3rd quarter 09)):
--------------------------------------


9 M AUD $ , which will be fully compensated by the earned interest on the 240 M$ in the bank.

Expenditure for SL :
--------------------

4 - 5 M$ for drilling campaign in 2009 , then up to 15 M$ for a definitive feasibility study and when it was made sure that the project can be sold for a reasonable profit!!

--> otherwise full "claw back" if drilling results are unfavourable or economics ( available buyer) of the project are worsen. MCC is very interested in getting an entry into Africa, so there's likely to be a buyer.


Loan for 4-5 Junior IO explorer
( brownfield exploration):
-------------------------------


Up to 10M$ to be used as a convertible loan for around 4 junior explorers with an interest rate of around 12.5% creating an annual profit of around 1.25 M$.

In case of an insolvency of the debtor, CFE will acquire the ownership of all projects.



Conclusion:

Superb cash preservation while adding significant value through acquisitions and convertible loans, " free" Cape Lambert South drilling, minimal SL expenditure until risk-free status has been achieved.

And of course, some shocking surprises as Tony Sage mentioned them:

" One of the deals that the company is currently working on is, says Tony, “probably going to shock everyone”. Watch this space to find out what it is. "

Can't wait for the details of that deal to come out.


Cheers