good old clive !!, page-11

1) ARH's board of directors all listen to CP only. They don't answer to any other share holders.

2) Share placement is for CP only.

3) Share placement is to pay directors who also work for Mineralogy. May be Mineralogy is NOT paying them any salary, but paying them using ARH and dilute your holding each time as sp falls further and more raisings.

4) The problem is you can only do share placement at 15% of issues shares each year. For example, if they are do to share placement for CP when mc is $30m, they can only raise $4.5m ($30mX15%). $3m is to pay CP back the old debt, so working capital is only $1.5m for the entire year.

If mc continues to fall to eg $20m, then 15% of $20m is $3 (just enough to repay previous debt owe to CP)... absolutely no working capital, so it will be insolvent. Directors could be in jail if trading while insolvent.

As I posted previously, IMHO the most effective way to fix up ARH's problem is ask CITIC to buy ARH's project since they got everything setup already. But CP must be nice to CITIC AND waive his royalties on ARH's ore mined. CP should also give another 1Bt (ie 2Bt total) to ARH, no royalties and ask CITIC for t/o ARH at massive premium eg $0.80/share. So $0.80 t/o on 2 Bt and no royalty fees.

Low iron ore price
CITIC produces 27mtpa - 14mtpa from their current project with royalties & 13mtpa from ARH's project NO royalty

High iron ore price - eg $160/t
CITIC must produce all 27mtpa from their current project with royalties

This will protect CITIC from falling ore prices and keep them happy. When they are happy, CP has MORE negotiation power with CITIC on CP's QLD coal and/or more iron ore. At the same time CP and other ARH holders can off-load their shares at $0.80 due to t/o.

Everybody happy, no High Court fighting and nothing gets done.