Steiny! I think your thinking is too simple.1.) TFA wants the...

Steiny! I think your thinking is too simple.

1.) TFA wants the Yogi Mine Project with DSO, NOT Eradu MPI project. All of FWL's mag iron ore (540mt) are in Eradu MPI.

They want company to fast-track & focus on Yogi. They want 4.5 mtpa (as much & as fast as possibly can). They MAY think Eradu MPI project is not attractive at this stage. $20c subscription is to gain control 3 mtpa of Yogi mine (DSO, low CAPEX, low OPEX & fast start-up).

In summary... focus on Yogi DSO and delays Eradu MPI. This means TFA will make big profit quickly (3 mtpa).

2.) Sin Tang is not happy about TFA controls Yogi & leave Eradu MPI behind for many years as all the money & work will be focus on Yogi Mine to keep TFA happy.

In my previous post I already stated that Sin Tang most likely will sell out all their shares if they don't remove the board. I spoke to Sin Tang, he kind of indicated (or implied) that once board is removed, they might develop BOTH Yogi & Eradu at the same time.

Sin Tang's concern about MPI project is VALID, because once removed Yogi DSO (the 'cream' on top) Eradu MPI may be in trouble as iron ore price pulls back (as predicted by brokers). If FWL wants to develop Eradu MPI, they will need to do it ASAP not focus just Yogi DSO to keep TFA happy.

Yogi DSO & Eradu MPI needs to come together as one. Otherwise it will be extremely difficult later on to find a JV to develop MPI project without DSO.

On the bright side...

If FWL focuses on Yogi DSO & delays Eradu MPI (to keep TFA happy), share holders can benefit from short-term cash generated from Yogi & hence share price. However, long term question mark on Eradu MPI. Sin Tang is a long-term investor & they don't see the value of FWL WITHOUT Eradu MPI developed ASAP. That's why I bought some shares (only some) for short term gains, but still worry what Sin Tang might do.

3.) The SPP money is used to pay convertible notes FWL owe to directors as during GFC directors agreed to defer salary payments. FWL will still need to issue cheap shares to SpringTree as part of agreement was 18 months. If FWL gets money from TFA, the board may consider paying a break-fee to SpringTree to stop share subscription. We don't know what price will Sin Tang sell their shares, and hence how much dilution.

That's just my view, may not be accurate.