We can all Win- 11/6 at 19.20 post, or we can all loose as well., page-17

Jake,

If the existing Todd offer wins there is an injection of $10m sometime soon after. The rest ($55m) is conditional upon successful completion of rail and ports works sufficient to be useable. Targeted timeframe is end of 2016, I think that is a bit optimistic personally.

In the meantime the mine at FMS will need to be prepared, planned, extraction planned designed and built, plant and equipment sourced and secured, administration costs etc. so that FMS is in a possible position to move at the same time as the transport infrastructure or close to it. Idle infrastructure is an expensive drag on capital.

Then there is this fee structure imbedded in the Alliance Agreement = this hasn't been discussed much in here as folks have been distracted on other topics. Essentially if this agreement is left as it is FMS will have a funds bleed back into RTA (by then owned by Todd and Nick Curtis).

If Todd defaults it is a windfall for FMS that the shareholders are going to expect some part of, including Todd Corporation as a 20something% holder. But at least the mine will be prepped and ready to go and whether the Board has a business contingency in place with another party and the price of ore has come off its all-time low.

Deploying that $10m windfall elsewhere leaves FMS exposed in terms of not being able to move swiftly if and when the RTA/Todd transport infrastructure is ready and that will cost the company. Using it to develop the other tenement would be mad at this point as it has similar issues and market dynamics to content with and there is no market recipient partner.

FMS needs to get out from under the current offer and get onto a better negotiating table.

Cheers