Ann: COZ Agreement for Legune Station, page-8

Inchiquin,

I agree, the continual company shuffling over the years doesn't help, for sure. Taking on a feasibility study is one thing, taking an option on a property of greater value than their entire market cap for a project still in feasibility stage in the absence of seed funding or a major backer is ballsy, I couldn't find what it has cost them to secure a 3 year access and option on Legune Station but rough rule of thumb would be 1% - 2.5 making the cost excluding the feasibility study around $600k - $1.5m mark unless they did something tricky like a bank security over the contract of say 5% of contract value which would cost them about $100k maximum.

As someone pointed out the rates are good for long term debt but getting it can be a bit of a challenge if no solid security to pin it against. The US has 10+ year offers of around 3.75% at the moment for the more volatile end of the market. But these guys need a major backer or two, so if someone like, dare I say it, Gina Reinhart, bought Legune Station as part of her beef play and allowed COZ to continue with their work and Gina converted her Legune Station holding to a majority holding in COZ then that would be smart. All station personnel have offered to stay and manage the place I have heard. The other option might be to go talk to Elders.

As an investor the announcement and the way it was done doesnt inspire confidence and isn't the sort of thing that excites them and as a trader it isn't going to set the price on fire when the majority is held by the Directors.

But I like the fact they are trying to do something and whether it is the right thing or not, actually doing something is a good thing. Even if I was expecting alot more from a suspension. and just to flog a dead moggy, I still think talking to MBD would be smart, perhaps more so now they will need an improved cash-flow to support feasibility costs.