The deal would be good for them if they could get their ' grades ' & potential first Maiden tonnages up for the Mongoose project. Which is why they have embarked upon this 24 hole , 3,000 metre program to test the ' proven extensions ' to the Taipan / Paddock Load deposit / mine ...
Remembering that out of this $40 million ( actually closer to $56 million ) , only $6 million is payable for Cloncurry ' CopperCorp ' tenements which include the Great Australian & Taipan ....and Paddock Load tenement ( see below Map ) .
So as I understand it , the payment for the payment for the 3 CopperCorp tenements of the Cloncurry package including the Great Australian & Taipan et al are comprised of $4.8 million ( including 2 x $2 million 6mth & 1 year anniversary payments ) PLUS a further $5 million of ' Deferred ' payments which are directly linked to project performance.
These ' performance ' based components are comprised of ONE OFF amounts of $1 million for production of commercially saleable ' quantities ' of ' Quality ' ore , a further on the achievement of 6 month continuous production of saleable ' quality ' ore ...., and another a further $2 million 40days after the company establishes a JORC equal to or greater than 20,000 tonnes of copper equivalent grade at 1% per tonne or greater.
So potentially if the CopperCorp ' Round Oak ' component of its Cloncurry deposits ( namely Great Australian / Taipan or Paddock Load ) is the project tenements that gets to that sort of ' Tolling ' tonnages first , then the Cloncurry comparison could be valued without the additional 2% net smelter royalty ( being gross revenues LESS allowable deductions ) , a TOTAL of $9,800,000.
So if the $9.8 million is ' Split ' across the 3 Round Oak tenements in the NEW entities package , the individual amount could be argued at an even amount of $3,266,667 each.
Where it then gets the more interesting is if Mongoose proves out to be a BIGGER extension with higher grades which virtually sits on the ' fence line ' of these previously mothballed deposits. So one could see then the typical ' Sum Total of the potential economic Parts ' becomes greater than the whole type scenario potentially unfolding from here.
And what is equally interesting for me here is that Glencore who is the larger venture partner with Renegade had for whatever reasons decided in January to ' Excise ' the Mongoose tenement from the overall Carpentaria Venture.
Was this done as a ' Carrot on a Stick for Renegade , or a ' Throw you a bone ' type move . Whatever the case was , why JUST Mongoose..... Most of the time when these sorts of deals occur from left field with a helping hand of a LARGER venture partner , it usually spells out as a potential ' Company Making ' deal in the end.
I'll let everyone else here be the judge though in terms of some of the historical players who have transacted previous deals for these packages including EXCO and Soul Pattinson .....Ivanhoe mines et all which had changed hands for many hundreds of millions of dollars previously. However , one only has to review some of the older Map's and distribution of tenements and names to get an appreciation of why this posturing was the case around the likes of Ernst Henry and Mt Isa districts. Because there is so much continued potential here with the geology.
And you can see by some of attached Geo Maps showing the East - West trends which are likely to result into the Mongoose tenement , and which could result in ONE single MASSIVE ' Super Pit ' greater up to 1 kilometre East / West x at least 500 metres North/ South which would take into account Taipan & Paddock Load deposits.
You can also compare some of the historical results from the EXCO days which highlight the grade and potential of the Taipan deposit as follows.
Given that this proposed transaction with True North and DEX will not be completed until May 2023 after shareholders approval proposed for April which includes the completion of an Independent experts evaluationas well as a Foreign Investment review and approval , the single biggest issue for Renegade is to receive back from this drill program some exceptional results so which ultimately ratchet up the SP sufficiently enough to raise enough capital to advance this project. And to continually do raises at 1.0 cents is definitely NOT the answer in my opinion because a.) it just further dilutes the Company's value , and b.) it won't raise all that much capital without this significant dilution of the company's value.
At this stage , I'm willing to bet the Company and its BOD see it this way as well , and if so I would definitely expect to see some ' Visual ' results from this Drill program along the way - otherwise , it's just purely wasted time if you're not progressively announcing any potential great findings . Because ,it then just becomes another ' vanilla ' drill program which due to the length of time shareholders have to wait for a result again , they just become discontented and sell it off again.
You have the clear fact being that the longer results normally take , the less likely they are even half decent type ' ethos ' which unfortunately at this end of the market creeps in.
(20min delay)