'rivals at mine's door', page-6

re: 'rivals at mine's door' - joint venture?? a joint venture is most likely not be of much benefit to andean shareholders - in the short to medium term. the terms of any joint venture would be on the basis, that a "major" would want to have the majority equity - ie more than 50%. that immediately waters down the equity in the project, by 50% to present andean shareholders. any joint venture would, i presume, be related in some way, to funding for the project, and maybe some payments, related to production - which of course could be some way down the track. some of these types of arrangements, are structured so that the incoming party, will fund all development, and the junior party repays the relevant share, out of production. as sp has pointed out, there are inherrent risks for the junior party, which would be dependent upon the security of the tenments.

as an investor in kcn, i am not too keen on the takeover anyway, but if kcn do succeed, then of course, i hope that there is a motza of gold on the andean tenements. It would be hard, in all reality, to knock the kcn bid, from the andean perspective. if there is a better bid, for andean - then great. i might be wrong, but i very much doubt that andean will get a better offer

of course, andean would have invited other companies to have a look - so it would not be out of the ordinary, for some companies to have a look - but when they come to work out a price - then it would be hard to beat the kcn offer. a cash bid is simply out of the question. ok -what if one of these companeis who are "at the door", make a scrip bid - well it might be that andean shareholders would rather have shares in a company that is listed on the australian stock exchange

my guess is that the kcn shareprice would kick along nicely, when they announce that the level of acceptances, is less than the required 50%. as sp mentioned, kcn could end up paying for a gourmet meal, but only walk away with a hamburger, and french fries

gold price is back at us$586