I heard this news on ABC Newsradio this morning, but I couldn't...

I heard this news on ABC Newsradio this morning, but I couldn't find the link on its website.

Back a couple of years ago, BHP paid $100m to the NSW government just for the right to explore a tenement near Tamworth that was expected to contain 500mt of coal. The local community has been fighting for their land ever since.

It basically means that BHP believed that the tenement itself was worth of far more than $100m. The coal price has risen substantially since BHP started its exploration.

MNM paid only a fraction of what BHP paid for MNM's Mt. Mulligan tenement, you have to hail the board for what a bargain they have grabbed for us.

Given that MNM expects a similar tonnage of coal deposit in Mt. Mulligan and the access agreement is not far away, it's not rocket science to work out how much MNM should be worth, even if you take into account a possible equity interest that might be given to the traditional custodian. (just a possibility and my guess only)

In another word, MNM could just sell the tenement to another party and grab roughly $100m. (I do not take into account the location and quality of coal when comparing this with BHP's tenement)

Cheers,