Hoov,

Agreed with your hypothesis. With a combined support of 20% from management +9% from CLF, it's almost a bullet proof vest against a hostile TO, considering that when it comes to a vote the 29% would become higher due to the fact that the turn-out would not be 100% and that Management and CLF (due to prior agreement) would vote the 29% as a block. So when the votes have been counted management side would have more than 1/3 of the total votes. In addition, there would be at least a (sizable?) chunk of votes coming from institutions and retail shareholders which are against the hostile TO, maily because the offer is not up to their level of acceptability.

One possible little kink. What would happen if CLF block vanished, say due to CLF selling the 9% block, for cash, as part of their restructure plan to help blocking the proxy fight with Casablanca?

It is not known if ZEN management (or ZEN itself) has the ROFR when CLF wants to part with its holding. Perhaps, ZEN does not have enough spare cash to pay for the 9%, but theoretically it could find some "friendly" group(s) to buy this stake from CLF. Anyone knows the details of ZEN/CLF agreement when ZEN obtained 100% ownership of the claims?

May be it's time for us, the retail shareholders, to form ZSU (ZEN Shareholders United), an informal front, just like what they have for KWG, PRB and FNC. As of several months ago, the tallies for those groups were over 10% OS which can carry some clout in a vote (for or against, depending on the offer).

Any thoughts, LTGoldB, anyone?

goldhunter