Transformational – Pros Part 3 Assets and conclusion, page-11

I like the question Falcon, it's all about attributable value.

The short answer is Yes.

Trying to but failing to briefly expand (apologies forum readers). From the information we have, the Strandline assets cover a huge amount of ground that follows a trend through several proven projects starting with Australian company Base Resources 262 mt at 3.7% HM (a higher grade albeit smaller resource than we have at Coburn). On the limited information available to me it seems good odds that Strandline are going to uncover significant resources - they have the right ground to explore and the their team has done it before.

I'd like to pay less than $2.5 million all scrip too but if my reading is right then $2.5 million will turn out a very good price. If we can get $3 million into the company (what other juniors can achieve that in this market) then it will already have paid for itself.

In your earlier email you raised another good question about a change of direction. I don't see it as a change of direction but I wouldn't care if it was. I'm in GUN because I think it has good assets that are chronically undervalued. I want value to be extracted from them and I don't really care how or what direction is necessary to do that.

The intention here is stated as clearly to become a minerals sands producer. That's not a new direction, we've been on that path for a decade but now BB has brought together a team with the necessary skills and experience to do that. Before now I would have been quite happy to trade Coburn away if that was a sensible tactic to advance value.

Considering the other projects and your worry about selling them off. It is a fair question. Given the diverse array of our assets it is not sensibly possible for GUN to aim to be a producer in all of them. A junior is not going to be good at mining and selling sands, copper and maybe nickel in 4 different and disparate locations. The strategy being executed at mt Gunson and hopefully Fowlers Bay is to bring in partners who will be the producers for us. If our partners can come up with the goods we will have the luxury of choice as to how much we want to participate - it is conceivable we could allow ourselves be further diluted to a minor but lucrative dividend paying position in the future. Even so I have confidence that if the decision ultimately is to divest it will be after genuine value has been added for us. This too is not a change when you consider our previous farm in partnership at Mt Gunson with Xtrata.