Yes two deals – an attractive entry into gold in Colombia and funding full development studies at the large long time Calatos copper project - would buy MNC a seat again at the table? After years struggling in the cold outside. Though here constructive rational behaviour (technical and corporate) by the player means much better odds than at a casino?
These deals, if and when consumated, would be the most portentous transactions for the Company in about 10 years.
Perspective. MNC’s management has often been criticised in recent years by frustrated unhappy shareholders, during the long (4 year) share price slide. Fair enough. But this needs careful assessment. In the mining exploration and development game you play the hand you are dealt and arguably MNC has played a difficult hand better than most. In Chile and Peru it established a large portfolio about 10 years ago, but then faced a succession of challenges.
First was cleaning up corporate ownership of the assets, which was not easy. Then from late 2008 the commodity and resources equity markets soured and stayed sour till now. Third, after a promising start, the assets proved tougher. Thus Calatos has proved large, and is very well located for development, but (after a couple of very good early holes) it has not proved a bonanza. But arguably for a junior explorer MNC has done a sound technical job at Calatos, having to work at unravelling the geology and mineral resources, and at extracting an optimal development concept. But here they seem to have made progress. And then, very frustratingly at Mollacas, Chile’s legal system has proved less reliable than expected.
So MNC has since looked wider afield, seeking a prospective near term cash flow asset they could manage, develop. Easier said than done though and it’s taken years to put flesh on the approach. But to their credit they persisted, and apparently resisted earlier opportunities which had technical deficiencies. Now perhaps the Company’s luck has changed and in Colombia they have a robust digestible near term mine development on their plate, and also,importantly, meaningful prospects for substantial exploration success which could (again) transform the Company.
Arguably too, despite the rocky road in recent years, MNC, for its size, still has a Board and management which is relatively strong in terms of its corporate and technical skills.
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