Yep, CFE got to put one of their guys on the board of DMM as...

Yep, CFE got to put one of their guys on the board of DMM as part of the agreement. Must admit I was pretty pissed off when I went through the details of convertible note a while ago.

I have changed my tone in the last couple of days when I started researching this company again. In terms of feeling hard done by the company, DMM stated that they had no other means of raising money and in December (when agreement was made) the credit markets looked like they were going to get A LOT worse (at least that's what I thought). The company knew that they would be running low on money in the near future, so took the only agreement they could make. Must admit it was a rough one but I guess DMM had to do anything to get funding for drilling etc that would last them until they could get financing for stage 1 or get a JV partner. They could have waited till the last minute and held out for a few more months and hoped credit became a little easier to get a hold of. But if no one else was willing to lend them money, they could go into admin. I guess holding out would be like playing MS Hearts and trying to get all the bad cards. If you get them all, great - you're in first place. But if you miss one of the cards, you're stuffed. Sometimes it's easier to play it safe and just take deal on the table rather than holding out. Sorry about that analogy.

About Cape Lambert
They appear to have done well out of their Pilbara project by selling it to the Chinese. It says they did ~55,000m of RC drilling and ~5,000m of diamond core drilling. Seems like they did a good job advancing the project. A total of 400million for the sale price sounds ok. Just goes to show what these guys have already done (and are capable of repeating more or less in my opinion).

I think what DMM is alluding to in the most recent announce (Strategic Partner Negotiations etc) is that CFE could potentially use monies from their recent sale to advance the project to production. Anyway that's just a possibility because I know about as much as everyone else here.

As for CFE taking over DMM, I can't see it happening. Main reason is that DMM is already speaking to a number of groups about Strategic Partnerships and Financing arrangements - something that has particularly made me take more notice of this company recently. I have to cut this post here, f1 qualifying starting soon.