AQUILA RESOURCES INC ORD AQARF

RE: RE: Buyout

[morricone]

If you're going to buy - or sell -  something you need to know how much it's worth. At the present time there is only an old resource estimate which is too out of date. HBM can't properly prepare an offer at present and this company's management can't properly evaluate one if they were to receive it. Once the new 43-101 is out then the situation somewhat changes. But then there are still the issues of what are the economics of working this deposit, investment required, expected return on investment and the like which in turn could have an impact on what AQA's 1/3 share is worth. As this information becomes available the opportunity to take out AQA becomes more likely  - if HBM wants to. They can make a fair offer and AQA management can fairly evaluate it.

With the new 43-101 not available until late this year there is unlikely to be a takeover issue in the near future. Factsrbest points out in his post that HBM is increasing their share of the project anyways at the moment because of the money they are committed to spending on it so a takeover perhaps doesn't make sense until they reach the ownership limit late next year. Again, assuming that that's what they want to do. I would personally think they will since they seem to be making a big deal out of it, a cornerstone project for them in their growth going forward.

And if they don't want to well, holding on to a  piece of this project will still be quite rewarding for AQA shareholders. HBM's partnership gives this project enormous credibility. It gives our company credibility.