I know it sounds doggie but IMO its a better deal than Gillard's 40% MRSPT.
The deal with Namibia Rare Earths (TSX:NRE) basically says: "Explore as much as you like - you can have as many mining licenses as you want - as long are we get a slice of the action (10-20%). We don't want any profits, you can keep it all until we have paid for our share (most of it anyway)".
But the main benefit is Epangelo provides the workforce. The biggest problem with all our miners in Africa (including Rossing) is you get screwed by the unions and the labor hire companies.
Just look at the chart of PLA to see what I mean. (Blackmail, death threats, murder, hijackings, - you name it). I doubt that will happen with the Nam gov in control. They will just put the union boss in jail and sack anyone who complains about it.
Anyway, it looks like the Nam Gov and CGNPC are already mates! But I suppose it still does not stop RIO, Uranium One, etc. from counter bidding as long as they agree to the same deal, which they would of course.
EXT Price at posting:
$7.83 Sentiment: Buy Disclosure: Held
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