the salient point in the article that we need focus on is the fol:
quote Delong plans to convert its remaining 28 million options within days to take its share of the company to 13.25%, amounting to a $14.6 million cash injection.
Cape Lambert executive director Tony Sage said there were several options for how to use the extra cash, after the bankable feasibility study on the Cape Lambert project was complete.
"The first thing we are going to do is look at a new flagship project because we are only going to be a 30 percent stakeholder in this one (Cape Lambert)," he said.
"We've sent our technical team to see two or three (potential prospects), I won't say where at the moment because we are under confidentiality.
"If we don't get that, what we might do is a capital refund to shareholders but it looks highly likely at this stage that as soon as the funds come in we'll be in a position to make an offer."
The new project will still be iron ore but not located in Western Australia's Pilbara region, where Cape Lambert was, with Sage saying the company "doesn't think there are any more elephants up there."
"That's why Ian Burston came on as executive chairman, he's got a 15-man team now working for Cape Lambert and when the Chinese come in, they've got eight of their staff so we'll be able to free up a few of our existing staff to the new project," Sage said.
"There are some very good, interesting projects that Ian Burston has worked on personally in his many years of experience.
"He's come across a couple that happen to be not tied up with anyone at the moment. As soon as we get the funds confirmed, we'll get out there and take one of these other projects on.
"We've got $4 million now, we'll get another $10 million probably within the next 10 days and we'll get the $75 million at the end of the month." unquote
for tony sage to be so categorical about delong converting the shares within days implies that there MUST have been some verbal undertaking of sorts to do so. as i said earlier delong had a RMB 1.5 bil capital raising in may07 thru citibank so the source of funds should not be a problem; any failure to honor this target date goes straight to ding's integrity and reliability for this and future undertakings.
CFE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
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