Well given that they are more than doubling the shares on issue...

Well given that they are more than doubling the shares on issue and only allocating shares to KWE and "certain existing shareholders" in unspecified proportions it sounds more like a back-door ASX listing for KWE. Not much joy for existing shareholders.

For those of you who are still holding there is the slight possibility that the Chinese can teach ANM a thing or two about building and running a magnesium alloy plant. Check back on company announcements prior to October 2005 when this mob was known as Australian Magnesium Corporation. They lost a gob-smacking amount of shareholders (and lenders?) money on the Stanwell magnesium plant that was abandoned before it was even completed.

Then the next big thing was Am-Lite that was going to replace all the zinc-aluminum diecastings found in the home and in cell phones, laptops and the like. That mostly only came about because of a surge in Chinese demand for zinc and aluminium at about the same time as other Chinese entrepeneurs were going hell for leather spending money "borrowed" from their relatives, friends and Chinese banks (including "undergound" banks) setting up cheap and nasty smelting operations that flooded the market with cheap but somewhat impure magnesium. Forcing the price of magnesium down. Since then demand for zinc and aluminium has plummetted and given the current economic climate it doesn't look likely to pick up anytime soon. And apparently the Chinese authorities have been progressively shutting down (or trying to anyway) the worst of the polluting magnesium producers. To be fair some of the best producers have made some improvements to an otherwise outdated technology, perhaps KWE is one of these.

Oh and the other niggling question is how are they going to protect their intellectual property relating to the magnesium alloys in China? Make no mistake if Am-Lite really does take off then the best and/or most aggressive of those previously mentioned Chinese entrepreneurs are going to be producing knock off Am-Lite for anyone who wants to buy it and flogging it all around the world. The court system in China is getting better but it is hardly a level playing field for foreign players. KWE may be able to help on that but don't hold your breath.

It might have been more prudent to only share the technology with magnesium alloy producers in jurisdictions with well established and favorable legal systems and where these same mag alloy producers were facing stiff competition from China and moving up the technology ladder and protecting the IP was in their own interests as well.

Good luck.