has mgx beem out-negotiated?, page-2

This is just my opinion:
1. Shougang put in $120m, MGX put in much less which means the difference paid is for the tenements as well as the risks with construction

2. MGX will take the risk but in return for the much less amount put in by Shougang, which I believe is fair enough

3. This mean MGX will only make profit from the other 50%

4. They will get it at 15% discount or 75c each but private placement are always at a discount. It's hard to get someone to commit such large sum without any benefit. The options are only for 3 weeks or a month so they should exercise it.

It was stated in the last part of the announcement "Although the Company had envisaged not issuing further shares to achieve its
development of the Extension Hill mine and associated pellet plant in China the opportunity to
secure such a substantial investor and development partner as the Shougang Group was too
compelling". MGX could have gotten a better deal but i think the current deal is not too bad.