delayed time table: ploy to accumulate, page-5

Matt, I cannot understand why you think SDL will efver trade anywhere near 57cents again. Hanlong have locked in an upper buy price of 57 cents. They have no need to buy above this figure. I have little doubt that they will buy plenty below it. They have the ability to control the SP now and my bet is they will cause little dips in order to buy up under 57 cents. The more they accumuate under this figure the cheaper the pay out will be at the end.

Conspiracy theories aside the main reason for the long settlement period for this deal is to ensure a smooth ride through permitting with Sundance giving lots of assistance to Hanlong to get the permitting done. This would have been the bargaining chip to getting the extra 7 cents ie help and assistance versus ok it's your problem now. And of course this conditional offer removes most of the inherint risks in buying an unpermitted resource. In the mean time I expect Hanlong will mop up plenty of shares between 50 and 56 cents.

Forget counter bids because as has already been pointed out Hanlong already have a poison pill in place in the form of 20% of the companies shares. No other company is going to want Sundance with that situation in place. And of course the Chinese Govt will not let another Chinese company come over the top. The writing was on the wall here from the time KTs share were sold to a Chinese company. That was the poison pill and meant it would be unlikely a JV partner would consider funding SDL. I think the Chinese always preferred the option of ownership to partnership. Had this been an Australian asset then they would probably have to take the partnership route to clea the FIRB but with the tennements being in Africa it was a much easier ball game for them.