cup handles.....for giants, page-4

i like giant cups NL... hehe :-)

i can see a trigger to drive it but we will have to see...

the deal hmmmmmmm - its taken some thinking :-/

i can see good things from it, but there also aspects i don't like.... hopefully some clarification on timelines from Teck in regards to the drill program will be forthcoming.....

Obviously Teck is a major zinc company on a global scale which no doubt holds benefits & highlights the significance of Myrtle for them to simply hold this interest.

The deal while if carried to its full extent shows a 50% premium to RXL's shareprice prior to entering the trading halt it still has allowed them to gain a majority stake very cheaply for what was already signifcantly undervalued compared to its peers. Teck are now leading the exploration front & so really it is out of our hands now and progress is put forward on their terms & along their timelines. Hopefully they are not going to sit on there (moderated) at let time tick by as the maximum timelines stated in the deal where fairly long dated.

Looking at In-situ values of the resource being $5.2B before walking into the halt and then $2.6B walking out obviously highlights whats been handed over & with the potential to increase Tecks hand to 70% meaning $1.5B left for RXL on the current resource.

Although as has been outlined by the company the view that Myrtles Resource can grow 300-400% larger with further drilling means by the time it gets to Teck possibly taking 70% the remaining 30% that RXL will hold will be worth alot more.

Teck also means there is partner now with big cash books backing the project so the eventual move to a producing mine should the drilling play out as expected is quite possible with no other need for partnering sources.

RXL can now also maybe look to other projects with Teck taking control of the exploration both funding & management so we're really just free to run of the success of the resource growing.

Interesting times though looks like McArthur Basin is shaping up to be the next big Zinc region with Xstrata, MMG & now Teck.....

PS - i wonder if MMG caught whispers about Teck looking into RXL hence there move to lock up the land behind us ?

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PPS - if Teck comes out with drilling to commence at Myrtle in the next few days - thats the cups trigger :-)