cape lambert project unveiled: mcc , page-5

Hi Hawduka,

As you point out, Marampa was bought from African Minerals CEO (Frank Timis) for shares only. I feel this was for a couple of reasons. Firstly, as you also pointed out, it was in CFE's interest to have a large (19% or so) shareholder who is on your side if an opportunistic takeover move comes into play. Timis and Sage have been thick as thieves for decades and with Sage's 6%, CFE only needs to win over only 25% of shareholders to block it. Nonetheless, Timis is in business to make money, and wouldn't have let Marampa go for shares if he didn't think he would be making a large profit on the transaction. Basically, Timis played the long gane, knowing that CFE will be well north of a dollar before too long.

Peter