Ann: Downer secures $120 million Karara contract , page-7

re: Ann: DOW: Downer secures $120 million Kar... That is not 100% correct Paps.

Ansteel owns 50% of Karara which is not listed, ie it is a separate company to Gindalbie. Karara is owned by KML (Karara Mining Limited) which is owned 50% by GBG (the company we are shareholders of), and 50% by Ansteel's Australian subsidary.

Now as a SEPARATE holding Ansteel owns 31% of GBG (the listed entity that we are shareholders of). Ansteel use to own 36% but the recent institution placement diluted Ansteel's holding to 31%. In simple terms, GBG and Karara are two separate companies.

Also Ansteel CANNOT increase its stake in GBG on market or via placements as it owns greater than 20%. Under normal circumstances a company cannot buy more than 19.99% of a listed entity without a formal takeover offer or regulatory approval. Hence Ansteel needs approval from the FIRB to increase its stake any further. I believe we are currently waiting on this before Ansteel gets it's placement at $0.93 to bring it's holding back to 36%. Hence Ansteel has obtained all of it's GBG holding via placements, not on market, which is a shame.

In my opinion the FIRB won't allow Ansteel to increase it's stake in GBG or Karara any further. If they did I'm sure GBG would have been taken over by now. Why else would Ansteel go through all the trouble of providing over $600+ in cash, and a $US1.2 billion loan when it could have simply "takenover" GBG.

On another matter I topped up 10,000 shares this morning at $0.90. I'll buy another 10-20k pending the markets next week. Hopefully the selling will end soon.