magnetite, page-6

re: not about time in market but timing market from this morning's West Australian.

Chinese snare more Mt Gibson, Aztec stock
9th November 2006, 8:15 WST

Chinese-backed groups are believed to be behind heavy buying of shares in Mount Gibson Iron and its reluctant takeover target Aztec Resources yesterday as the Mid-West iron ore miner inches closer to control of its Kimberley rival.

Shares in Mt Gibson surged 6.5¢ to 86.5¢ yesterday as nearly 6.2 million shares changed hands, lifting the value of its one-for-three scrip bid to 28.8¢ per Aztec share.

At the same time, more than 15.1 million Aztec shares were traded as the stock rose 2¢ to 28¢.

So far, Mt Gibson has secured about 40 per cent of Aztec shares under the bid, which is due to close tomorrow, though a new shareholders notice is expected this morning.

The huge rise in volumes comes a week after a series of trades by Chinese-backed groups. Last week Col Capital, a fund linked to Hong Kong billionaire Lee Ming Tee, sold a 10 per cent stake in Mt Gibson to Shougang Steel-backed Shanghai Merchant Holdings (SMH) for 85¢ a share. At the same time, SMH acquired 6.5 per cent of Aztec.

It is believed that parties linked to Lee Ming Tee and Hong Kong iron ore trader Sinom were among those buying stock yesterday, fuelling talk that Chinese parties are aiming to garner significant sway over Mt Gibson by vending their stock into the bid.

The trading also highlights the growing importance of a strategic stake in Mt Gibson held by UKbased Cambrian Mining, which put Aztec into play in August when it pledged its effective 32 per cent stake to Mt Gibson.

Mt Gibson yesterday formally confirmed Cambrian as its biggest individual shareholder with a stake of 19.93 per cent.

Cambrian chief John Byrne, who last week said he was open to proposals, said yesterday nothing had changed, adding: “I think there will be something happening in the next few days.”

Mt Gibson chief Luke Tonkin said Mr Byrne would be “tickled pink” with the increase in value of his Mt Gibson shares.

He was also unconcerned about the identity of those buying Aztec shares and believed most were seeking a cheap entry into Mt Gibson.

Aztec managing director Peter Bilbe said nobody had any real idea of who was behind the heavy share trading.

END.

Note John Byrne's comment about "something happening in the next few days".

Can we expect an announcement re the sale of his 19% interest to one of the parties looking at mgx.
Would expect mgx will get 50% AZR then perhaps open slather ..

my opinion only