somethings gotta give, page-10

Hi Moosh,

fully diluted there are about 510million shares.
However, if the extra 230million options are exercised, then that puts another 72million in the kitty.

So, it becomes 472million / 510 = 92 cents per share.


Anyway.. I got criticized last night for saying this is not a great deal - valuing the resource at 40c per ton. Even if this is a fair price, I would have preferred a cash takeover for say $1 per share - giving more certainty.

Some people are banging on about the 'extra tenement' that CFE gets to keep. What they forget is - there is NOTHING in the deal that says CFE would be able to use the Magnetite plant that MCC would own and build. Magnetite with no pellet plant is not worth very much.


With the share price at 50c, the market is basically saying there is a 50:50 chance that this MCC deal will go through. Nobody can deny the extremely heavy selling pressure we saw today. The share price ran up on no news - and then gapped up and fell back during today. Not a pump a dump, but definitely buy rumour-sell fact.

I hold ... because I HOPE that there will be a better offer later down the track. Maybe Ding will wake up and take another look. I think MCC's offer is a cheapskate deal, and maybe they've left a bit more in reserve in case of a counteroffer.


Joel