Looking at the deal more closely, the first question is has the Mt Leyshon holding been "sold" completely or do LRL still own the ball mill scats ?
I find it strange that Newmont are paying $220,000 for expenses incurred by LRL during 2015 and then in the period 2016-2025 LRL will have to pay Newmont $2,790,000. The last qty figures showed a cash balance of $380,000 !
There is still the outstanding loan of $600,000 of course but don't hold your breath. PA isn't
There is also the question of finding $3 million for a re listing on ASX.
I don't know prices for extracting gold from scats but LRL state that there are between 100-170,000 ozs of gold within them.
That's between $127 million and $216 million worth.
Somebody may be getting the deal of a lifetime, particularly given the current trajectory of gold.
It's not thee and me
LRL Price at posting:
1.2¢ Sentiment: Hold Disclosure: Held
