Ann: Hawsons joint venture update , page-2

I am not quite understand the folllowing point, and greateful if some one can help.

The announcement states that "..In the event BMG does not continue in the Joint Venture, Capentaria itself may elect to acquire BMG's percentage share also under these terms."

Does it mean we have to pay $13m to regain the 100% right of the project? But also in the annoucement, "...(b) Alternatively, if BMG is not wound up by 15th May 2012....., Capentaria holders are also in the very favourable position of having the right to regain 100% of the Project on favourable terms".

What are the favours here? We have to pay back the original $13m from BMG's cash contribution. Surely, interest free term from $13m cannot be considered as "very" favourable. And we have to do capital raising which comes with dilution.

My simple calculation is as follows.

Had BMG not have the problem, we would have $25m + $9m (cash) = $34m. Assuming that we issue 100m shares to BMG for their 51% (we don't need to issue share, but it's equivalent as if we issue shares). So there are 200m shares with $34m. That is 17c cash backing. Now, BMG is no longer a JV and CAP buys back their precentage, assuming that we have to issue an additional 100m shares (to match with the scenario where BMG is in play). What would be the issue price to maintain the 17c cash backing? As we also need to pay BMG $13m, so we need to get $40m (= $25m+$13m+$2m fee) from the 100m share issue, or 40c per share. Would that be possible at all? (thanks God that the SP has been recently pushed back to 38c-39c)

Furthermore, what if no other JV wants to buy BMG's percentage share of CAP and CAP also doesn't want to do so, then what happens with that percentage of share when BMG is de-registered?