where to from here?, page-6

Perhaps it is not in the interests of the major shareholder, Cliffs, whom I understand contributed most of the present funds, to see their shareholding diluted by exercise of the options? They have a longer timeframe than most smaller shareholders, and far deeper pockets.

The company appears to have given the optionholders a good chance, by completing drilling on three major targets and trying to get a new project over the line in time for the option exercise date, and it is just bad luck that these rather heroic efforts have not come to fruition.

I very much doubt though that Cliffs would vote in favour of a get-out-of-jail-free card for optionholders, even if the directors wanted to provide an extension. If Cliffs really believe in the company's directors and its potential, they would probably rather put in another $20m themselves, and increase their control of the company.

I was previously of the opinion that the directors would do anything possible to push the options over the line, to get that $20m in, but looking more closely at the strength of Cliffs position, I think there may be limits to what they can do, apart from their admirable efforts on the ground.

Not a company for the short-term trader, if that is the case.