Ann: Marampa Fe Project stake lifted to 100% via , page-23

re: Ann: Marampa Fe Project stake lifted to 1... Morning all,

After being away tramping yesterday and returning today to this CFE announcement, and the market reaction it confirms to me that the market is not 'perfect' as per economists view.

IMO, this announcement means one thing - TS has a buyer for Marampa.

TS has tidied up the ownership of the asset (at an attractive price) which would have otherwise been unattractive and complicated for a prospective buyer.

TS possibly needs to firm up the resource and can now do so efficiently and quickly as CFE has 100% ownership and can tip money into Marampa for the drilling.

So, as others have questioned why would AM sell at such an apparently low price?

1) USD200 option would not have been exercised and they know it - TS is too sharp a deal maker

2) TS could have the buyer, possibly MCC, and thus offers leverage via his relationship with them

3) Who wouldn't want a 19.9% stake in such an undervalued company. Effectively the $31 mill is closer to $75 mill based on underlying CFE assets

4) TS and AM are very close. I am sure Chairman of AM is very aware of all the future potential upside with CFE

5) 19.9% of a very undervalued CFE presents all sorts of corporate opportunities in the future

So why did the SP fall so much?

1) As others have said, it's been a great spike up so a pull back is to be expected

2) The prospect of certain dilution vs. uncertain returns from Marampa sale could lead some to lock in profits

3) Lots of newbie investors from publicity of Q Copper could be saying "an iron ore project in SL - no thanks!"

Anyway - I am not selling :)

It is great to see that CFE is not just a 'single deal' success story (Copperco) and TS appears to be able to replicate great deals (buying and selling) in other companies/ locations.

Cheers
John