MPJ has currently 1.348 billion MPJO Options on issue. According to recent Ann confirming 1:10 Consoldation to be ratified at upcoming EGM @ 12/4, there will be 245 million MPJ shares & 140 MPJO Options on issue post-Consolidation. A very good move IMO if action hots up in near future - e.g. making a Lithium strike at Pilgangoora. Better to have a manageable & reasonable register and not billions of shares & options out there - and more acceptable to Institutions, which Management are mindful of in becoming re-rated. So, there will be 140 million MPJO Options on issue post-Consolidation, with an Exercise Price @ 10 cents (cf 1 cent as now) & Expiry @ 30/6/16 (as now - unless extended, which is unusual but possible if ratified at a meeting). I originally invested in MPJ, going back ~18 months ago, for the prospect of a 'Kambalda'-style multiple-deposit Nickel strike(s) at Roe Hills. I think this is very possible & likely in the future - and could be huge, like Kambalda, with multiple Nickel discoveries in lava channels of their 'Cabbage Leaf' geological model, over a massive 40 km strike. However, Management have, very wisely IMO, completely re-focused their exploration in light of the Commodity rout of the past year or so, seeing the Nickel price plunge - to ~$8,000/t - along with all conventional commodities. MPJ have re-focused their exploration on commodities that are surging - in particular Lithium (surging spectacularly) & Gold (rising steadily against the trend of the rout). To also acquire Tyranna's tenements in Pilgangoora adjacent to the skyrocketing Lithium-discoverers PLS & AJM, may turn out to be a stroke of genius - if they find Lithium. I think this is highly likely due to the Pegmatites that are known to be there plus the historical evidence of Lithium found there in the 1960's by Electolytic Zinc (?), as splendidly researched by Poet Plus, when it was not a commodity in demand - as opposed to now when Lithium is THE hottest commodity. I think Management know Lithium is on MPJ tenements, and they just have to determine the extent of it and prove-up a JORC resource - like PLS & AJM have done (witness multi-bag s/p rises recently).
Hence, Management have a big incentive - $14M reasons - to get MPJ re-rated significantly (which a Lithium strike would certainly do) BEFORE 30/6/16, so that 140 million MPJO Options are exercised by that date, and do not expire worthless. MPJO Exercise is the best outcome for MPJ & MPJO-holders, of which I am one. I think Management are very aware of this, which would obviate the need for Capital Raises for the foreseeable future.
Also, I think the exploration priorities of MPJ are:
Lithium ------------- short-term
Gold ------------ short-term & medium-term
Nickel ---------- medium-term & long-term.
Nickel at Roe Hills will come into play at the appropriate time, and it would be strategic to do the groundwork while Nickel prices are depressed. I'm still confident that MPJ will discover another multi-deposit 'Kambalda'-like & huge Nickel strike at Roe Hills. If MPJ proves up Lithium at Pilgangoora and the s/p re-rates significantly - which it would - I will be exercising my MPJO Options for Lithium now and Nickel down the track, with any Gold resource as 'cream on the cake'. Go MPJ!!
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