From todays newsletter which you can freely subscribe to on the...

From todays newsletter which you can freely subscribe to on the website. Cash flow of 30 to 40 million per annum, if they can pull it off, is pretty amazing for a company with a
market cap of 10 million currently. Low capex is appealing also.

Anova Does a Smart Gold deal

There will also be special situations where companies
acquire assets via smart M & A transactions. One such
transaction is the purchase of gold resources in Nevada,
USA, by Anova Metals (AWV). Anova was originally spun
out of Navigator Resources as Kimberley Rare Earths but
the collapse of interest in the rare earths market has
caused a change in direction. After considering dozens of
project opportunities AWV eventually chose one that
takes it into the highly productive Nevada goldfields in the
USA, being the most mining friendly state in the USA. It
settled on the deal last week and it has just started road
showing the deal.

The economics of the Big Springs Project are compelling.
Anova currently has a market capitalization of $14m and
1.2 Moz of gold, with $3m in the bank. It expects to be
able to commence production in 18-24 months, which is
the time required to permit the mine. It is targeting 50-
100,000 oz p.a., which could results in cash flow of $30-
40m pa. The unique feature of AWV is that it can treat the
ore in a nearby mill owned by a third party that is
desperate for ore. This means that pre-production capex
could be as low as $10m. Contrast this with another
company in West Africa that is looking at spending $150m
to achieve 75,000 oz pa. Anova doesn't face the financing
cliff confronting so many others. While Anova is still a
small company, we expect that this will change; from little
things big things grow.