Dro.You said and I agree"When Atlas Iron is currently trading at...

Dro.

You said and I agree

"When Atlas Iron is currently trading at a $1.4bill mktcap, why the hell would a steel maker commit to developing Hawsons at a cost of $3bill in this economic environment??"

ASI must have a plan but it is rather unclear what that plan is.

ASI have invested its seems around $16m via BMG but applied in court to have that company liquidated which means their investment could end up to be worth nothing.

They paid another $9m odd to buy into CAP.

They are sitting on 19.9% and have not made a full take over bid at this time preferring instead to try to have a disproportionate interest on the BOD.

They could have acquired Hawsons project through BMG which they abandoned but do they have any funds left to go all the way and make a takeover bid for CAP. This is looking doubtful.

Real Chinese interests (SOE) that are likely to put up $3 billion for the CAPEX to ultimately commercialize Hawsons will only invest today when they have majority control.

Nick is trying hard to put a good spin on Hawsons and doing a good job (with the spin) but like other CEO's like Royal for example CAP needs to first raise enough money to fund a BFS, to increase the project ultimate value and therefore CAP's share price but he cannot do this while he does not have 100% of Hawsons and CAP are trading at 25 cents.

Nicks strategy in the past seemed to be one of trying to depress the price that CAP had to pay for BMG 40% interest which in turn depressed the Price of CAP 60% and CAP.

This seems to be ASI strategy too.

This also works against ASI now where they are now a shareholder of CAP. I assume they are looking at a significant loss on their investment so far of several $million.

I don't see anything positive coming out of this mess.