Member Info for SocialistB

Part 1

Hi aprogerson

Having given some thought to your last two post, I am not sure I can be as optimistic as you about Rincon Resources.

Having said that though, I would not mind, if you’re right about a golden future.

There is no doubt that Gunsynd is on the very cusp of becoming something.

Or that in a year or two from now, investors would wish they had bought in at today’s share price.

But is it really Rincon that will be the company maker in the near future?

After a successful IPO, we will no longer hold the fantastic percentage of 28% in Rincon Resources,.
Our holding will likely have been reduced to 10-15%, maybe even lower.
And I have no clue as to how much damage, it will cause to our cash holding, trying to retain a meaningful percentage.

So will Investors really go crazy over Gunsynd after Rincon Resources’ IPO, if there is still a long way to the ground being mined?

Or even worse, they are planning on a Joint Venture (JV) with Newcrest.

I am not the biggest fan of Joint Ventures. Most of the ones I can think of, have been so unfavourable to the junior explorer’s in my view. (although in some cases the share price have benefitted)

Greatland Gold have done very well, but I cannot say the same for Antipa Minerals.

For me it is hard to see a junior loose 70-75% of an asset time and time again, to either Rio Tinto, Newmont, BHP, Newcrest etc. etc.

Unfortunately it seems to be the name of the game when doing JV’s.

If Newcrest are to take the same approach with Rincon Resources’ South Telfer prospect and the shareholders of Rincon Resources let them, then Gunsynd will end up with next to nothing.

South Telfer’s potential ownership in such are scenario could look like this:

Newcrest: 75%

Rincon Resources: 25%

Gunsynd would in this case end up, only owning 15% or less of Rincons Resources share of the pot.
i.e. next to nothing of the whole South Telfer and far from our original 28%.
Granted we got those 28% cheap, but we are likely to pay dearly to maintain a holding of 15%, after an IPO, and before the potential disastrous JV.

So with the above scenario in mind, I cannot be in favour of a JV with Newcrest.

We will be much better of if Rincon Resources decides to start mining it themselves.
The gold is near surface and they could start out with an open pit mine.

Okay, so I have been watching to many gold digging programs on the Discovery channel.
But it seems rather straight forward.

We do not need the same equipment as they have at Telfer to begin mining. What they have at Telfer today, is not what they started out with in the 1970’s.

Here follows two links to different providers of mining equipment.

https://www.911metallurgist.com/equipment/

https://www.aggreko.com/en-au/sectors-and-services/mining?msclkid=d8ad1d9866ff1d62543942e96c941beb&utm_source=bing&utm_medium=cpc&utm_campaign=AUS_ENG_Mining_BMM&utm_term=%2Bmining%20%2Bequipment&utm_content=Mining%20E

Good evening Spev.

From:

RNS Number : 6963X
Greatland Gold PLC
01 September 2020

https://polaris.brighterir.com/public/greatland_gold/news/rns_widget/story/rmozp8x

“The Company's new issued share capital comprises 3,793,940,416 ordinary shares.”

“The Company has the ability to issue a further 84,356,755 shares under its block listing facility”

If a sum raised from those shares are not enough to get us started, I would be okay with adding another 100-200 million shares and bring us up on 4 – 4.1 Billion shares in circulation.

That would not be a huge dilution for me.

Alternatively, we can go to the banks or issue gilts.

But we have quite a few tenements.

Some have gold close to surface.

Let the BOD decide which asset would generate us cash the quickest and cheapest.

Firetower for instance:
Best initial results include:
• 54.5m at 1.36g/t Au from surface (0m) (2019FTD001)
https://greatlandgold.com/firetower/

This is on Tasmania, so away from the heat of the Paterson region.
Just for the fun of it and because it is late and I can’t be bothered to research for the right equipment, take look at Alibaba.
https://www.alibaba.com/showroom/5-tons-small-scale-gold-processing-plant.html

There are bigger, better and more professional equipment out there, so don’t despair.

But we do not have to go for the state of the art machinery to begin with.

Lets just start to generate cash.

Then we can always improve from there on.

But I think the more likely scenario is, we will be selling an additional 5% of Havieron to Newcrest at fair market price.

That will solve all our problems.

My problem with a buyout is that we can not achieve the full value of our assets.

Having found some fantastic assets, and start mining them will give us full value for decades to come.

And I, for one, am tired of chasing the next fantastic company and burn my fingers because I got it wrong.

With gold I feel secure, there will always be a demand, there will always be a use for it.

For me, it just cannot get any safer.

And I will most likely receive a yearly dividend till the day I die.

All that is gone in a buyout.

Missing part from part 1

So if we have assets that can be mined for 30 years, and maybe even 100, if we take a slow approach, then you reach an astronomical sum.

Part 2

Problem is neither Newcrest nor any of the other big miners can afford to pay such a sum and nor should they, there has to be a healthy profit in it, for their business as well.

Which is why, I always land back at the same conclusion.

We have to become miners ourself, to truly realise the value of what Greatland Gold has discovered in the Paterson region.

And is it, that impossible, to become miners ourself?

No, others have done it before.

Do you need to have hundreds of millions to buy equipment for, before you get started?

No.

Newcrest has subcontractors to undertake a lot of the work at Telfer. These subcontractors provide all the trucks, diggers and so forth.

By the sound of it, Newcrest did not even have an in house engineer to develop Havieron, some members on this board pointed to an advertisement from Newcrest a few month’s ago.

So if Newcrest can hire an engineer to develop Havieron and subcontractors to do the manual work, then so can Greatland Gold.
But yes, we will have to hire significantly more people.

There really is no upside to being an explorer only.

Greatland Gold was founded in 2005 and listed on AIM in 2006.

Callum Baxter was one of the founding fathers.

August 14th 2006 Greatland Gold announces it has commenced exploration activities at the Firetower and Warrentinna projects.
This includes diamond drilling at Firetower.
https://polaris.brighterir.com/public/greatland_gold/news/rns/story/mx807er

They were still doing Diamond drilling in 2019 at Firetower.
https://greatlandgold.com/firetower/

So 14 years on, the prospect has not been turned into a mine, nor has it been sold.

Exploring is not so fun, nor is it easy. And it only cost money and is not generating any.

No, we are much better of becoming a miner and keep on exploring. No more JV’s then absolutely necessary.

BHP has been around since August 1885. That's 135 years.

We have all the assets to mirror that time line.

I would love, for my great great something in 2140 to still benefit from a wise investment decision I made some 122 years earlier.

In the end, we can only be taken over by a major, if we the shareholders decide to sell.

In the past, others on this board have said they would sell at 50p, 80p etc.

As it stands, I am hopeful that some of our other assets have the potential to mirror Havieron and we own them 100%

Until they have been drilled and proven to be dusters, I remain hopeful.

And that means, I would consider selling shares for less then £3 as selling them way to cheap.

And when our assets have been proven up, ie nor are they dusters or only 20.000 ounces per year mines, then the sky truly is the limit, and Greatland Gold will still be in existence 135 years from it’s inception.

And we have a change to be part of it, not from day one, but from the time it kicked off.

Nothing as beautiful as timing.

Bellers and Lenz, thanks for your reply.

And here follows the 2 part novel.

What would Newcrest think, with a competitor right next door?
Well not the usual line of fear and unrest.

A shop on the main street, that relays on footfall, will fear when a competitor opens up next door.
It could very well have a negative impact on their turnover. (except for those cases where it turns out to have the opposite effect)

Whether Greatland Gold, mines gold next door or a thousand miles away, it will not have a negative effect on Newcrest’s turnover. (unless we produce so much gold, it will effect the world price)

But they must be kicking themselves, they owned some of these assets in the past, even drilled them and found gold.

But gave them up.

I know, how I would be feeling. The same way, as I do, when I have sold a share too early and it takes off a few month’s later.

Kicking myself. Green, yellow and blue.

Luckily for Newcrest, they got 70% of Havieron for free.

The $65 million is money they would have had to spend on proving up the asset anyway, had they kept the tenement all these years.
They cannot defend going through 400 meters of cover, unless it is a viable business.

But it have been worth it, for Greatland Gold, to give away that huge percentage, look at where our share price is now.
I accept, it would not have happened, had we not got a major involved.
But I am truly sad, it ended up costing us such a huge percentage.

However, I hope it is very much, a one off. I would not like to see us, be taken advantage of, once again.

Our BOD has been very smart, the anomaly at Scallywag is much bigger then at Havieron and is only under 50-100 meters or so of cover.
https://greatlandgold.com/wp-content/uploads/2019/08/Fig1-Scal_MMI.jpg

If, we are so lucky that Scallywag are bigger MRE wise, then Havieron, then they gave 70% away of the right asset to propel us to stardom.

If we do not dare to dream big and grasp the possibilities that lies right in front of us, then we are doomed to fail.

And there would be nothing more pathetic then to fail from where we are right now.

We got all the right cards on our hands.

No debt.

Gold in the ground. (and possible in the ****loads of ounces)

Other minerals.

And not just one place, neither nor two, no we have it, in many many places.

Would Newcrest be smart to buy us out?

YES so absolutely.

Should we, the shareholders just hand over Greatland Gold for 1/100 of what we are worth?

NO, absolutely not.

What are we worth?

That is impossible to say, IT REALLY IS, IMPOSSIBLE TO SAY.

Even if we spent $400 million on proving up the other assets, we could not get an accurate picture.

I don’t think anyone expected Telfer to be operational for as long as it has been, back in the day when they decided to build the mine.

So if we have assets that can be mined for 30 years, and maybe even 100, if we take a slow approach, then you rea

Hi Dce2020

Thanks for starting a meaningful discussion.

Taking a very conservative stance and assuming that all the other assets, that we own in the Paterson region, only will yield a quarter of Havieron each and one of them.

I would like to see us as a fully fledged miner, as that, is were the true value lies.

I could also settle for a merger with Newcrest, if our assets proves to match up with what Newcrest already own.

What I so absolutely do not want to see, is Greatland Gold selling all the assets and continue as an explorer alone.

Greatland Gold started out in 2005 and for the next 15 years, it had a very boring existence, at least share price wise.

It had assets, pretty much from the get go, but managed to do nothing or at least very little with them.

With the funds we now have access to, we can truly evolve. A thing most exploration companies can only dream off.

This article gives food for thought, I cannot see that rise from our current share price, but there is still plenty of leg room ahead.
https://stockhead.com.au/resources/this-is-how-3m-market-cap-minnow-ramelius-became-an-850m-gold-miner/

5 years from now, if we are still a single standing company, have proved up some of our other assets, and the gold price has not collapsed, we will deal our shares in pounds and not pennies.

And we will have enough resources in the ground to keep us going for 100 years, enough to take even the youngest of us through retirement and leave something behind for relatives.

I assume as Mr. Ormerod had done his due diligence on the available data, Gunsynd decided to invest further sums into Oyster Oil and Gas, as in July 2017 they invested a further £250.000.
https://www.lse.co.uk/rns/GUN/further-investment-in-oyster-and-issue-of-equity-4unpcszatzrky6g.html

My take on the original plan was that Oyster Oil and Gas was to list on AIM, that did not happen unfortunately. And quite a challenging period followed.

At least £375.000 was invested in 2017, and from memory I seem to recall more has followed since, but uncertain about how much.

To me, it now seems like we are back on track.

I assume we have managed to maintain both of our licences in Madagascar and Djibouti, (after all it is challenging times and for these governments it might be better with the devil you know.)

Gunsynd will receive £240.000 for the Madagascar licence alone, of which we will then have to re-invest a significant part for at least 1 year in Sajawin (ENERGYCAPTURE PTY LIMITED)

Then there is the potential sale of the Djibouti assets. I assume we still have them, I do not recall we have been informed we have lost them.

But I do not hope, we will sell them outright, I would like to be involved in the discovery of a world class find. Both places.

Oil will still be in demand for centuries to come.

There is so much more to Gunsynd, then just mining.

Oil exploration, for example.

And news, could be, almost right around the corner.

No later then October the 30th, will we hear from the company formerly known as Sajawin (recently changed their name to ENERGYCAPTURE PTY LIMITED)
https://opencorporates.com/companies/au/628778861

I expect that the negotiations are still ongoing. They have not collapsed, otherwise we would have heard by now.

Sajawin have been looking at all the data for the better part of a year.

If they did not have faith in the assets or believed that an extension of Block 1101 held by Oyster Madagascar Limited was possible then they would have walked a long time ago.

From:

RNS Number : 0739V
Gunsynd PLC
29 November 2019
https://www.lse.co.uk/rns/GUN/update-on-oyster-oil-and-gas-872j1f5hsojkyne.html

b) In consideration of the sale of the shares in Oyster BVI to Sajawin, it will undertake to pay Gunsynd the sum of A$457,647 (approximately £240,000) of which 80% is to be paid within 5 working days of completion of the Transaction ("Completion") and 20% is to be paid within 60 days of Completion………...

Gunsynd has agreed to subscribe for A$200,000 of shares to be paid for from the consideration set out in b) above. Gunsynd has agreed not to sell these shares for a period of one year following the subscription………..

But this transaction is only related to the Madagascar asset.

On top of this, there is:
“The Production Sharing Contract for Blocks 1, 2, 3 & 4 in the Republic of Djibouti are not included in the Transaction and will be transferred to a party of Northbay and Gunsynd's choosing on or before Completion.” (still from above RNS)

Listen to the enthusiasm of Michael Wood, former president and chief executive, Oyster Oil, why these assets are so interesting.
https://www.proactiveinvestors.co.uk/companies/news/308479/oyster-boss-opens-up-about-world-class-potential-of-its-djibouti-and-madagascar-assets-8479.html

Gunsynd first invested £125.000 in Oyster Oil in January 2107.
https://www.lse.co.uk/rns/GUN/investment-in-oyster-oil-and-gas-jdfhqj3uf4imzr9.html

In March 2017 Mr. David Ormerod was appointed as a Non-Executive Director.

“David is an experienced oil and gas professional who has been involved in public companies at a management and board level for thirty years. He has experience with operations in Africa, Asia, US, South America and Australia where he has been involved in business development, initial drilling through to field development. He is a member of the AAPG, SEG and a fellow of the Royal Geological Society. He adds technical governance and strategy at a critical time in the development of the company. “
https://www.lse.co.uk/rns/GUN/appointment-of-director-4b3t1l9xhe2woi6.html

Good morning Scotty666.
I would so wish, holding land in the Paterson region was enough.
But I am afraid it is not.
If that was the case, then both Antipa and Artemis would be doing extremely well.
And they aren't.
I would so wish Rincon is going to issue a maximum of 100 Million shares and at, at least $3 per share.
That would give them some capital to work with.
But for that to happen, then Rincon has to prove beyond doubt that they got gold and copper assets worth billions.
And that process takes time.

When will the IPO be?

Good question, and impossible to answer directly.

My best offer would be: How much data would you want to see from Rincon Resources before you would pay 1 dollar a share in an IPO?

So far, Rincon Resources have spent the last 12 month’s preparing for field activities. And that is just at the South Telfer project.

Wed, 26th Aug 2020 07:00
RNS Number : 1334X
Gunsynd PLC
26 August 2020

“Rincon is aiming to commence a trial of Ultrafine soil sampling over selected targets in the next 6 to 8 weeks. In addition, a detailed structural mapping program will be conducted over the outcropping Hasties gold and copper mineralisation.”

But there are 2 more projects, namely: Laverton and the Kiwirrkurra project.

If I as an investor are to pay top dollar in an IPO, I would want to know as much as possible.

Take Newcrest and GGP. Newcrest signed up with GGP in March 2019 and have been drilling for a long time now.
Maybe not quite 1.5 years yet, but it is getting closer.

Admitted, that is to gain data for an MRE among other things, but it just goes to show that things takes time.

And Gunsynd’s track record proves that better than anything.

Oyster Oil should have listed on AIM years ago, that was at least the impression on this BB a long time ago.

Human Brands / Rogue Baron is also way behind schedule.

And then we have that little thing called Covid-19 and Rio’s recent behaviour, all of which can still have unforeseen consequences.

So with all that in mind, does anyone really expect a top dollar IPO if Rincon tries to list within the next 6 months.

I don’t

And they should aim for top dollar, because we know there is gold present, at least at South Telfer.

Nor does signing a deal with a major, make the share price fly automatically. Greatland Gold is a prime example on that. The had an agreement with Newcrest for the better part of 1 year before the share price jumped. And that seems, to have more to due with Covid-19, and the fiscal policies around the world, then anything else.

Still, with all of the above in mind. My best offer to break the dead water really is to invest in Greatland Gold.

If we had 1-2 million of those shares, I would be very surprised if we stayed below 1 pence for long. There is so much going for that share, especially right now at this very moment.

And when we have the higher share price, we can raise more money for less dilution.

Our assets will need all the money we can get. They are not cheap to develop.

Last week, was a very giving week, information wise.

No less then 3 RNS’ + 2 interview’s with Peter Ruse.

Having read through the “Quarterly investor update” from the 24th, and then the “Rincon Resources Pty Ltd - Operational and Corporate update” from the 26th, and later on the same day, the “Grant of Options” at a 14% premium.
I remain bullish on Gunsynd.
More so, then ever.

Gunsynd have a fantastic portfolio for the future.

There is no doubt in my mind that we will see a significant growth of our asset’s in the long term.

But delightful as that thought might be, what about here and now?

I must admit, that I would like to see some growth, in the share price, sooner rather then later.

And it was therefore nice to hear Mr. Ruse talking about the willingness to look more at listed companies and not just private held ones.

In my view, as long as they are undervalued and has a huge growth potential ahead of them, they are of interest, but please choose one that would add value immediately.

Why is immediate value so important you might ask?

Because October is right around the corner.

Sajawin Pty Ltd seems to be working in the background, they have recently changed their name to ENERGYCAPTURE PTY LIMITED.

https://opencorporates.com/companies/au/628778861

I am certain we will see a growth in our Oyster asset, if we just have patience enough. (years)

The world will still need oil for centuries to come.

But if we are to help support and retain our stake, maybe even grow our percentage in the new company: ENERGYCAPTURE PTY LIMITED in the future, we will most likely need to raise more cash.

And it would be nice if our share price, are higher when we do that, then it currently is.

Scotty666 has pointed out that the investment in Eagle Mountain Mining have risen with 130%, that is quite an achievement, well done to the BOD, for spotting this opportunity.

Unfortunately, the market does not seem to give a toss, about that fact, so far.

We need to be invested in something that that the market is keen on at the moment. Something were they feel they are getting a cheap exposure to that particular asset.

I am afraid that an IPO of Rincon Resources will not be the magic bullet (happy to be proven wrong)

And we now know, just having exposure to the Paterson region is not going to make the share price fly either.

Making a good deal with a major, is not an easy thing either. I have come to realise that the deal GGP made with Newcrerst ($65 million expenditure for a 70% stake in Havieron) is a rather good one, at least when you compare it, to what so many other junior explorers are offered, like $15 million for 70% in one instance.

Nor does signing a deal with a major, make the share price fly automatically. Greatland Gold is a prime example on that. The had an agreement with Newcrest for the better part of 1 year before the share price jumped. And that seems, to have more to due with Covi

3 RNS’ ranging from fine to great, and yet the share price do not budge.

My best explanation is that the market considers the investments either to risky or that they will first add value a distant future.

We need something that the market sees as adding value right here right now.

A company that has shown this ability over the last 6 month’s or so and still has so much going for it is Greatland Gold.

Investing a sizeable sum would help us at least twofold.

1. Share price would increase, just by having GGP in the portfolio.

2. As the GGP shares increase in value, they can either be kept just for that reason or sold for a healthy profit, that can be invested in our other investments to keep a significant stake.

3. Maybe, just maybe it could be strategical significant. It might open doors to a different deal, should the current plan for Rincon Resources not work out.

I am confident it would get us out of the current dead water.
Almost instantly

CAN THIS HAPPEN TO US IN A MATTER OF 2 YEARS AS WELL?

Ryan Reynolds-backed gin bought in $610m deal

https://www.bbc.co.uk/news/business-53810737

We got SHINJU Whiskey and COPA IMPERIAL Tequila in Rogue Baron.

SHINJU Whiskey seems to be hot among the youngsters.

COPA IMPERIAL Tequila should truly be a premium spirit.

Both products should be considered more premium then Gin in my view, as they actually take years to manufacture.
Gin on the other hand is a completely different kettle of fish.
That can be batch after batch after batch every month.

The future looks golden. (hint hint)

The question is just, which asset will be the first to win the race?

Bramps21

You have some very good points about London, Blackbeard, Blackhill South, Barbossa and Kraken.

It would take years and cost a fortune to prove them up to their full value, if that is even possible.

For that reason, I would favor either one of the 2 following routes.

1. Greatland Gold get revenue from from our 25% stake in Havieron and uses that to transform from a pure explorer to become a miner our self.

With the assets we got, we will not have to fear running dry of prospects for the next 100 years if they prove to be as good as Havieron.

This way the true value of our asset would remain in the company. For decades to come.

2. Follow in the footsteps of PUR (Pure Gold) to some degree. Prove beyond doubt that there is an enormous amount of gold present on the tenements.

If we can come up with a conservative guesstimate, that prove we are sitting on more resources then NCM, then we should try and go for a MERGER.

This way would be much faster and we would all get a good price here and now. And still retain a part of the asset.

The BOD of GGP have without a doubt made a good deal with NCM when you compare our situation to the likes of Antipa, Solgold and Artemis for that matter.

But that does not mean that we can not get a better deal next time around.

If it's true that all negotiations starts from a position of strength, then we are in a much better place with Scallywag then we were in with Havieron.

If NCM bases their business decisions on vanity, then I am sure they might not get out of bed for a "paltry" 30%.

But if they base their decisions on fundamentals, then they will, as long as the asset is big enough.

30% of multi many BILLIONS is most indeed worth getting out of bed for.

There is absolutely no reason for our BOD to aim for a deal based on the same terms for Scallywag as they had to accept for Havieron, and I doubt that they will.

Nice as NCM may be, they do through their weight around when negotiating, look at the deal Antipa got, far less favorable then what GGP got.

But I am sure our BOD also felt NCM's might during the negotiations about Havieron, otherwise they would not have handed over that huge percentage.

Regarding Scallywag, we will be in much stronger financial position, we will be able to prove up more of that resource with our own money and that places the shoe on the other foot.

And we should take advantage of that, and retain a much higher percentage this time around.

And for me, there is poetry to a reversed 70/30 split.

However I doubt it all matters.

All we have to do is prove up our assets, that they are highly likely to be worth multi many many Billions.

The day we can claim and prove without the shadow of doubt, that our assets are worth more then what Newcrest already owns, we can go for a merger.

At the AGM in 2019, Gervaise said that he doubted GGP would be a stand alone company in just a few years time.

So prove up our assets and aim for a merger with NCM, that's how I would like it to unfold long term.

Thanks for your reply Womo.

I agree, I do not think GGP could be in a much better place then we are in currently.

GH praises NCM as a partner, how they help our people on the ground by letting them use facilities at their camp.

To me that is worth a lot.

So I would like to see a good co-operation extended to Scallywag.

But on completely different terms.

GGP 70% and NCM 30% + what they earn on toll processing the ore from Scallywag.

It would make sense to use their facility at Telfer, as long as it is cheaper then building the infrastructure our self.

AIM is a concern for me too. And I think it is for many Institutional Investors as well.

The biggest advantage we currently have is that we are free of stamp duty, despite this I would like to move up to the main market.

Hopefully we will be told well in advance, should such a move take place, so we can decide if we want to top slice beforehand.

Hi thelearner.

It seems I need to clarify something.

When I said: " Given 70% of Havieron for free" it was a bit of a tongue in cheek.

70% is a lot to loose of such a fantastic asset as we expect / hope / believe Havieron will become.

Over the last 6 months or so, I have slowly come to realize what a a good deal our BOD managed to secure, when compared to another deal Newcrest made with Antipa.

However it still hurts to see such a high percentage gone.

But there is a grain of truth to the sentence about NCM getting it for free. NCM does not pay GGP a dime for their 70% of Havieron, all of the $65 million are being spent on proving the asset up at Havieron.
This is an expense NCM would have incured anyway, in every single possible thinking scenario had they still been the owners of the tenement.

I think it would have been extremely difficult for the BOD to raise the capital to prove up Havieron and all our other assets on decent terms.

SOLG should have some fantastic assets as well, but to me it seems like everything has gone wrong over there, with the way it has been financed and conducted by their BOD so far.

So having given 70% of one of our assets away, and by doing so, created a good working relationship with one of the best miners in the world, is very well done.

And a price well worth paying, if Scallywag turns out to be bigger then Havieron.

The electromagnetic maps looks promising. There is something down there at Scallywag, and it ain't dust.

So it got value.

Should I be wrong about that, and Havieron be the biggest find of all our tenements, well then it is, that it really annoys me again, that NCM got 70% of Havieron, but I acknowledge it was a gamble worth taking.

However I doubt that Havieron is the most valuable of our tenements.

We know Scallywag is bigger according to the survay's so far, hopefully that will also mean it is more valuable.

I, for one, certainly hope so.

Hi Bramps21

One of us have have misunderstood the JV big time (and I hope it is not me)

NCM does not own a percentage of Scallywag or any other of GGP's tenements.

The only tenements where they have a percentage is Havieron and here they can earn up to a 70% holding in 12 allotments by spending US$65 million within 6 years.

During those 6 years NCM have a right of first refusel to some of GGP's other asset's, like Scallywag for instance.

It's my understanding that GGP could in principle offer Scallywag to any interested party for multi many Billions. But within the first 6 years commencing in 2019, NCM have the right to say to GGP they want to match the offer from any other bidder.

They don't have to join a bidding war and thereby help increase the price. They don't have to offer a single $ more for the asset.

They just have to accept the terms GPP have reached with another bidder and they can legally walk away with it, but for a limited period only. (6 years, if I remenber correctly)

If GGP decides to mine Scallywag on their own (and I doubt that they will) then I do not think NCM have any right to acquire it. It is only if we consider a offer from 3rd party.

Hi RationalAssessor

I hope for option 1.

Newcrest got 70% of what is found on 12 allotments for free.

Yes they had to pay 65 million to prove it up, but that is an expense they would always have to spend to justify spending a fortune building a mine at Havieron.

They once owned the tenement but gave it up many years ago. There might be a bittersweet feeling of not getting 100% of the asset for that reason.

But they could also look at it differently and be very happy that they have managed to secure 70% for free, despite giving it up all those years ago.

And why not settle with 70%. Why is this idea floating around that they must ABSOLUTELY have 100%.

Sure 100% will give NCM the full revenue, but it will also increase their expense enormously.

When NCM has paid a fair price for 5% and brought their ownership up to 75% as you suggested, that will hopefully be because they have a self interest in GGP doing well. (and no interest in seeing someone else buying it)

We need to be able to fund our share of the expense for the mine and we also need cash to prove up all our other assets.

A thing NCM are likely to benefit from big time, if the 2 BOD's have a great relationship.

In my view selling our 25% share in Havieron is downright stupid. We cannot get a precise result on the amount of OZ in the ground.

We will never get the maximum value out of the asset by doing so. NCM's extra profit on the 25% is our loss.

When they started mining Telfer back in the 1970's, they did not imagine they would still be going (strong) today. If there was anybody selling a percentage in the mine back then, then they have been grossly under payed.

And we should not put our self in such a situation.

We can always sell our 25% halfway through the mine's life expectancy (or better yet, even later)