takeover and aquisitions , page-9

Ht- Lets hope TB doesnt get the Magnessan yips and this time goes for a full TO of RXM.

When Burgess grabbed 20% of Sandfire the shareprice went through the roof with all the punters looking for the likely full TO. This was a stupid ploy because now SFR is too expensive.

With a MC of only $137 mill plus a 30% TO premium the likely price would be around $178 mill. which is easily within our budget.

The Hillside project in SA is hugely attractive-

(1) its an open pit scenario - big C1 savings compared to underground.

(2) the resource stands at (with more drilling upside to come)-

2MT of copper (Carrapateena 2.6MT)
1.7 MOZ of gold
44mt of iron ore.

(3) they have $70mill in the bank

(4) its 100% owned by REX

(5) its in SA (OZL,s playground)

(6) the cost to bring it to production including the BFS is going to be less than Carrapateena (they already have $70 mill in the bank.

(7) its in Aus - not some far off high cost Romanian dinosuar.

We have been waiting for a distressed miner that fits our criteria-

So TB don't blow this one (please)