sing tan development, page-3

I have located the article on Sphere Minerals in todays West Australian. For other readers the article relates to a takeover bid by Xstrata for control or complete takeover of Sphere Minerals.

Sphere have three magnetite projects in Mauritania.

Sing Tang announced they had accrued an 8.6 per cent stake in Sphere when they bought 5.9 million shares of stock for $15.2m, or almost $2.56 a share. Xstrata's bid is $2.50 a share. As of this date it is reported that Xstrata only declared an interest of 6.95 per cent in Sphere.

For us shareholders in ROY this story is worth following as Sing Tang is the holder of about 15% of ROY shares and partners in the Razorback magnetite project in Sth Aust.

I do not know the full extent of Sphere Minerals magnetite reserves but the target by ROY of proving up 1 billion tonnes must be right up there with any other project.

As previously posted I have still not seen any mention of the Sing Tang next payment of $10 million being received or paid to ROY to continue the JV.

If Sing Tang are going to give Xstrata some indigestion perhaps Xstrata may want to go into the market and grab a stake in ROY and give Sing Tang some of their own medicine. I have always said that a 15% stake in ROY is only a blocking parcel and Sing Tang would need to move up to a 19.9% holding to have some firm ground to fight any takeover predators. To do this they would need to enter the market and gain approx another 20 million shares.

ROY is bargain priced at 22 cents and is a lot different than the $2.56 Sing Tang is paying for Sphere.

Lets sit back and see what eventuates.