Ann: General Security Agreement, page-748

When i spoke to linten, he couldn't go into the any great detail, but the decision to purchase AME was questionable at the time as they wanted to go at this alone (they still do) and aren't open to discussion till maybe the end of the year depending on what they find (I get that). So therefore any possible future deals with AME could never have been banked on, so don't know why the hell they acquired the shares, perhaps they know that even with exploration success that AME still wouldn't have a large enough resource to go at this alone...

Regarding WGX or any other producer with cash, both projects would be a good acquisition because they could make it work as they have a lower cost base with their own fleet, labour + expertise. I think AME just want to define a bigger resource to sell it for more.

There were a few things that caught me off guard, such as the reduced feed throughput and higher then expected other capital cost, which usually isn't a problem on bigger deposits/projects (1Moz+). Would never have expected it to aggregate more then triple the refurb plant cost..... I'm suprised BCN were able to pull it off back in 2018 and we weren't. strange.

So i can see the problem they are faced with now. The project needs to be bigger and they need some higher grade feed early. Because it's a contracted out operation and no self delivered the progress payment cycles are very front end capital intensive hence the negative cashflow for a long period of time. It isn't over yet but it won't be easy. If they fail to secure any third party deposits, there could definitely need to be a merger or sale. Or a lowballed TO and we are not really in a position to negotiate.

The answer your question. If they cannot sell it. Next thing to do is to wait till the gold price hits $2800-$3000 aud and sell some contracts forward. This is abit of a hail mary because who the f* can predict this and they'll need the cash to stay alive long enough.