A different strategy may have been warranted......
You have got to wonder whether these guys wouldve been better off buying a slice of REED Resources and getting a decent offtake/toll milling agreement in place...$30mill wouldve got a big slice of the company and a hell of alot cheaper ($/t) processing option just down the road.
GNG cost + power plant + TSF construction (nd other costs associated with plant)total cost of maybe $40mill. Based on 800,000t of ore and 340,000 ounces of contained gold in reserves the luxury of a company owned processing plant has cost the company $55/60/t or + $120 an ounce, in capex alone.
Could've avoided alot of dilution/risk/complexity. Hope they find heaps more ore to justify the capital investment decision.
DRM Price at posting:
76.5¢ Sentiment: LT Sell Disclosure: Not Held
