Corporate Activity......, page-3

I think NST's move to buy WGX's SKO mill & tenure for A$80 million ($60 million in NST shares + $20 million cash) speaks volumes about NST's immediate plans.
IMO, this makes me even more bullish that a transaction for EAR will likley happen sometime this year.

- If NST were to T/O EAR, a similar deal would be done where mostly NST shares (script) would be offered (even though NST is pretty cash abundant at the moment).
- NST making new all time high today of $6.685, so any script offer for EAR would be optimum and less dilutive at the moment.
- NST's move for WGX's SKO operations signals it is very focused on expanding its W.A. asset base and wants step-growth now. It doesn't want growth plans for 5 yrs time, it wants it asap. EAR's BW mill also offers more step-growth (with a cheap refurb and short turn around).
- NST not concerned about having mulitiple mills near each other. SKO purchase today is 50km from its Kundana mill. NST's tenements south of Jundee are about 75km away from EAR's Bronzewing Mill. Looks clear that NST want greater flexibility to mine at multiple sites and send ore between mills to get lowest opex possible (economics of scale).