Appears to be a good move by ARE ... sound and pragmatic!
ARE has 3 year agreements (which commenced 22 February 2010) with the Laotian Government to explore and prepare feasibility studies in the following 2 areas :-
1. Xekong (ARE to commence drilling in early January 2011) 2. Century (as per today's announcement)
So, in effect, ARE has about 2 years remaining to satisfy the Laotian Government with its intentions in these 2 regions.
And with all the "dizzying" announcements of late, ARE would neither have the time nor funds to fully explore Century. So even if ARE is left with 19% of Century after the earn-in, it will be a far better option than getting 100% of nothing ... that is, it would almost be a certainty that ARE would lose its exploration agreement for Century by doing nothing in the next 2 years!
And let's not underestimate Gutnick ... an astute businessman and entrepreneur ... has been around for a long, long time ... has had quite a rollercoaster ride in the mining industry over the years, with quite a few successes.
In fact, it wouldn't surprise me if ARE and Gutnick also do a deal over Xekong in due course.
ARE Price at posting:
12.8¢ Sentiment: Hold Disclosure: Held
