Ann: Hawsons joint venture update , page-7

Iplaye,

While your analysis is technically correct on some levels, you are missing the important thing which is, for a small cap exploration company to come as far as CAP has without tapping shareholders is near unheard of.

The typical story is, float...use money for working capital and exploration program...delays....find only a % of prospectus targets...capex rising so cash burn is faster than forecasted...oops, better tap the shareholders and have another crack.

Nick and his team have positioned themselves to be free carried to the tune of 20% on Hawsons which has a NPV of 3.2b, have not needed to raise cash once and still have near 10mil cash on hand. The deal struck with BMG at the time has been a successful one because it funded them to discover a very significant resource along with the PFS. The winding up of BMG now is simply perfect because the resource is discovered and now gives some real money the chance to come in and finish the job. In junior resource land guys it doesn't get too much better from a capital management point of view.

And it's all relative, check out the mkt cap of other listed magnetite explorers/producers. Look at their deposits, look at the grades,look at expansion ability and the logistics of infrastructure and port access/allocation. End result, risk/reward for CAP is exceptional!