At today's share price they are paying the equivalent of about $1.35M to acquire the land.
If they prove up 1Moz of gold (given the gold price is $1,350/oz you do the maths on the IGV) then they cough up a further $2M (again the equivalent of at today's share price).
Sure it will dilute holdings, but they retain cash in the bank to explore the resource and the dilution is more than offset by the potential rerating of the business given a good JORC figure.
RXL Price at posting:
6.6¢ Sentiment: Buy Disclosure: Held
