GREY:ADEXF - Post by User
Comment by
greenandgoldon Sep 13, 2011 6:29pm
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Post# 19038666
RE: Can AXI build a port?
RE: Can AXI build a port?Let's not get ahead of ourselves. XinXing is doing due diligence to see if it wants to move ahead with the formal joint venture (and invest an additional $50 million on top of its initial $5.3 million stake). Consultants from Han-Xing Mining Institute and China Communications are helping them review the data and plans to come to a decision.
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I think the reason for the delay is misunderstanding between the 2 companies. I think what AXI wants is for XinXing to finance and build the mine, while it takes a passive minority role. Think of what happened last summer after the memorandum of understanding was signed with XinXing: AXI immediately optioned the iron sands project and also staked significant additional claims on the Melville Peninsula, including precious metals claims. Like I've been saying, these guys are explorers, and they have little interest in the difficult task of building a mine. They're looking for the next discovery to spin off.
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The early press releases after the MOU was signed emphasized 1) XinXing's financial and technical abilities; and 2) that the feasibility study was XinXing's responsibility. Curiously phrased, because while XinXing is a technically capable steelmaker but there's no evidence they have any experience building an iron ore mine. And XinXing is obviously not on the scene to run the feasibility study.
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I think what XinXing wanted was some cheap iron assets to fulfill government mandates. Do they want sole responsibility for building a type of mining project they have little experience with, in a part of the world they have no familiarity with? I doubt it.