Since, Lewis Tay won the election against our three favoured board members. I wasn't a big fan of the Lewis Tay & friends co.
But today's announcement to farm-out our base metals exploration tenements to China Coal Geology Engineering Corp. is good news. I believe we lack the resources to pursue a consistent exploration work on our base metals tenements as we are solely focused on our iron ore assets.
CCGEC is a well funded and experienced mining company, they focus and funding on exploration for base metals, if successful, will see upward exposure for our 40% holding in the new entity. Also those funds will assist with our development of the iron ore project.
In addition, we could become an attractive takeover target by either AGO, WNI, or BCI.
BCI's failed merger with Regent Pacific would mean BCI would need more future growth from its sole limited life Nullagine project. An expansionist plan for BCI should be on the cards. Unless they eye on West Pilbara, then DMA would be a good target.
WNI's dual takeover of BRM and FRS, if successful would mean, there aren't much targets left in East Pilbara only being dominated by: RIO, BHP, FMG, BCI/FMG JV, AGO, WNI, Hanlong controlled small iron ore operations of MOL. AND of course DMA.
I wouldn't be surprised if DMA is target by AGO, BCI, and WNI.
DMA Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
