OZL & Minotaur

Today's MEP Quarterly report says:

"Partners in the Eloise Joint Venture (OZ Minerals 70% and Minotaur 30%) have developed an indicative and non- binding Term Sheet for restructuring of the joint venture, which Minotaur anticipates should lead to a binding agreement within weeks. Until such time as a binding agreement is consummated there can be no certainty that the proposed new arrangements will eventuate."

This restructure, weeks after OZL committed $10m to drilling - and before drilling results are known - is surely at the instigation of OZL.

I have been gesturing at the DMR Eloise mine 3km away. DMR, a private company with no obligation to reveal its reserves or grades, I surmise is now processing lower and lower grade ores after many years of operation. It will be cashflow positive but not particularly profitable. Economics dictates that if the MER Eloise orebody is usefully higher grade, DMR's concentrator ought be deployed to process it.

In other words, MEP's Eloise orebody already has a mining camp and concentrator built and is merely awaiting a corporate reorganisation with DMR. Accessing the shallow deposit >300m deep looks a straightforward engineering exercise and Bingo! a new operating copper mine springs into existence.

This would be the work of months, not years, with permits likely the slowest element.

I hold both OZL and MEP, so am utterly conflicted when I say: "This baby is going to blow!"

Ash.