"Total consideration for the tenement to the vendor, Resolve Exploration and Mining, consists of a back-end vendor royalty of $0.80 / tonne clean coal sold, convertible to a $5 million payment spread over the first 2 years of commercial production in 4 tranches in either cash or Mantle shares at the vendor royalty holder’s option."
The resource contained within Mantle's EL5210 extends well outside of that tenement and is owned by Greenpower Energy Ltd(GPP)on 3 sides and borders the S7 on the other.
Developmental drilling within the Latrobe Valley tenements during 2012 has identified a total of 567mm tonnes of brown coal at mineable depths of JORC compliant Inferred lignite Resource. The company contracted an independent resources consultant Resolve Geo Pty Ltd prepared the maiden coal Resource statement."
Resovle Geo do GPP's drilling.
GPP are developing and testing several BC benefication techs.
I am sure they would like to have the whole resource rather than have Mantle pop up as owners of a chunk of their holding, especially the part that has the highway and rail running through it.
Why did Resolve Geo sell EL5210 to Mantle and not GPP who it seems obvious would be very keen for it.
Are GPP and Mantle potential partners?
Possibly, but IMO no.
Mantle have made Resolve Geo an offer they couldn't refuse based on "clean coal sold" which is linked to Mantle's long time association with GHD and , in turn, GHD's position as the go to consultants for the Vic Gov, and as project contacts for many Chinese Co's looking to get into the LV for BC exports to China.
Come on Tony Abbott, Greg Hunt etc..., lets get this Vic brown Coal Pilbara thing happening!
All above IMO only and DYOR
B Rubes
MNM Price at posting:
3.2¢ Sentiment: Buy Disclosure: Held
