This is an outstanding opportunity - to the scale of Sierra...

This is an outstanding opportunity - to the scale of Sierra Rutile - and it will be a low capex and very low opex, world class rutile operation that is going to bought for a massive premium by Illuka et al. They simply cannot afford not to control this massive rutile province if they want to protect their market share and protect market prices. The longer they wait to acquire, the more they are going to have to pay - so things may kick off in the near future.

To remind everyone, Iluka paid close to A$450 for Sierra Rutile when the mineral sands market was weak. We are moving into a market shortage phase and there is not reason why they won't pay close to this amount for SVM.

This is a 10x investment from here and the market will soon wake up to the scale, quality and compelling economics of the project. Get in whilst it is cheap.

Iluka confirms $375m Sierra Rutile takeover
Stuart McKinnon
The West AustralianMonday, 1 August 2016 12:25PM
Stuart McKinnon
Iluka Resources has confirmed the $375 million takeover of London-listed, Africa-focused miner Sierra Rutile.The company will offer 36 pence cash for each Sierra Rutile share, valuing the company at about £215 million (A$375 million). The target's board has backed the offer, but it is still subject to shareholder approval.Iluka would also assume the company’s debt of about $US60 million ($80 million).Iluka said the acquisition would double its rutile resource base and secure ownership of a mineral sands operation in Sierra Leone that produced 130,000 tonnes of rutile with expansion potential up to 240,000 thousand tonnes a year.The company said the acquisition would not affect its ability to fund internal projects such as Cataby and Balranald.Iluka chairman Greg Martin said the transaction was consistent with the company’s approach to act in a counter-cyclical manner where appropriate.He described it as a logical combination of complementary businesses during the prevailing weak mineral sands cycle.“The acquisition of SRL along with current Iluka project progress provides the potential for enhanced portfolio flexibility which will in turn determine the level and phasing of Iluka’s future capital expenditure,” he said.“Iluka will continue to prioritise the maintenance of a strong balance sheet after an expected peak debt in 2018 as internal projects are also funded within that period." Managing director David Robb said SRL was a long life operation with an established position in high-grade chloride feedstock markets.“Iluka is confident the application of its industry-specific technical expertise, together with its market access and reach will enhance the SRL business,” he said. “The combination provides Iluka with additional, long-life (20 years plus) resources of proven quality, with further potential through resource additions, reserve optimisation and exploration.