Indee, page-7

If DEG walk away from Indee, who else might want it and what they might be willing to pay are completely irrelevant to DEG. That becomes a problem for Chinese sellers.

For DEG, the relevant issues would be

a) losing half the resource
b) losing the proposed site of the plant and camp
c) being sued for breach of contract

b) is just an annoyance that can be overcome with a bit of work.

Losing the Indee ounces means they won't be mining in the next 5 years. That's not considering the conglomerate, that's just on the structural gold. They would be exploring for years and years to get anywhere, assuming they didn't run out of money first.

If they were sued by the vendors, as would be the vendors' right, they would probably run out of money far sooner. Especially if the contract was enforced by a court, which it probably would be.

This course of action has been committed to. You're right that trying to find it by issuing a third of the company's market cap in shares isn't viable, and I agree. But the question isn't whether they should walk away from Indee, because they can't.

The question is how do they pay for it without destroying the value of the company? At this point I can't see a CR for $9.7m being supported by shareholders, so they're going to need to have something else up their sleeve.

The recent drop says the market thinks it's going to be a CR. I would be inclined to agree, except for the $500k the directors stumped up in November at 10c. That's a big pile of cash to put down if they had no idea how Indee was going to be paid for.

Perhaps they thought they would be able to do another CR at 10c. Perhaps they have something else planned. Dunno. Will have to wait and see.

But walking away isn't an option. It hasn't been an option since they signed on the bottom line.

Cheers