A very valid question, I can certainly understand peoples...

A very valid question, I can certainly understand peoples scepticism. However, the reason being is a lot of smart operators will vend themselves into a deal. What I mean here is that they may not have the experience or expertise to carry out the necessary geological works to advance the project any further but still want to retain upside in the project in the form of shares. As alluded to by our management, the drilling to date has been sporadic and therefore didn’t assist the previous owners with identifying and defining the high grade zones. It shows a level of inexperience and thus probably why they were keen to do a deal. I agree with our management on that point.

The main consideration in this deal is the 80 million shares the vendor will receive if the due diligence is successful (which in my opinion is highly likely and that is why I bought shares in this company). I also bought shares here because of the risk vs reward proposition, your downside is limited to the cash at bank but the upside is enormous. Can’t believe some people were selling at 3.3 cents a month ago, oh well I guess someone had to step up and buy them. The seller has effectively managed to retain their upside, plus ensure the project is further developed and explored properly and also gained liquidity in the form of shares listed on a reputable stock exchange. The last point should not be underestimated in terms of its overall value proposition.

Why not do a deal with BHP or others as you have mentioned because most times they will simply offer you cash. It is BHPs way or the highway, they don’t need to do a deal with you, it is a take it or leave it cash style offer. Why would you want scrip in BHP when you can gain scrip in a small company. Why are you invested here and not BHP, well the answer to that question is which company has more potential to triple in value, the company that is worth 205 billion or the one that is worth circa 25 million, I think you get the point. To some, it is a surprise when opportunities like this are afforded to smaller companies but not me as for the reasons outlined above. I am expecting a re-rate is in order in the next few weeks. Cheers, CP.