Seems that the mediation was to satisy MCC, but also says that waiting on WA Supreme Court decision. Reading between the lines one could argue that CFE went through the motions but may well have played hard ball in the negotiations knowing that it is waiting on a decision from the WA Supreme Court. Who is to say that MCC did not offer up $60M but CFE knocked that back on the basis of $80M or we let the WA Supreme Court decide. Might well be a game of poker going on at the moment and a counter offer may ne made. Who knows, we could get a release soon saying they have reached agreemnt for $70M. If TS is so confident, then maybe anything less than the full amount is not open for discussion.
All speculation, but maybe the fact that no agreement has been reached is only a short term negative.
Full text opf the article is below:
"TONY Sage's Cape Lambert will continue its legal fight to get $80 million for the sale of its Pilbara magnetite iron ore project to China?s MCC. The WA company said it had taken part in mediation in Singapore, as per the agreement with MCC, but was unable to reach an agreement.
Shares dropped on the news, falling 5.71 per cent, or 3 cents, to 49.5 cents at 1327 AWST.
Mr Sage’s company launched legal action in September 2010 in a bid to recover the final payment for the Cape Lambert magnetite iron ore project that it sold for $400 million.
The final payment was due on the grant of mining approvals, or if MCC did not use “reasonable endeavours” to get mining approvals, within two years.
Cape Lambert is waiting for the Supreme Court of WA to make a decision about the matter, it said in a statement last week."
CFE Price at posting:
48.5¢ Sentiment: Hold Disclosure: Held
