Finally!!! Looking at the details I am not sure if the price paid provides immediate scope for a re-evaluation in Lion's interest but it does more importantly give the project the green light to be advanced.
I have been waiting for this day for a very long time. My favourite set up in the junior mining space is when junior companies can maintain minority JV interests in potentially world class deposits. Two past examples which come to mind include Independence Group and the Tropicana gold project and Tribune/Rand Resources and the East Kundana JV.
This now becomes my favourite company in terms of potential upside.
Merdeka Vice President Director and CEO Simon Milroy said “We are pleased with the transaction which allow the joint development of the combined resources in Pani. With majority interest in the combined Pani Gold Project, Merdeka plans to accelerate the development of the project by commencing drilling and feasibility studies. This project is expected to become a long-life and low-cost gold mine with the potential to have annual production in excess of 250,000 ounces of gold for more than 15 years. Ranking the project among one of the largest by gold production in the Asia-Pacific region.
LSX Price at posting:
46.0¢ Sentiment: Buy Disclosure: Held
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