Hey Gruba,very happy with the move. The ounce will be profitable...

Hey Gruba,
very happy with the move. The ounce will be profitable for both OAU and WGX and won't take forever to get into production.
I can see zero downside of either party, though of course with any agreement there are trade offs (OAU dive up some of the extra profitability, but... bring production forward, WGX will make less margins, but enable their plant to process at higher rates).

Extra benefits flow on later, like OAU being cashed up and wanting to drill more targets, more success, more toll treatment deals, more wins for all shareholders. I don't think there is much of a benefit for WGX to acquire OAU, in the sense that they have much larger operational goals to achieve (i.e merger with Karora, and the other growth avenues that will be available to the company once merged). In fact, it might actually be counter intuitive, because if WGX did for example T/O OAU, it would likely reduce drilling and just focus on mining the deposit...

I also expect WGX to do similar deals with the other small players in the region if they are willing to be reasonable (I have a feeling that the MD of OAU is... a realist and was brought into actually see the companies shareholders achieve some tangible gains, versus simply the same old M/O of drill drill drill... dilute... drill etc.

Just how I see things.