After discussing this last night and this morning, I personally have come to the conclusion that this does not confirm land access to the tenement. I know that tranche 2 has the condition of successfully gaining land access, but TMG was facing an expiry for the two tranches on January 31st. Any lapse in this contract would have resulted in an unsuccessful acquisition, in my opinion.
We know that tranche 1 was successful, but I have a feeling that tranche 2 has not been successful yet. My theory is that management is taking the risk of handing over the additional $200K for tranche 2 before the expiry date (today, January 31st). This would complete the acquisition and close the deal with Anchor Resources.
If my theory is correct, TMG is essentially taking a gamble with a total risk of $450K, hoping that over the coming months, they can negotiate land access. Given what is in the ground, I think it's safe to say that the potential reward far outweighs the $450K risk if they can secure land access.
The reason I have come to this conclusion is that land access is a major deal for TMG. Realistically, I would have expected to see a price-sensitive announcement yesterday morning before the market opened, followed by the application of securities like we seen last night. In my opinion, gaining land access is 100% price-sensitive, so once again, I don’t believe this confirms land access.
IMO and DYOR.
Slim
TMG Price at posting:
4.5¢ Sentiment: None Disclosure: Not Held
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