Looks like they are putting the feelers out, hopefully they can attract some interest in the project. It's far too big for PDY/AGU to tackle on their own. They could never raise enough capital to drill from Telecom Hill around to Mt Padbury and get a measured resource without a major player on board.
They may need to look at breaking it down into at least 3 projects: Telecom Hill, Mt Padbury and the area in between. J/V Telecom Hill first as that's the most likely area to interest someone atm. Any deal needs to include cash up front (say $10m), a sort of sign-on fee. Maybe just get a JORC resource defined and then sell it for $1t for 55%+ ore and $.50t for anything between 30-55%. If there was 20mt of 55%+ and 80mt of the lesser grade ore, PDY/AGU would get $60m for Telecom Hill. The initial cash upfront payment could be deducted from the total, minus the joint venturer's expenditure (maybe another $15m). That leaves $35m to be split 70/30 to PDY/AGU.
$45m might seem very little for giving up Telecom Hill but it's worth a lot more than that to shareholders if it stops the cheap cap raisings.
$10m upfront would allow them to drill without further dilution until the TH resource was known and the extra $35m (or whatever it may be) becomes available.
At the same time the companies could make a start on Mt Padbury and get a rough idea just what may be there. If it's any good then do a similar deal as TH.
They would have money from 2 projects, one in just over 2 years and the other probably in about 3 years by the time PDY/AGU do some initial exploration at Mt Padbury first.
That leaves a large section in the middle to explore and hopefully have enough money to retain in full.
Just thinking of ways to put the past behind the companies and move on. The longer things take the more dilution and other negatives will overwhelm both companies. And the more likely it is that shareholders won't be included in the ride.
I think we will soon find out just what sort of management PDY/AGU have. Are they in it for the quick buck for themselves or do they actually believe these companies have a legitimate future?
Any other thoughts on how to get things moving?
PDY Price at posting:
1.1¢ Sentiment: None Disclosure: Not Held
