"The problem is FMG are probably in no hurry whatsoever to get...

"The problem is FMG are probably in no hurry whatsoever to get the drill spinning. They got the land they were after and for all we know are in no hurry."

Probably unlikely as:

1. FMG have their 19.9% or $3.7M investment in MAG to protect.

2. They have to spend a minimum of $3M in the first 2 years (ie. $1.5M per year) - and this also applies if they decided to walk for some reason (ie. spend or pay MAG the unspent difference).
$1.5M per year to be spent on one area, is probably neither too hard or too easy to spend.

3. There is also a minimum of $6M to be spent in the first 4 years (ie. same pace as the minimum in the first 2 years, at $1.5M per year).

4. Where it becomes "tricky" for FMG, if they spend the minimum in the first 4 years, is that then in the last 2 years, they have to spend $8M, to meet the contracted JV spending.

I'm guessing they will spend more than the minimum in the first 2/4 years, but we'll find out soon I guess.

Drilling announcement/exploration update could come out any day, and hopefully does, and should get the momentum going again and give us something to look forward to (exploration updates, results, etc.).

Also, MAG will get an additional/operator's fee in the initial earn-in period of $600k (ie. 10% of $6M) for being the exploration operator.

Cheers,

GB.