this is why you don't deal with romanians, page-6

It sounds a bit suspect. I think the Romanians dropped in the guarantee bond after the Canadians won the bid tender. It's rather absurd to think the Canadians didn't read the document before and see this requirement to lay out an additional 35 mill. The same thing happen to a MD friend of mine dealing with a company in Qatar. After two years of setting up a 600 million dollar deal and winning the tender, they suddenly wanted a guarantee of 50 million to conclude the business. Maybe it's a Euro/Arab thing but it can leave a lot of businesses and their cash flow ruined if they didn't plan for it.

I think organizations do it to flush out prospective partners with weak cash positions and to even force up bids. Roman copper will probably bid 170 mill this time. Now the market knows what to bid to win it, so it's a bit strange the whole affair. Anyone clever enough would bid 200 + 40 and they would probably win it. I don't think the Canadians will offer more at this point.