Col,You're right in that everyone has their price.The...

Col,

You're right in that everyone has their price.

The performance shares have the effect of being a poison pill (in conjunction with Oc's).

Without re reading the performance share clause, I am certain that a trigger that would enable vesting (irrespective of the price) is a takeover.

It wouldn't matter it the price was 8,12 or 16 cents, all of the performance shares come into play.

Pala initially entered at 7.5c, then received the covering options & now has bought a bagfull to get the to 19.9 ish percent..They now hold a strategic blocking position as our white knight...

I will workout their average buy inlater as I seem to have an difference that I can't account for (if anybody has done it please advise)..

16/12/10.288,317,976 shares at 7.5c........... =$21,623,848
16/12/10.144,158,988 options (1 for 2) @ 3c....=$ 4,324,769
12/7/12...43,000,000 options(Oa take up) @3c...=$ 1,290,000

Total...475,476,976 shares held for an outlay= $27,238,617
giving an average buy in of 5.73 cents.

My difference is here ann on 16/7/12 announcement shows Pala holding is now 505,448,678 a difference of 29,971,702 shares to above calculations?

Announcement 12/7/12 show they previous held 462,448,678 took up thier 43m to now hold 505,448,678 at 19.75%

Hmmmm......I'll look for that later.

Getting Pala & management to agree on a takeover would mean they get a premium to their entry & a reasonable compensation for the amount of future cashflow they will forgo.

If Pala were to sell at 12 to 18c (ie 2 to 3 times)their input, to make 2 to 300% in 2 years is a good return. They can take their $60m to $90m & move on to another project.

However if they were to say no, & this is what management are saying (want to get to production), they can see the trouble of getting to production & subsequent rewards is a greater compensation than taking the money & run.

Me..I'd take the money.

M