EMH - Chart, page-18

G'day Morse,

Of course I don't know any more than you do, but reading between the lines, I think the HOA is nothing more than a way forward from 2 parties that know that they want to cooperate and need to cooperate to reach a mutual goal but still have insufficient information to turn the HOA into a fully fledged JV.

As more drilling is done & further information comes to hand, both parties will be better able to make a fully informed and mutually acceptable agreement.

One thing I feel you need to remember is the strong ties that run between EMH & CXB. Adrian Griffin was Colin Ikin's (EMH's largest shareholder & company founder) partner at Preston Resources almost 20 years ago, and from what I believe, they parted on good terms. Keith Coughlan was brought in by Ikin to take over the running of the company, and given what a small place the Perth financial community is, I'm sure they've also known each other for an eternity. These connections will definitely help to conclude a good agreement for all involved.

As for further funding, I don't think that is an issue. Let's face it, EMH doesn't have to build a plant, they just need a few million dollars to complete the PFS. It is how they raise that money & the skepticism surrounding that which is what I believe is weighing on the stock. However, as I stated in an another post, I believe this will come as a surprise to the market.

Once again, I don't have a clue as to what is or isn't going on with respect to any cap raising, but here are a couple of scenarios for you:

1. What if a strategic player wanted to get set & was told to buy 10% on market & that they would place another 10% at a "fair" price? What do you think a buy order for 6m shares in the market would do to EMH's share price?

2. What if stock were placed to a strategic investor or even part of the project was sold to a strategic investor for a sum that would reflect a MUCH higher valuation for EMH.

Coughlan is no idiot & he is backed by major shareholders with PLENTY of money & PLENTY of experience. I feel very comfortable with how EMH is being run and how it will be financed and have been exhibiting my confidence with my cheque book the last couple of days.

Hope this helped crystallize your thoughts Morse.