See post below re a company buying into ground apparently 30km...

See post below re a company buying into ground apparently 30km from Sphere and along strike.

They rallied from 3.6c to 15c yesterday!

Appreciate any Sphere experts views on whether iron ore is likely or is this a beat up?

I had some Sphere and was impressed by the quality of the ore. I also have held CHF for many years without success until this sudden change in their business plan.





http://asxguru.com.au/
Nov 17, 2010 0
Charter Pacific Corporation (CHF) ? Options Make 4,900% One Day Gain
Categories: ASX Speculative Stocks

On a day when our market copped an absolute pounding, it was interesting to note that Charter Pacific Corporation (CHF) did the exact opposite and rallied hard. The shares managed a very impressive 294% gain with the stock closing at 15c but the options did even better.

The options managed stunning 4,900% gain after opening at 0.001c and rallying to a high of 5.9c before closing at 5c.

The reason for today?s stunning rally was this announcement which the company made early this morning ? before the market had opened. The announcement concerns the acquisition of two iron ore exploration blocks located in Mauritania, Africa. The most important factor that drove today?s rally was the location of one of those exploration blocks. It is located just 30km east of a Sphere Minerals owned exploration block. Sphere Minerals has already reported a 2.74Bt resource of iron ore on their exploration block and is currently in the process of being taken over by mining giant Xstrata.

There are two other contributing factors that helped drive the rally share price as well. One being the very tight market capitalisation that Chart Pacific Corporation has, and the other being the minimal consideration being paid for the proposed acquisition.

In the immediate future I think there is more upside but at some stage there may be a sell off. Over the longer term this stock could easily rally to highs of $2 or more but it?s still very early days. The first step for the company is to conduct due diligence to ensure that all is above board and secure the acquisition. Then much exploration work will be needed to identify iron ore formations and then develop them.