Enjoy a read from Page 106...

Enjoy a read from Page 106 onwards:

http://www.scribd.com/doc/96121490/Patersons-Resources-Review-May-2012

Overview:


Overview
--------
Several pieces of the puzzle are falling into place for ZYL. The company is working towards a funding solution for both its Mbila andKangwane projects. For Mbila, 2 banks have offered project ?nancing of between $60-75m. Also, offtakers are willing to providedevelopment capital in order to secure supplies of Mbila anthracite for their manganese, vanadium, and mineral sands plants.With $25m in cash ZYL looks to be funded through to production at Mbila. For Kangwane, the company’s original
?agship project,negotiations are continuing with two commodity trading houses over funding and allocation rights at the nearby Maputo exportterminal. It should not be ignored that Macquarie Bank is still handling the approaches from third parties regarding a potentialcorporate action. We believe one element that needs resolution is the exercising of an option to acquire a further 30% in Mbila.With such a clear path to development before the end of 2013 and a highly sought after product, ZYL’s projects are very attractive.There are concerns about a capital raising but this would only be to complement a funding solution and/or raise its stake in Mbila.Accordingly we retain our BUY recommendation with a price target of $0.47 per share.

ZYL LimitedZYL ($0.15)
Recommendation: BUY
Funding puzzle resolving
Analyst: Andrew Harrington, Matthew Trivett

Cheers,
Pandelis
(Still of the "Faith", 2 yrs from now will determine the type of devout follower I am: "Bishop" with "Holiest of Holies" in sight or "Self-Flagelating Monk")