some warning signs from company own statements, page-18

Hairy, for the life of me what was the logic in buying VAN MAG in the first place?

CCC's AR 2009 http://www.asx.com.au/asxpdf/20091001/pdf/31l2cl4r7vg6xg.pdf


Re Iron Eagle Group Inc. FORM 10-K Oct'13 2010 -
Sale of Subsidiary
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We owned 66.7% of Vanadium and Magnetite Exploration and Development, Ltd., a South African Corporation. In December 2006, we entered into a share sale agreement with an Australian mining house to sell our 67.7% interest in VanMag. We received $3.4 million in 2007, $845,200 in 2008 and expected a final installment payment of $3.75 million in February 2009. A variety of problems arose which threatened and jeopardized the mining license and as a result, and in lieu of litigation, we elected to accept a final cash payment of $1 million and a production royalty of fifty cents per ton capped at $3 million. We do not expect to receive any royalty payments. Source http://www.faqs.org/sec-filings/101013/PINNACLE-RESOURCES-INC_10-K/ ... search for VanMag within.