Ann: Shareholder update Amayapampa, Aust Projects, page-10

re: Ann: Shareholder update Amayapampa, Aust ... Hmmmmm. A very interesting update today.
Almost as though the Board had heard some questions being asked the other day about how Amayapampa was to be funded.

Well not really! I hardly think the Board would be interested in such trivial comments.

Okay, so previously JK has been floating the prospect of getting some small scale production going at Tregoora utilising the high grades of the "hotspots". That would then provide some cashflow.

He has also floated the prospect recently of some production a Burraga utilising the tailings and getting residual gold and copper from there to again generate cashflow.

Now, to save the time and distraction and capital of doing that they are looking at getting money for the actual prospects themselves.

At this stage they seem to be focussing on Tregoora and Northcote gold areas but Burraga is also a possible one for sale too.

I would guess this is at least a twofold exercise ahead of the BFS.
(1) They are assessing what they might consider as saleable to raise some capital and perhaps prioritising what they might flog off first if they had to
(2) They are trying to get a handle on what they might be worth to someone else. So if they publically indicate that these assets are up for possible sale then that will bring forward some expressions of interest. Testing the water as it were.
(3) It also advertises that they are really serious about Amayapampa. That RAU thinks it is a pretty good project to undertake and it is prepared to go in boots and all to make it a success.
(4) That prepares the ground for the BFS when it is announced (my guess now would be about Tuesday next week - accepting bets on it)and means that financiers could be keen to get on board. If RAU is putting some of its Aussie projects on the chopping block then this Amayapampa must be the goods...we've got to be in!

Don't overlook the fact that they are willing to consider "farm-outs" as well as divesting the properties. Maybe a farm-out might be attractive in at least Burraga's case.

Just a few random thoughts for what good they are.