I am a bit perturbed by these acquisitions although I am only...

I am a bit perturbed by these acquisitions although I am only familiar with King of the Hills, in 2015 ...

"Saracen acquired the King of the Hills and Kailis gold projects in August 2015 for a total consideration for both projects of A$3m cash in two tranches, A$0.3m on completion (paid), plus A$2.7m upon the earlier of commercial production from Kailis or 4 years following completion."

Seems like they basically got it for free then, or maybe take it off our hands (rehabilitation liability I remember SBM treated it like removing a liability more than selling an asset). Saracen paid $300K up front and now we pay $16M... They did some drilling, and increased resources to 470koz in 2016, then it dropped to 400koz in 2017. They mined about 12koz gold but it only paid for development costs.

"During the December half FY17, approximately A$14 million (unaudited) of gold sales were derived
from development activities at King of the Hills. This amount will be offset against the project’s capital
development cost and will not be accounted for as sales revenue."

From what I understand Saracen's plant was closer to the mine than ours will be, and they thought it was not worthwhile to keep mining, although they called it an excellent asset they had better ore elsewhere to keep their mills running.

Then there is something like $26M environmental provisions isn't there? Is RED going to have enough cash to fully develop this, I would see this project as something an established miner with an income would take on.

On the positive side I see there is a resource there now of 400koz, so even if their margin is $100 then that is $40M, hopefully they can do better and get good exploration results. There is also not many other options for RED if they want to stay a gold miner. Any mining engineers here that could look over the gold drilling results and old mine plans?