great opportunity to accumulate, page-25

That's an interesting qn, Plainsailing. Why DID CBH take a 5% position in TNG? I am not sure either, but here are some rather tasty possibilities:

1. From the Triako takeover, CBH inherited Sorby Hill, which is a 16mt, 5% lead, 2.5% Zn deposit about 30k up the road from TNG's Sandy Creek deposit. Maybe it was a case of you guys take a 5% slice, then we'll help you with Sorby Hill, having now been established in the area for a few years. That's probably the most narrow of my theories.

2. Once TNG complete this year's drilling, they will have established a major new MVT district. That's the plan anyway, according to the last announcement. That being the case, CBH with it's cash flow positive existing mines, and TNG with its major new deposit, become a pretty tasty joint takeover target by the majors. Is it possible that is the plan? Perhaps a merger in the first instance. (Mind you, I think TNG will be an acquisition opportunity in its own right pretty soon)

3. CBH must be au fait now with what TNG have got. Perhaps they wanted a foot in the door, allowing TNG to complete this round of drilling, prior to a takeover. Scrip in CBH would not bother me, but the value of TNG would need to be multiples of what it is now. I am certain the Board see it that way as well. (I actually think this scenario is unlikely, beause I happen to think that TNG will have a larger market cap than CBH !!)

I guess the only sure thing is that they did not take that 5% position for the heck of it.