You make a couple of valid points...but I would do a little research into your query before making a post on a forum..( but that's just me ) however I will try my best to answer your questions avoiding you the troublesome effort of due diligence....

 

You ask?

I can't understand why the cliffs sold their 20% share of the property for 1.25 millions shares.

   Cliffs is a major global iron ore producer.. Cliffs operates iron ore and coal mines in North America and two iron ore mining complexes in Western Australia..They have absolutely no interest or knowledge of the graphite market...Cliffs is not an exploration company, they are a mining company.

At the time of the announcement, Zen's share price was 60 cents,making the value of the 20% worth $750,000.

 Correct. But also remember that ZEN under the original agreement with Cliffs had to spend $10,000,000 on exploration on the property by 2014 to earn the 80% interest..ZEN has already spent the $10,000,000 on exploration, so ZEN already owned 80% of the project. Cliffs did the deal now, because the longer they wait, the less they own..and the more money it will cost them to control the project. If they own ZEN shares they will get "instant profit" when the shares rise in price once the purity results are released. As the share price of ZEN rises so do the shares that Cliffs own. You also fail to mention as part of the agreement between Cliffs and Zenyatta that Zenyatta will grant Cliffs a net smelter return royalty of 0.75% on the Block 4F Claims, of which 0.5% can be purchased at any time for $500,000...In the end this was a good deal for both parties...