The mining laws in the Philippines helped made SRM bring in Galeo. They are the best in the country. Its a million times better than being forced into very dodgy JV's in places like Indonesia or Mongolia. Galeo also have a strong relationship with RTG management. You don't have to be a rocket scientist to see this is already heading into being a high grade mine with mine life. The stock price is telling us as it tightens up. Srm did not ' give away' anything, its an earn in, just as is done in oil.. Don't forget, that the resource and gold markets were melted over the last year and raising capital was always going to be painful at 20c. The market was expecting a placement and sold it off, only to get caught out. For Galeo to remove some 1.5m tons of overburden would normally cost srm many millions of dollars, so it makes sense. They would only have to issue stock and raise money to pay for the over burden removal anyway. The Mabilo area is in the same region that RTG management built the largest mine so they won't be having any problems. The area is also almost devoid of people. I think everyone would love the company to own 100% of this and be fully funded, but in the real world, its a great deal for us holders and the rising share price is telling us all that. Dyor
SRM Price at posting:
38.0¢ Sentiment: ST Buy Disclosure: Held
