Ann: Novo to Joint Venture Kangan Project and take $1M placement, page-84

The money from Sinclair will initially go towards GR/Blair/Canada.  Which was always the plan.  The point you miss is that NOVO is building a much bigger picture, which has begun to extend out E and SE.  JC has pointed out previously that a lot of deals have been done some months ago.  There was some initial exploration and scouting done at Kangan, which has some similarities to the Egina story.  people were shown the potential of the area and have smartly sat on their hands.  The trail that NOVO has been mapping and I'm not just talking about CW/Purdys, is extensive and complex.  It has led them deep into the "basin" and the theory of a source is still in play. Kangan may be the surprise in all this.  A lot of talk about BC and Egina and when you look at Womerina and Kangan, you can see where this is going.  The asset we accumulated at Kangan has more than piqued the interest of QH as it is possibly the link between Cooya and Marble Bar regions.  DEG has traditional and conglomerate gold deposits just to the north of us.  SO yes, the potential value is undisputed.  The value at Kangan on the upside is potentially massive. The reason this sale, even at a few hundred thousand is a great deal.  This is NOVO we are talking about and they are moving fast on acquisition and exploration, with a significant depth of expertise involved in the Pilbara project. SH's are stumping up 10's of millions to be part of this story and the $'s will be used to potentially unearth what many regard as a potentially massive world-class gold system.  We have retained 30%!!!!!!!! That is a great deal IMV and will come cheaply as NOVO and co do all the heavy lifting.  It's an absolute gift.  Let go cheaply? I don't think so. When this really gets underway, we will have secured a seat at the table, where many have sold their seats outright and walked away. We remain in play.
The Sinclair money will stay on track for what is likely the big prize, NiS at GR/Blair.  From what I understand, with the new geo consultants and latest tech, our chances of finding a high-grade lens are much improved.