Hi all, just spoke to Dean and he was happy to share.
This is a fantastic deal for DRE and BC8. BC8 in compliance with duty to its shareholders too. My words - money for jam for both parties. The cap raise is $3M in total. I believe it will be over subscribed based on this huge tick from BC8.
Strong confirmation for next 18 months BC8 have been involved for months as disclosed. Therefore they have done the DD for us here. Their stamp of approval and to lock in their position is additional high grade ounces for Paulsons and profit on top of profit out of Paulsons on top of profit from Kal East.
Pritchards was alluvial and then on a vein cleared in the process and no grade is therefore available. Best guess is pointless but we have an indication at Two Peaks where the approach was alluvial to start, then blast and then process, through to delivery to Perth Mint. Estimates based on non-compliant calculations put grade at 1 - 1.5oz/t. The Lead Gold Mine was pure alluvial won gold highlighting that there is gold in them thar hills
Cost to DRE The $10M max draw down will be funded by BC8 in this case as developers managing their contractors. They invest that in order to make $25M as their bottom line profit for BC8 shareholders. DRE get to keep $25M (@ $4600/oz hedge as an example - could be higher given the trend or lower if I am wrong about this year). The returns are robust at lower prices anyway. That is just the start and an indication of what is to follow for DRE over the first 18 months. It will be an open book arrangement beneficial to both parties.
This is derisked bonus cash flow for DRE. This is confirmation of viability of the new mineral field at Mangaroon that just keeps on delivering for us all. This will enable DRE to do what it does best. More news on the recent tenement package to come soon too - as Dean has strong contacts with those who did the early exploration work on that area. I look forward to the rest of 2025 as I consider news flow from DRE that have an open runway now.
DYOR and GLTAH CW
DRE Price at posting:
1.2¢ Sentiment: Buy Disclosure: Held
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