rennis,they will never issue that much equity, more like 200m at...

rennis,

they will never issue that much equity, more like 200m at around $0.75 i recon, just like Ansteel and GBG did, ie a 100% + premium to the then GBG share price, which GBG used as its equity contribution to the project.

then the question will then become how much of the project they sell, im assuming a 50/50 JV with some chinese steel mill or ivestment group. Assume that group coughts up $150m in cash for the 50% of balla balla and say another $75m for 100m AXO fully paid.

that leaves the company with $225m in cash, 50% of the project and still requires finance. assume that some crazy chinese bank (or oen of the chinese soveriegn funds) stumps up $850m in finance, you have the package to get the project off the ground.

that leave AXO with around $225m in cash, say they use $200m as the equity funding for the $1b, that still leaves them a few mill light on in the company for cost over runs etc, so you then might see AXO do an equity raising to existing and new investors for another $50m once they have the project partner and they have teh chinese bank finance because the share price should be higher when all that happens. i say should be!!! maybe hopefully is a better word.

thats the only way this deal will happen, mark my words.

the question is will the chinese banks fund it and who will end up being the JV partner.

the guys that did deal for AQA seem to know what they are doing, they got AQA $285m for 15% of equity in the company. just maybe these guys can pull the rabbit out of the hat for AXO.