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Make iron while the fire is hotBob Moriarty Last October, Cardero announced the sale of the Pampa de Pongo iron project in Peru to the Nanjinzhao Group Ltd for $200 million US payable on September 17, 2009. An initial payment of $10 million US is due March 17, 2009. Today Cardero announced a prepayment of $2 million US by the Nanjinzhao Group in order to fast track the engineering drilling of the project. The payment of $10 million
US is still due on March 17 and the final payment of $190 million
has been adjusted to $188 million US to reflect today's payment. As I have mentioned many times before, we are in uncharted waters and things are going to happen that we only dream of in our nightmares. The dollar has dropped 10% in four days and risen 5% in two days. That cannot continue, the system is on the verge of failure. There are no "Safe" investments, only investments that are not as risky as others. You want to be in "things" as opposed to being in paper. Iron is a "thing" and is still in demand. Prices have dropped and shipments of iron ore almost ceased but the stockpiles have been used up and once again, China needs iron. As of the close yesterday, Cardero had a market cap of only $97 million Canadian. With a potential injection of $10 million US in a month and $188 million more in 7 more months, Cardero is an odds on bet. $2 million now is found money. $10 million more in a month makes them an exceptionally high risk/reward favorite. Cardero is an advertiser and we are biased.
Bob Moriarty 321gold Ltd |
