I was most disappointed of the failure to secure Mt Carbine....

I was most disappointed of the failure to secure Mt Carbine. It's clear that JK and GN have different views about a fair offer.

The announcement cannot provide technical details which are worth lots of money, which can be recovered if sold to another party who is willing to make GN an offer he considers acceptable.

I am not sure what the price of tungsten is now, but a while ago it was US$250, 5x what it was when the mine was shut about 20 years ago.

It was never expected that RAU would fund an expensive drilling campaign to determine how much ore is left inside the pit. However, poeple here on HC made some vague calculations and came up with 100's millions of potential profit. Mt Carbine would have provided RAU with a local infrastructure to be used for more tungsten operations if they could prove up reserves at Whumbal.

My overall impression is that $14 mi was the maximum RAU could offer, given their financial situation and the recent turmoil of the financial markets. A few months ago they could have place 50 mi share at 20c and boosted their coffers to match GN's request.

I feel that the existing quarrying operations may not have been properly evaluated as a potential source of cashflow. GN employs about a dozen staff so the operation is of a decent size.

Unless RAU can turn things around with GN and prop up a bit the offer so that GN will tempted to come down and accept it, RAU can kiss the project goodbye.

Even if the price of gold has gone up a lot over the last few months, it needs to be seen how much impact will have on RAU's project. So far RAU has copped a drabbing as most investors were convinced the positive announcement on Mr Carbine was going to come up.