Another one I’ve mentioned before is Traka Resources (ASX:TKL), which has been trading in that 2c to 2.3c range.But significantly, Medallion Metals has lodged a prospectus for its IPO in the last couple of days.Traka has a lot of ground in and around Medallion, which has come out with a feasibility study based on 8.5 million tonnes at 2.3g/t for just over 600,000oz, about a 5.5 year mine life and looking to sell about 320,000oz over the life of mine. So pretty small scale.Traka, meanwhile, is gearing up to do some fairly aggressive exploration and we expect them to be drilling fairly soon.I think there’s some potential M&A activity or some sort of deal if Traka can outline 100,000oz to 200,000oz.I think that will mean something to Medallion having a plant being constructed right next door. It will potentially provide a processing option for Traka’s deposits should exploration be successful.I think Traka at around 2c-2.1c is pretty cheap and I think it’s going to move back up towards 3c over the next couple months.
TKL Price at posting:
2.3¢ Sentiment: Buy Disclosure: Held
