MEP, OZL & FMR

(I have double-posted this comment to the OZL thread as well)

Recently I was circling OZL to pick up another parcel in the low 8s.

On 28 August, Minotaur announced very useful grades in recent drilling at Eloise, with several >2.5% Cu of reasonable width and not scarily deep.

I was going to jump onto the HC OZL thread and observe that this was 3km from FMR Resources’ Eloise copper mine and concentrator.

If MEP located a single mineable lode it could be toll refined by FMR or sold to them or similar.

If MEP finds something a bit bigger, the FMR concentrator could be easily expanded with extra circuits.

If a decent orebody is found, OZL would be pleased to make FMR an offer they couldn’t refuse.

Any of these options would be of immense value to MEP holders with market cap of just $11m.

On 4 September OZL announced it was extending and enlarging the MEP-OZL JV - a week after MEP announced these assay results. Now I know they are only spending an extra $2m, which is small change for OZL, but that was a quick response. OZL are notoriously cautious/prudent/ conservative operators. Maybe a board meeting coincided to allow this decision, or the board has delegated this level of approval to management. As well, the OZL exploration team would have endorsed the spend. At the very least, OZL were showing indecent haste.

Then I looked at the MEP share price, trading at historic lows on expectations of an imminent capital raise. It also has good opportunities elsewhere and a horse-trader CEO.

I liked these odds. So instead I bought a parcel of MEP at 4.3c with my OZL money.

My holding is tiny; my spirit is willing.

Now on board, I can say GLTAH!

Ash