Looks like there was another mining company at Mt. Isa, GBM Resources, that entered into partnership with an asian company (from Singapore in this case) last year. Although completely different, this might give some insight into LGDI's situation. According to GBM's last quarterly report: http://www.gbmr.com.au/reports.15.html

-GBM entered into binding joint venture agreement in 2009 with Resource Kings, a commodity trading company.

-GBM raised $2.6 million with terms to acquire 90% interest in GBM's phosphate projects (pretty much a sale rather than a partnership). For this, GMB issued over 8 million new shares to GBM. The interesting part....the price was set at $0.31 when agreement was announced, a premium to market share price of about $0.22.

-Outcome was just recently anounced failed...The partnership (aka sale) was recently cancelled because Resource Kings culd not come up with the money. We are dealing with a real producer not a trading firm, so we probably won't have that issue.

-GBM's phosphate interest seems to be under about 10% of total projects...the primary being gold and precious metals. So price of GBM shares seem to have been negatively affected by correction in gold since peak in dec 09.