Smithy, what they are doing is setting up a JV Company I believe...

Smithy, what they are doing is setting up a JV Company I believe with the Major, for this the Major will pay for it's 40% an amount greater than the existing market cap. This money will go into the JV company towards Gunsons costs of the mine development, further funding as required will be through bank loans guaranteed by the Major.
Note, the Major is not taking any interes in Gunson, so there will be no dilution of shares for the existing shareholders of Gunsan.
Gunson therefore reatins all other interests including Mt Gunson and earns 60% of the profit from the Coburn JV.