53and10

Quite a reasonable reading of the situation.

CLF is fighting for survival. I should rephrase...CLF management and the members of the current BoD are fighting for their survival due to the action initiated by Casablanca which has proposed its own slate of directors and new CEO. Casablanca was not happy with the current situation and want to divest all international assets including CLF holdings in Canada (Fe, Chromite, graphite). CLF has decided to postpone its proposed $3.3B chromite in the Ring of Fire indefinitely (pointing fingers at various reasons, but the real reason is that it has no money to take on a $3.3B project while its Market Cap is at about the same level or less). It has tried to trim down costs and divest assets that do not fit in the current strategy, one of which could be graphite 9% holding in ZEN which could fetch something of the order $20M would would help its treasury.

So, it would be no surprise for CLF to let that 9% go to a new player.

It should be noted that the latest presentation seems to be designed to fight off Casablanca's attack. But, CLF may need to worry about entity/predator much bigger than Casablanca that may want to gobble CLF whole. After all, a $3-4B price tag for CLF with its solid assets in Fe and coal would look quite attractive to some suitors with deep pockets.

I presume a ZEN shareholders/or anyone could ask/pin down CLF on its plan for the 9%ZEN during the conference call on Friday.

goldhunter