Thanks for following up and reporting to us
@Bazz88. Also thank you for pushing for additional messaging for the market.
Something felt a bit unfair about that deal on new tenements around Empress Springs. Just the idea that we can peg something and automatically lose 51% of it, But, thinking about it further, IGO were privy to the same information as us and could easily have pegged the additional areas themselves. So clearly the deal allows everyone to swing together behind MOH as the current project managers. So, I'd say my initial concern was incorrect.
Also there are some really good aspects to the deal - eg
- it commits IGO as a major funder if the right PMA (Potential mining area) is defined
- has the ability for MOH to ultimately option to be free carried for 30%. That's a solid share for a junior, especially if a major (very expensive capex) project is found
- and, also that tenements outside the PMA will remain under our management, presumably until further PMAs are identified when the same benefits of the deal would presumably accrue.
I think that Empress Springs shows potential for several mining areas. It could be a very lucrative structure for MOH, working off the back of IGOs balance sheet and expertise.
In that latter context, I think I'll be disappointed if we only receive $8.5million in the event of a buyback. The buyback is based on market value or otherwise 3.5 times expenditure ( a whichever is greater type clause). If we find "the Olympic dam of gold" as Jon Hronsksy speculated is possible, then market value will considerably exceed the 3.5 times expenditure multiple. So $8.5 million would infer the potential mining area involved would only have a market value of a touch over $17million at the time ($8.5 million divided by 49%) - not a particularly significant project.
Burracoppin. I'm not holding my breath on those cores. Visuals weren't encouraging for assays although you don't know what gold is locked up, away from visible eyes, until assays are done. I'm viewing them as structural studies to understand the lay of the underlying geology - which in turn will hopefully allow for intelligent decisions on next drilling round.
