Just thinking about this one. Do you realize it has huge value to a big company who has no intention of working it for ten years say.
Lets assume for sake of argument that somewhere inside EKM's tenements there is another tropicana.
Now say you owned Tropicana. And lets assume Tropicana has a ten year life expectancy. No science - just a figure I am using.
Now with the shortage of new large gold deposits around the world you could either buy all of Eleckra and not work it until Tropicana runs out. As a company it gives you a future production strategy and keeps EKM's gold off the market when you are trying to sell yours.
Alternatively you could do nothing and find yourself competing with a neighboring gold supply which with basic supply demand economics would dampen your gold price and when your mine is worked you have nowhere to go.
What makes most corporate sense?
EKM Price at posting:
38.5¢ Sentiment: Hold Disclosure: Held
