accesing hawsons through a silver gate., page-63

Buster,

No I don't work for CAP but we have had many Chinese groups coming to our office looking to invest in Australia.

My understanding of Chinese SOE is that they want to have control which means 70% and even 100% so that they can control those projects totally and bring all their companies, equipment and contract out from China to help them but additionally they now also they want to pay practically nothing for that right.

There must be upwards of a 100 Iron ore project available in Australia that are all seeking investment.

I am sure that Nick must have had a pretty good reason to reject that SOE offer your brought to him. I trust his judgement and don't need to ask him.

Secondly if the SOE gets it cheap enough their is no guarantee that they will continue with that project They might just sit on it for the next 10 years and do nothing.

CAP needs somehow to take back 100% of the Hawsons project before it can interest any party to go ahead with it.

I would suggest that even if CAP had 100% they may have to wait until the BFS is completed if they want to obtain any real value.

CAP strategy in the past was to say Hawsons could be purchased for just $13m however this backfired as it valued CAP 60% at less than $20m and their share price declined accordingly.

CAP should have funded the BFS themselves 2 years ago when their share price was higher instead of sitting on their hands and doing nothing.

Now their share price is very low and whatever happens CAP will have to raise money for the BFS at a huge premium.

I don't see any other white knight coming to the rescue either not while Conglin Yue and your group voted together.

If their is a rights issue the small shareholder cannot affords to pay their remaining shares will be so diluted that their holdings will be seriously devalued.


It seems that ASI cannot fund a takeover bid for CAP and come to CAP's rescue otherwise you would have done this already.

It is difficult to see any solution only problems for CAP shareholders because all the parties continue to take the same path.

Somebody has to think out of the box.