Have a look at the headline to the ASX for TRF's 9.14 am...

Have a look at the headline to the ASX for TRF's 9.14 am announcement:

"Trafford subsidiary to issue 4.4 million shares"

That sure tells us something!!

Now have a look at the start of the announcement "Chinese Mining Fund Signs MoU for Stage 1 DSO" released to the ASX a few minutes later about IFE being supported to the tune of $35 million.

"The Directors of IronClad Mining Limited (ASX:IFE) and Trafford Resources Limited (ASX:TRF), participants in the Wilcherry Hill iron ore joint venture, are pleased to announce that they have signed a Memorandum of Understanding (MOU) with MCCM Capital Management Co. Ltd.,(MCMC), under which MCMC can earn a 50% interest in Stage One of the Wilcherry Hill Iron Ore Project in South Australia by agreed expenditure of AUD$35 Million.

The MOU provides for a total of 120 days for MCMC, IFE and TRF to enter into a Stage One Joint Venture Agreement. Upon completion of MCMC's expenditure, the Stage 1 Joint Venture will be MCMC = 50%, IFE = 30%, TRF = 20%.

IronClad retains 80% of the remainder of the Wilcherry
Hill and Hercules projects."

My comments:

Carefully note that "the Stage 1 Joint Venture will be MCMC = 50%, IFE = 30%, TRF = 20%."

TRF's 20% remains!! But IFE have dropped from 70% to 30%.

Plus TRF own close to 50% of IFE. By my reckoning TRF has a significantly higher interest in the project than IFE after taking TRF's equity ownership of IFE into account and may well be the place to be.

Let's also not forget about the possibility of gold - which belongs to TRF, not IFE!

Now let's see how the market responds today.