One of two scenarios is possible here:Scenario 1: Dugal IS...

One of two scenarios is possible here:

Scenario 1: Dugal IS successfully vended in:
There will be close to 1 billion shares on issue diluted, including the 250mill freebies + the 250million free ops issued as part of the deal. That will also mean management are satisfied with the due diligance showing a substantial coal resource.

At 3.3c marketcap would be $33mill+ undiluted and (one would hope) a significant coal resource. Next would be a consolidation with $$$ being raised at 20c and off she goes. Could represent a bargain if resource is anything similar to RIV.

Any independent geologist putting their name on any report would want to be just that imo (ie independent).

Scenario 2: Dugal IS NOT vended into RTL:
That will value the shell at $25million+ (at 3.3c) with about $1mill cash in bank. Could be seen as expensive imo.

There will be quite a few people holding the bag on this one if the deal falls over. Once the dust settles another deal (with dilution) would be next imo. Recent 'larger' buyers should control more than 20% combined atm hence messy board games could come into play.

From Announcment:
"Information provided by Dugal indicates that Lower Karoo sediments, which are considered by Dugal to be highly prospective for coal, outcrop along the northern margin of 3245L. A large alluvial covered area in the western part of this concession is also considered to be prospective for Lower Karoo sediments and coal deposits.

Karoo sediments also outcrop extensively in 3246L."

(I notice they were careful not to mention if lower or upper Karoo sediments here for 3246L). So which is it?

I've sold out due only to other ridiculous bargains that have presented themselves over the last week but still closely follow. Not too worried about paying higher prices since it will be for the long haul - but will be sure to study the detail in any future reports before jumping back in.

Cheers,
The Sparkler