accesing hawsons through a silver gate., page-55

Hawsons............anyone know who ones it yet?

When you think that Silvergate has thrown around $20 million at Hawsons to date, one would have to think that Silvergate is also a competitive bidder for the BMG stake in Hawsons.

At the moment, BMG's liquidator owns 40% of Hawsons. BMG was meant to pay CAP $25 million in May 2012, to increase their stake to 51%. The payment did not happen, so the liquidator is controlling 40% of Hawsons. With this in mind, a few comments / questions come to mind:

* The Liquidator is selling the 40% stake as is. Hence, the purchaser of BMG's stake is not obligated to make a $25 million payment to CAP and increase their stake to 51%.

* The purchaser would be obligated to pay their share of costs with developing the project or be diluted. For example, CAP owns 60%, decided to spend $20 million on the BFS. The 40% owner would have to contribute $8 million to the BFS or see their level of ownership be reduced. After all, isn't this the main reason that CAP sold our Hugheden coal project minority ownership to GUF..... we had fixed outgoings payable but no real control?

* Why would Silvergate want to make a takeover offer for CAP before they know who will be the buyer of the 40% of BMG's liquidator?

* So, we need the liquidator & CAP to get moving and announce who has purchased the 40% stake in Hawsons. IMO, until this happens, there will be no takeover offers (if there is one at all)?

* When the purchaser is announced, will a cash component be payable to CAP?

* If needed, and CAP elects to buy the 40% of Hawsons back, could they use debt to fund the purchase or would a capital raising be the only option?

Its been 6 months since the court orders and BMG missed the payment, it's time for some news!!

Outback Oracle,

Was great meeting you as well. The saying goes: "if you think a good education is expensive, you should try ignorance".