There was a good article re the rationale for IGO to get involved in NCZ. It’s basically an option play for IGO. Too much risk for them to be involved directly with Goro, where if it blows up they can easily walk away from it with just the “option fee” of $20M lost worst case scenario.
"Our primary motivation for going into New Century was the early work they were doing on Goro, and because of COVID-19, it made it more difficult for other participants to get to site and do some of that necessary due diligence," Bradford said.
"We did the work we needed to do and decided the risk/reward framework wasn't right for us. If everything goes to plan, you'll make a motza, and it's just as big on the other end.
"The investment in their shares was really an option fee to be involved in the Goro bidding parade and as a secondary opportunity, we also have the opportunity to work with New Century in some of the exploration in the assets around North West Queensland, and that's a work in progress."
NCZ Price at posting:
18.5¢ Sentiment: Sell Disclosure: Not Held
