Ann: RRL: Market Update - Discussions With Capricorn Metals Ltd, page-49

Hi @minoil

Nothing stopping them taking this course of action. I was actually quite surprised to see the proposed 90% minimum acceptance condition. Having that level of certainty hanging over a TO is unrealistic in my opinion and in my experience that’s quite an unusual condition.

Normally once you get the support of all major shareholders who hold potential blocking stakes of over 10% you find that the smaller shareholders quickly capitulate once the offer goes unconditional at whatever level it is pitched at and even if they don’t manage to mop up the remaining shareholders to go to compulsory acquistion they can normally entice the few recalcitrants to sell with an improved new offer down the line somewhere.

If the company gets busy with its remaining funds to increase the reserve/resource one more time, the project might start looking good for other players as well. RSG have been mining 0.7g/t ore at Ravenswood in QLD successfully, so grade is not an issue here IMO. The deposit is also a winner IMO because of the low strip ratio and excellent continuity of the mineralisation plus its simple geometry. A reserve of over 1Mozs and a resource of over 2Mozs in a safe jurisdiction like Australia ain’t going to hang around long IMO, particularly if the government changes send the Australian dollar down with it.Esh