On first glance this looks like a very good farm in and joint venture for ORD. The way it's staggered for funding over 24 months gives ORD some time to come up with the money, although I am concerned that the initial capital raising will be somewhat dilutive for the first $2m within the next 9 months.
Kind of strange though, DAU is more cashed up than ORD at present, with $3.6m at end of last quarter less proposed spending of $720k. ORD had $748k at end of last quarter. Although that said, with Laos as a possible sale at someone, ORD could be said to have stronger prospects to raise the full amount proposed to be spent for the 75% within 2 years.
It's a good looking little project that has room to grow, and I reckon ORD is getting in at possibly the lows of the gold sector ( let's hope!) this could be a catalyst for growth in ORD.
VAN Price at posting:
0.7¢ Sentiment: LT Buy Disclosure: Held
