Feels like an attempt to drive the VWAP. But it is good to hear...

Feels like an attempt to drive the VWAP. But it is good to hear that discussions are underway re potential divestment.
I don’t mind Bresnahan as an exploration project…but given DRE’s situation something needs to give. I originally raised my concerns back in 2022 when they started pegging the ground that the ‘potential’ commitments were starting to get quite large. Which while in the application stage it’s not a real issue, and then while we had a decent cash balance its also ok…until it isn’t.

As of today the granted tenure at Bresnahan has an annual minimum expenditure commitment of $634k plus 84.9k in rents. Keep in mind that there are still four pending EL’s, applied for ~mid 2022, so I would also anticipate seeing them granted in the near term. When that happens, the total minimum expenditure commitment for Bresnahan becomes $1.23 million and $165.3k in rental fees.

That’s no small sum, particularly when you add that into the other holding costs for the other projects. So there really does need to be some rationalisation of what is realistic to retain…what is currently delivering/underwriting value vs where is the best opportunity for discovery. Who knows, strategically in the long run maybe this is the one to keep based on the U-potential at a macro level, I don’t know. But either way, I don't think I would loose sleep if this was sold or JV’d out.