Ann: AngloGold Decision on Rover 1 Clawback Due 2, page-9

re: Ann: AngloGold Decision on Rover 1 Clawba... chrisviny

gotta love your enthusiam but i think you've got gold fever! i listened to the brr presentation again. it seems the $150M that andy beckwith refers to was if wgr carried out a lot of extra drilling (far beyond what they will do before october 20 deadline) required to carry out the feasability study themselves and if they also built the decline (which he reckons would cost $15M on its own). so it seems (to me at least) that $50M (i.e. 3 x $17M) is the estimated total that anglo would have to fork out if they exercise clawback for rover 1 around 20 oct.

if anglo do exercise the clawback then wgr get free carried while anglo cover the cost of drilling to a resource of at least 2M oz and carry out the feasability study. wgr would retain 25% JV post the feasability study but this would still be agreat result for wgr. the downside is that anglo may take years to reach this point before proceeding to mine. on the upside, wgr would have a $50M war chest to accelerate the search for new deposits in their higly prospective tenements ...