Ann: FOX IN NEGOTIATIONS WITH JINCHUAN GROUP , page-3

Well this is very interesting now... I know people will say big chinese company, blah blah, been around a while etc, and that its in their interest to get things moving.

But lets face it, $20m is alot of money. With that they probably could have purchased the rest of the company, and had some change.

I am not totally certain if this is in response to the now likely to fail SPP, and provision of funding, in order to provide a alternative solution. To be honest I had wished Management would have taken this approach first.

So it looks like a couple of things are going to happen. We ordinary shareholders are going to be diluted while the majors increase their stake in the company (beyond what they could get on market without pushing the price up higher than SPP). Jinchuan are going to give us $20m to start the project, of which I think they will take copper/nickel to the value of that as it comes out (i.e. apportion income to repay loan) - hopefully not but see that been somewhat the case.

I do view this as a positive development, but seemingly one of possible desparation by an investor, who has alot at stake and not much to show for it. Remembering they bought in at values many many multiples to today's share price. I do not see this announcement been a result of a great management.

But positive none the less. At least cash-flow is no longer an issue with fox! Changing form a LT buy to a buy now, as improved cash-flow should hopefully see the company re-rated, and less risky!