Ann: Sale of Mt Gunson Copper Project, page-3

Hi Danny

I'm slightly mixed on this but on balance positive in the circumstances.

Firstly I am supportive of selling non core assets, if appropriate, ahead of capital raising at this low price. It is less dilutive.
My order of assets prior to this would have been:
Tanzania
Fowlers Bay
Mt Gunson
Coburn

I had Coburn last on the basis I think it is completely bogged, possibly irredeemably. If there was a funder in the wings that would definitely be reversed. At Mt Gunson the mythical copper whale might as well not exist as far as I am concerned but the small known deposits that Torrens have been working on are potentially lucrative under their technology and on that basis more likely to develop for us than Coburn.

So on bird in the hand principles I would have sold Coburn before Mt Gunson. However realistically we were never going to mine the copper at Mt Gunson ourselves, not without large dilution anyway. By retaining exposure and getting some cash I currently think the company has probably made the best out of a difficult situation and puts us not too far off where we might have ended up anyway if we were moving ahead with the Torrens JV. Hopefully that decision to mine comes quickly and we get the withheld $1 million before we need to raise more capital.

Interested to hear other perspectives - some long term holders were more strongly committed to the Torrens venture.