Ann: Placement, page-20

GT55.

" That’s how farm ins work when you don’t have the money to drill your self, a lot of potential upside is given away. "

Yes, a lot of upside may be given away but also the downside risk is given away. I would suggest that in the very risky search for mineral riches that the downside risk is substantial.

"drill to discover (the $9 mill to be spent over 4 years) the asset if it’s there"

Exactly!!! If it is there then do you really think that S32 will not get stuck into drilling it out?

They and Inca are chasing a "TIER" 1 site. They are like rocking horse pooh and for them to buy one in the market they would be looking at billions of dollars. It will still cost them a substantial amount ( hundreds of millions I reckon) but this way, by the time they get to mining stage, it will have been cheaper than buying one in the market, except if they find nothing as then they will still need to buy one.
From Inca's point of view it will cost us little more than what we have spent to find out if it's a goer or a fizzer. Good deal I reckon.

And remember we have lots more to go on with in the meanwhile.

You sound like an S32 shareholder who thinks you are going to get all this for $9 million dollars. Let me tell you you won't get it for anywhere near that price.

Read Inca's announcements properly.


Lockitt