gujarat opportune acceptance letter

Today I was annoyed to read an expensive and crafty written mail out from Arun Kumar Jagatramka, Chairman of the Indian Company Gujarat. I found it full of half truths and innuendo, which arrived at an opportune time in an attempt to unsettle the patience of Reys small Shareholders, using every trick in the book. All designed to bypass any independent valuation, to buy Reys shares for a pittance.

Arun was once a non-executive Director of Rey in its early days and would be fully aware that Reys coal project has of necessity, was delayed by necessary negotiations with the Native Title Tribunal, Kimberley Lands Council and the like. Don't be fooled, he knows Rey is now in the cusp of being a real winner and thats why he wants it. This alone would raise the current share price to many times its current value.

From where I sit, Rey Resources owns a huge prospective part of the Canning Basin, which currently incorporates Coal, Gas and Uranium Projects currently being developed. Indeed Arun himself committed some time ago to expend 4.5 million on Reys minor Gas Project.

Also, Reys Canning Basin Resource is one of the last major under-explored mineral and oil provinces in Australia. Not to mention it is well situated to meet the strong and ongoing Indian and Chinese demand well into the foreseeable future. I suspect that these assets would currently be independently valued at least 30 cents plus a share, minimum.

Probably much more when one considers a very small part of this huge resource (the Duchess Paradise JORC) has a huge thermal coal resource of 511 million tons with a NPV of over $150,000,000. This is only a starting off point, considering only 20 km of a sub crop of more than 300 km has been drilled to date.

More so by the fact REY is currently finalising clearances to shortly commence drilling to add more tonnes to the north and west of its leases. This should substantially increase the Dutches Paradise JORC and its NPV could end up worth billions. I am in no doubt Reys Management (some of whom are major Shareholders) are sensible enough to have this in place, prior to talking seriously to potential partners.

Arun must be getting desperately anxious by the fact that having stalked REY now for over 10 months with few acceptances, if any. I suspect Shareholders in Rey will continue to be far from being taken in by his latest grossly self serving rhetoric.

Be patient and watch this space for other partys interest, as I sincerely believe Rey must be well in the running to receive significantly increased offers.