RE: RRR Wed, 14.2.24 RNS: PRE-IPO/IPORED ROCK AUSTRALASIA [50.1% JV]15 Feb 2024 12:41
Sorry Kimi if the following upsets you but you don't understand what you are talking about.
Mako has an MRE for 860k oz on its own acreage. If it is currently exploring its own acreage to add ounces. It is also part way through a DD process with a company called CAREM/Goldridge for acreage to the north of the licence in question.
Why?Mako wants to get to tier one status, which it says is 2m oz of gold which makes it then saleable to a larger company. The management team have previously done this with Orbis.
The Mako ceo reckons that the read across for MRE ounces is $30/$40 an ounce.
Why are we bothered? Lacgold has acreage which partly bisects the two licences mentioned above and partly abuts to the east. The Napie Shear Zone continues into our acreage.
And? Well if Mako wants to get to the 2m oz plus and then sell out, it would be easier for them if they had our acreage. It looks like we have the east of a fair chunk of the Napie Shear Zone. One of their senior bods was in Abidjan this week. Typically they go to Cote d'Ivoire for several weeks at a time. Might be time for a chat?
What about lifestyle, share price etc and all other mindless drivel? We couldn't care less; what we are interested in is, do they want a JV, what are the terms, will they perform the work programme and can they get an exit?
What might the JV terms be; typically what you would be looking for is something like $200k/$400k upfront, plus a $1mil work programme over 2/3 years. If you look at the Goldridge proposed terms that will give you a steer.
Is this the greatest thing since sliced bread? No it is just business in respect of another deal. RRR said it will seek to monetise its assets. Whether or when the DRC money comes in, RRR needs to rationalise its portfolio. It needs to start IPOing assets, JVing them or just selling them. RRR has said this but it takes a while.
Cote d'Ivoire: we appear to have good acreage. We have at least one company sampling on one of our licences, not the Mako adjacent one, at their own cost and RRR will be copied in on the results. If you listen to the recent Kobo Resources Twitter Spaces broadcast you will be better informed on the environment for gold exploration and deals in Cote d'Ivoire.
RRR's mc is about £3mil, if it can do a deal with Mako that values that licence at $1mil for 50% then that is material to RRR. Same with the other licence with either Koulou or Kobo. To get those licences cost a few thousand.
https://x.com/thomasg_grizzle/status/1757407640924139767?s=20
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