Morning all.
@line of cobar
Hey mate, I can't give an answer without referencing some other companies in the nearby vicinity.
As I understand it wgx hold 12.24% of ame.
A while back there was speculation that that ame and mdi would do a merger.
There was a difference in opinion of value.
If I am correct it was ame that could see a higher value than mdi were willing to accept and the deal fell apart.
In retrospect, Matt Bowles needs to be given some respect for the determination and insight to foresee the value he is unlocking in the neighbouring Sandstone deposit.
Mdi decided to off load the project to aun and concentrate on the Georgina Basin or Crosswinds project.
Crosswinds really looked like a walk up drill target success but it looks a little more difficult than first thought.
If aun start having the successful exploration that ame are having there could be value to unlock.
When the study was done for a refurb of the Sandstone plant, a requirement was that they needed 1m oz.
They didn't have that and the cost to refurb was prohibitive hence why Matt B didn't see the value that mdi wanted at the time.
I don't see any M&A with the sandstone project unless they find more goods.
On the other hand, wgx still have a 12.24% or so holding in ame.
If there was any M&A, it will be with ame imho.
The cost to restore the plant that aun hold will be a mothball unless they up the resource and improve the economics.
Ame on the other hand will no doubt exceed the 1m oz neede for a stand alone project but the real fireworks could come from that deposit.
One must keep in mind that ame have had several attempts at a TO with no luck for the potential acquirers.
I would be keeping a close eye on the exploration success at ame and namely those that Matt speaks about in the latest vids, Below the two Lords and the north end of Indomitable.
The story at ame is the one I am watching but the whole space could have more potential.
Hope that helps and if anyone has more facts on the matter, please contribute.
Kind regards, Wack
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