a bar too high, page-59

Gidbro - hope you are right only problem is in scenario B where the project was "unfundable" I'm not sure ARH actually has an asset to "sell".

They only have a "right to mine" via a sublease which would probably become worthless and Minerology could retake the holding - potentially packaging it up with something else.

This would of course be a disaster for all us minorities though hopefully Clive wouldn't do himself over given he stands to gain the most by monetising and developing through the ARH vehicle as major 66% holder. On the flip side (unlike us) he won't personally lose should Mineralogy cancel the sub lease and reabsorb to his own private company. It is his toy to play with unfortunately.........

Does anyone know if there are other conditions attached to the sub lease which could result in its early termination???? (e.g. taking too long to get to production / failure to obtain funding by a certain time?).

Obviously insolvency would result in termination of the sub lease however, while Clive continues to support ARH via loan facilities or additional shares in exchange for more working capital for ARH then this won't happen.

If Clive thought this thing wouldn't get up he probably would have recalled his loan at recently passed maturity in May 2011 instead of acquiring more shares in the vehicle to provide further funding. If he expects a deal is not too far away makes sense that he would want to "load up" on a few more shares. More cream for him when the thing eventually takes off right........

Doesn't solve your problem Gidbro although if you really believe this thing is a winner you could go and place an ON MARKET order for 5m shares in the 30's. See what happens.....