The story on Red Dragon was created by Phil Crabbs desire to find another major gold discovery. Although he was a Director of THX the way he went about finding that discovery obviously did not fall into THX plan at the time. He approached friends and family to raise funds for grass roots gold exploration. Pegged numerous claims, did grass roots soil and geology exploration, kept some areas dropped others. This went on for a couple of years.
In the Meekatharra area he was fortunate to be involved with local prospectors and claim owners, one in particular helped him consolidate in my opinion one of the best unexplored areas left.
It got to a stage where the capital needed was too much for the existing shareholders, keeping in mind I have been told that PHIL Crabb and another shareholder were funding most of the costs in the later stage.
So a decision was made to either float the company, back door it or sell out.
The decision to give THX first right of refusal was on Crabbs insistence. If THX did not take the company others would have.
So that is the story I have been told, hope I have not offended anyone by passing on the story.
I can appreciate shareholders concern at the time owing to the close relationship between directors of both parties, I felt at the time it was another string to the bow, especially if RB was a dud.
THX Price at posting:
4.5¢ Sentiment: Buy Disclosure: Held
(20min delay)