new "partners scramble" for mbalam iron, page-6

The potential partners could well be positioning themselves at the moment. With Hanglong they acquired lets say close to 20% of the company for 44 cents a share and then the remaining 80% was to be at 45 cents a share so in effect the whole transacation would have cost them close to 45 cents a share.

With any new player if its to go down the path of a takeover, they now have an opportunity to gain the initial 20% stake at aound 10 cents a share, so then even if they then offered 45 cents a share as the takeover price, their effective price for 100% of the company would then be closer to around 38 cents a share.

This way a price of 45 cents a share would most likely be endorsed by directors especially in the light of the statement made by GJ that the company today is worth significantly more than it was when Hanglong came in.