Just looking at the numbers alone.Sumitomo Deal - $15m earned...

Just looking at the numbers alone.

Sumitomo Deal

- $15m earned them 45% of the lot (feasibility phase)
- $90m gave them another 25% (development phase)

** Point to note is that the additional $90 was either to be incurred or guaranteed, which presumably mean that MDX may have had a larger obligation (read loan) that Sumitomo would have bankrolled.

This deal

- $17m earns them 20% (feasibility phase)
- $35m earns them another 30% (development phase)


Just on that alone, this is a better deal for MDX. They hold onto much more the project to be carried through feasibility.

Similarly they still retain 50% of the project post completion of the development phase.

This will in turn mitigate future dilution of MDX because they can retain much more of the DSO revenue which will be needed to fund their obligations to the magnatite development.

All that said, if their plan is to exit prior to magnetite development, then they've got a bigger slice to sell.

Lets see how the market reacts.

GLTH