The deal with Gina is a massive endorsement on the field and geological work done thus far at Linderos and is also indicative of the appetite for mining in Ecuador as a jurisdiction.
I have heard our CEO mention in several interviews about majors doing multiple tours of our assets. Eventually we saw Gina pounce for Linderos. It is the work in the background that made Linderos attractive enough for Gina to commit US$120m.
It's pleasing that the company is moving fast on upgrading the JORC Resource at Dynasty. We have a strong cash position and we will not be in a desperate situation where we get low balled by one of the majors because of a low cash position.
I have some communication with the broker my father uses, and he has mentioned that Goldfields has been showing interest in our assets. He thinks Newmont may also be interested. Interestingly our head of exploration, Mike Skead worked for 2 companies that were both taken over by Newmont who through acquiring Newcrest own part of Solgold and Lundin assets in Ecuador.
Lots of M&A action in the news recently, and if we can get Dynasty JORC Resource upgrade to 4 or 5m next year hopefully with gold at record prices, we could be ripe for the picking.
All speculation and talk for now but with potentially growing our existing 3m Oz JORC Resource and completing some de-risking studies, being free carried drilling at Linderos, things are looking pretty good. Throw in a proven team that's done it before and a proper look at Copper Duke next year and it's even better.
TTM Price at posting:
40.0¢ Sentiment: Buy Disclosure: Held
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