DEG – entry for STT TA Long
Deg has a market cap 900k at 0.1c and a market cap of 1.8million at 0.2c. Total issued capital is 900million (approx). Cash 404k as per March quarterly, plus 336k received and 100k to be received from Rugby… Will bring cash position to 840k and a resource 6.8 Mt @ 1.6 g/t Au for 345,000 ounces)
Two very strong reasons to buy Geg as it looks undervalued:
1: It has sold Mt Dove to Atlas Iron (AGO), however kept 2% Royalty for if more than 2million tones of ore being produced. Atlas has recently reached that target hence generation of Royalty. Deg has received a payment of 336k on 1st May 14.
2: A $2million jv with Rugby Mining where diamond drilling has started in May which will be carried all the way till end of June with results expected to be available in July. The diamond drilling will be focused on high grade mineralization. Other early stage geochemical targets will also be tested with RC drilling.
Key conditions of the Agreement are:
1) Rugby will pay De Grey $100,000 within 5 days of regulatory approval (approval process to commence immediately and expected to take about 14 days);
2) a three year option to acquire an 80% interest in the Tenements by incurring a total of AUD$2 million in expenditures with a minimum expenditure commitment of AUD$500,000 and a commitment to drill in the first six months (NB: Rugby have indicated they anticipate commencing a drilling programme well before the expiry of that 6 month period); and
3) an option to purchase an 80% interest in the historic near surface resource at Wingina Well for
AUD$3 million, by paying AUD$2 million at any time within 54 months from the date of the Agreement and a further payment of AUD$1million within 30 days of a decision to mine any part of the historic resource at Wingina Well. (NB: Historic Resource at Wingina Well as outlined in Table 1 below is 6.8 Mt @ 1.6 g/t Au for 345,000 ounces).
Deg has kept all rights of Zinc of the same projects and they also have other projects… A market cap of 1.8million at 0.2c looks cheap.
