The purchase price for OZL's JV share of $6.6m plus up to $US 8.8m in a royalty on production between 200,000 and 300,000 t Cu is an interesting transaction structure, I think to share risk and reward.
Jericho's existing reserve is about 127,000 t Cu, with the orebody open at depth and in both directions.
If the drilling program doubles the orebody OZL gets something, though if a new orebody is found on these very extensive and fecund tenements, OZL's gains are capped.
I know y'all want a bottom line, a final figure, what is Dimetallica worth, but there are too many unknowns.
The open questions on Dimetallica ought to be answered in the demerger documents, expected this week.
Note the orebody update at A1M's Eloise today. Things are brewing.
Ash
MEP Price at posting:
18.0¢ Sentiment: Buy Disclosure: Held
