Ann: RMS: Ramelius makes strategic investment in Spartan Resourc., page-175

Dalgaranga would be the most valuable/coveted asset housed within a combined SPR/RMS. I do not think anyone would dispute that. RMS has to move sooner rather than later before SPR becomes a prohibitive valuation proposition that would make it impossible for RMS to take on without damaging its own shareholders. Moving now offers SPR holders an immediate one-off sugar hit (of what magnitude is yet to be determined) but I'm almost certain at the cost of valuation destruction to SPR shareholders in the mid/long term. I do not think diluting Dalgaranga's endowment through RMS script serves SPR shareholders in the mid to long term. RMS would have to eviscerate itself to provide a sufficient offering of size that would make sense for SPR to accept. Terms have to take account of what SPR will be delivering its shareholders in 18months time, not a one-off premium from a needy RMS that delivers for the now. $1.20 (a 29% premium) doesn't cut it. That leaves too much on the table for RMS. $1.30 might accounting for the cost of time but I feel even that's marginal. There's every chance we could be trading at that level once we are in steady state production and if we still control the asset (which I concede is unlikely) we would still have Dalgaranga paying out cash in the order of $280-340mil based on current gold pricing a year. I have the patience to wait for that scenario. I hope sufficient shareholders will be able to turn down the carrot that's about to be dangled before them for what's almost inevitably coming in the mid term....that after all is why RMS want it