Zmans,Maybe in a perfect world, but in the greedy world that we...

Zmans,

Maybe in a perfect world, but in the greedy world that we live in I can't see this happening.

IMO, it doesn't take a Rhodes Scholar to work out HAW's future.

Funny how some say that LCY's management sold us out for 8c per share.

If that's what you call "sold out" then what do you call what HAW's management did to their shareholders?

How about giving LCY a 60% of a 2b ton resource for $3.5M!
(Brilliant deal Sharon!)

Let's not worry about the price for a moment and concentrate only on the actual figure of 60%.

This 60% constitutes a majority!
The loss of this majority could now bite HAW in the butt.

Here's how I see it:

In just few short months, LCY will own 60% of Mt Bevan.
It is estimated that it will cost $1.3b to develop Mt Bevan and bring it to production.

Based on the standard financing arrangement, 70% of the $1.3b will be borrowed from financial institutions ($900M).

That leaves $400M to be raised by LCY and HAW in a 60/40 ratio.

Therefore LCY needs to raise $240M while HAW $160M.

We know where LCY will go to get their share, but where will HAW go for their $160M???

The chances of another NMDC coming along and offering HAW a similar deal to what NMDC offered LCY are pretty much non existent.

Show me one Co which would take up a minority 40% share in a partnership with a big miner the size of NMDC. No chance.

The next option is for HAW to raise the funds themselves by doing a CR.
That's just laughable for a 2 cent company with already 1.8 billion shares on issue.

This leaves only one feasible option:
Ask LCY/NMDC for help.

Sure, we can help but the current commercial terms for this sort of a loan are to get 50% of the Co for free.
So, HAW's 40% now becomes 20% and LCY's 80%.

Now, LCY could consider taking over the rest of Mt Bevan.
Not before!

This way LCY could end up with 80% of Mt Bevan for $3.5M plus financing of the development costs.

Please believe me that I have absolutely nothing against HAW or their shareholders. In fact I wish you all the best of luck, but after reading some posts both on the LCY and HAW threads, I have a feeling that some of you are leaving in a "La La Land" (similar to those LCY s/h who thought that we will get $100M+ from NMDC for 50% of our Co).

Sorry guys but that's not realistic.

If anyone has a better idea of how HAW will get through this, please tell me.
I'd love to know.

Good luck to us all.