Recent Tenement Acquisition

I wanted to shed some light on a recent announcement that may have slipped under the radar for many. Ref announcement titled: "Option to acquire tenement application adjacent to Eastern Goldfields gold, lithium and REE projects".

There's one aspect that seems to have been overlooked based on the market reaction...

The tenement was not just any moose pasture. It was, in fact, a hotly contested tenement, with FMG and Hancock Prospecting pegging it simultaneouslyon its lapsing which would typically have resulted in a ballot had the company not had priority.

This is noteworthy because FMG and Hancock obviously employ some of the best geologists in the industry and if you look around at applications they don't stake claims willy nilly without solid geological justification. This reasonably suggests that there's significant potential value here. Maybe something the company will be able to highlight once the option gets exercised if not before.

This potential isn't just limited to this tenement either. The company has other tenements, including the last one, which also appears to have been high demand from global majors in similar circumstances.

As a side note, the company's balance sheet is stronger than some may have concluded, thanks to the "fuel money" from the R&D and EIS as well as the recent placement (precluding the upcoming entitlement issue). This makes the company's current valuation seem fairly cheap.

Hopefully, it's a case of lining up all these ducks, and soon it can become the overnight success that Alan Kelly has previously made, especially in this strong gold price environment.