This means that something has to happen soon. The directors fees have been paid as shares to Oakwood. The question now is will directors fees continue to be paid as shares to Tony direct or cash from now? This block by Winance has stopped all trading. Mind you it has given them egg on face as it has reduced their sell price from 0.002 to 0.001.
Having said that had I more money available, I would be buying more. This is value now. A potential mega iron ore project which has only logistics to be sorted backed by $10M in shares that are ready to pop. EUR at 30 cents makes CLE backed by $20M in shares, at 45 cents the backing is $30M.
I believe that Iron Bear is worth $US2B if sold outright. I know that this would not happen and the price would be a lot less. At $US1B a trail would have to be included say 1% NSR. Anything less would have to increase to a 2.5% NSR. So as an absolute minimum $US500M with 2.5% NSR. Below this would have to be $US100M upfront and a 20% free carry. A good result but our worst would be just a 20% free carry. (we need cash to keep the lights on).
The two Pauls are incentivized to perform. They believe that Iron Bear is an unique resource producing a uniquely high purity product that has a market and it is coming to market in a perfect storm. They have milestones to meet and they are ahead of them. Sept-iles was designed to expand at Pointe Noire. So it is just a case of commitment by CLE together with a JV partner and possibly another producer to add volume.
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