investor presentation question., page-8

Well junior companies that are successful at a project often spin off their other asset, or vend them into other companies with a retaining interest and shares in the other companies.

Reason being they do not have sufficient resources to progress these other project when they are focussed on a large development project.

Another company I own, Vital Metals, is an example of that. Not a spinoff but they shares a director with Ampella. When Ampella deveopled a large resource at Batie West, it could not focus on its other project so it was vended to VML for shares. A good move for both companies.

Spinoffs are a common approach for this reason.

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