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3.57%

2.9¢ azumah resources limited

Ann: Acquires 69,000 oz High Grade Julie West Project-AZM.AX, page-4

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fbx258

4,287 Posts.

171

27/04/16

15:11

Post #: 17610560
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Originally posted by loki01 ↑

fbx

It is not as cheap as it sounds. I believe there is a 4% royalty to be paid on production so CDT will get a lot more for it than the $500k cash it sold it for in 2015 - see

http://www.aspectfinancial.com.au/d...Jyb3JwYWdlcy9wZGZkZWxheWVkLmpzcA==&popup=true

This tenement used to be CDT's flagship asset about which they claimed they would monetise to fund exploration (I owned both CDT and AZM 4-5 years ago).

The sale price to AZM implies Bunda is making a loss on the sale unless the 7m AZM shares it is getting more than doubles in price.

It is a good deal for AZM (except for the royalty payment). Perhaps it will help get AZM's project over the line for funding, but I have no idea if that is going to be the case. They probably need a higher gold price and then they will have a smallish plant to generate revenue for further exploration of their tenements and perhaps takeover CDT (which they already part own - long story there).

loki

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Loki you are bad luck ! i nearly got my order filled and now its spiked to 048c....

I don't see it a biggie 4% royalty and with GP behind AZM, i am expecting a great remodeling plan.

Well worth a punt, maybe tomorrow it drops and i can get my fill...

Last edited by fbx258: 27/04/16

AZM Price at posting: 4.8¢ Sentiment: Buy Disclosure: Not Held
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