take over target

We have recently seen CFE do a cash bid for DMM for its Mayoko Iron ore project in the republic of congo.

The cash bid of 40 million by Cape Lambert for DMM was described as " low Ball" by UK analyst.

The exploration target for this deposit is about .9-1.3 billion tonnes. A small jorc of 250 million tonnes exist.

Some comparisons to be had;

-The Mayoko project is situated in a third world country as opposed to Mt Oscar which is hosted in the Iron ore rich pilbra region of Western Australia

- Both Apollo and Mayoko are close to Ports and Railway

- Both have significant exploration targets

- Mayoko is 80 % owned and Apollo is 100% owned

- Mt Oscar only drilled 5 holes as opposed to Mayoko's 12 holes. This provides Apollo with an upside to expand it's exploration target to possible Billion tonnes

- DMM share price about 45c. Apollo share price about 18c

The first bid by CFE has been rejected and it appears the bid should go to somewhere in the vicinity of 50 million.
If this were 100% owned that would translate to about 60 million. Hence this would represent about 60c/share for DMM holders.

Forming a comparison to Apollo given the already " low ball bid" by Cape Lambert, this would translate to a price of about 50c for Apollo share holders with the existing 117 million shares on issue if the same cash bid was made for Apollo's Mt Oscar and Mt Oscar Eat tenement.

THe current share price is only 18c. This provides a significant upside to the existing share price.

Cape Lambert if successful, will acquire this asset cheaply and on sell it for a healthy profit.

Apollo is definitely on the radar and Iron ore prices are on the rise.

I think Apollo's current share price is very much so at a discount and if DMM is anything to go by, it should be sitting at 2-3 times it's existing share price.