Because I have finished my jobs for the day (hope the welding was successful), I think the optimal outcome for the 3 small players in the Northern Murchison is as follows.
MEK sell their Gwaneeda asset (open pit and low grade U/G) to WGX for script, to enable them to fund the upgrade to the Andy Well plant to perhaps 600ktpa. Then... merge with GBR who by then will hopefully.... have Mulga & Iron ready for mining, and finally, toll treat or acquire OAU. To create a 80-100k p.a. high margin gold producer (the only way to be success for the small caps is basically mine high grade, otherwise everything is just too risky).
I just don't see a 1mtpa plant being built on any of MEK/GBR or OAU tenements, when there is a big hungry mill nearby, just does not make sense, even if all the small players want this to happen.
I find it a stretch to believe both MDs would stay with any merged entity.... who's going to take the pay cut?
Point 2 & 4 are good and agree with.
Point 3 could work, but... so much would have to happen to have a new plant built... I mean years.
I find it strange that small cap's don't try and provide the market with a clear plan, even if it's not the one they eventually go with... Out of MEK, GBR and OAU, I feel MEK has been able to best articulate possible production options. Though still 2-3 months away from anything happening due to permitting.
Good luck to all holders though, hope you find a few more high grade lodes and then it will get snapped up.
OAU Price at posting:
0.5¢ Sentiment: Hold Disclosure: Not Held
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