Cheers Tangrams,On the whole I concur with you, however...

Cheers Tangrams,
On the whole I concur with you, however exercising warrants in CUE would not be as straightforward as simply splitting holding between RSL & Red Rock. They would be seen to be acting "in-concert" with each other so their holding need would to be declared as such and they would still have to make an offer for the company.
However it is not really an issue as the shareholding of around 20% represents a good starting point and a strategic interest in a company with a U308 resource with value in itself. From what Andrew says, I think you can pretty much rely on the CUE shareholding and warrants finding their way into RSL sooner or later.
There is currently a fund raising underway for CUE going which Andrew suggests they want to support, so there will no doubt be more shares and more warrants out there. This could change the shareholder structure of CUE to some extent but Red Rock are likely to maintain their 20%.
Holding the warrants in CUE will not do any harm and it�s probably more a matter of choosing when to act and that will be when the market is right.
CUE�s share price is also showing signs of strengthening as the Uranium market improves. Most of these juniors are bombed out right now, but it must be recognised that CUE�s assets are particularly good quality. If the price starts to rebound on the back of an improving Uranium price and/or resource upgrade, then people will start to look at the shareholder base and the 20% strategic stake in CUE is going to come up on the radar of some bigger players.
That�s not to say that RSL would not be able to attract suitors as it develops its own projects, but its �pounds in the ground� that will count and the marriage of the two interests would enhance the value of both.
RSL will want to be able to attract a JV partner and that�s what I ultimately see. A JV partner with deep pockets, who likes the RSL & CUE assets and would take a strategic stake in the company.
This is how the Pallinghurst partnership worked with JMS in the steel-feed space and it created value all round. The company has gone from under $40m to its current market cap of $650m and the share price has almost doubled.
This is the route Andrew says he wants to take RSL down in the Uranium space and his track record should convince the market that this isn�t pie in the sky.

If the Uranium price carries on strengthening then we should see things start to come together soon enough.

MG