mnm & the lv

http://www.latrobevalleyexpress.com.au/news/local/news/general/valley-boom-prediction/2497653.aspx

Going by this article exergen has to be at the front of the queue for the new LV coal allocations announced this week.

It looks like a safe bet that exergen will have their choice of dirt in the S7 given they are clearly the favoured tech operator with the BCIA judging by them receiving the largest grant from them in 2011.

MNM pegged 569 sq km adjacent to the S7 area in 2011. Why? It has just sat there so far - an unused ocean of brown coal.

The reason for MNM's LV land grab now makes perfect sense. If exergen do get first pick of the S7 that has been unlocked this week then they can probably take the part that adjoins MNM's tenements. This would allow them to form a super tenement of around 1000 sq km that runs straight to the door of the existing power stations, and is also bang in the middle of any future rail link to the planned Ports in Gippsland.

This tenement could hold 6 billion tonnes or more of prime grade brown coal.

If exergen merges with MNM (before or after) it gets its allocation in the S7, and funding for CHTD plants at BM and LV are in place through exergens massive backers, then the combined (and backdoor listed through MNM) entity could command a multi billion dollar market cap on the asx on listed coal peer comparisons with similar scale resources such as Macarthur Coal.

For exergen's key financial backer Dale Elphinstone this has to be the obvious end game.

He made several hundred million dollars the last time he did exactly the same thing:

http://www.businessspectator.com.au/bs.nsf/Article/RICH-PICKINGS-Gas-merchants-FC4UJ?OpenDocument