Re Sandfire and Talisman and Monty, this is an extract from the Sfr ann today, and one that rang bells for me when I read it - not alarm ones but Christmas ones:
" Sandfire is very encouraged by the results to date from this exciting new area, which has all the hallmarks of a significant new centre of VMS mineralisation within the Greater Doolgunna Project."
NB: 'significant new centre'.
Now, if RNI's doolgunna is part of this 'centre', then how valuable is this tenement!
That said, it ain't yet owned by RNI, the co just having an option to buy it by 30 June next year, provided it pays Ascidian, the owner, $50k by 31 August (next month). That done and wanting to buy it Rni has to then pay Ascidian $2 million cash and three million ordinary fully paid RNI shares (9 jan 2012 ann).
Now it may want to deal with Sfr on a jv or sale, and if so it will have to involve ascidian (David Jones, geo) in the process. I assume that the option is assignable with consent, hence the 3-way agreement. Nevertheless, and in order to overcome any possibility of no consent forthcoming, Rni could exercise the buy option by using Sfr's money in a 2-party agreement and than on-sell to sfr (part of the signed agreement) and pick up the agreed sale price less the $2m paid. This could be a complete sale with royalties too or a joint venture, but one that has a decent up-front price tag attached to it.
Imo, Rni's Doolgunna is now prime real estate, and there can only be one real buyer.
AUR Price at posting:
1.7¢ Sentiment: Buy Disclosure: Held
