I have been advocating the disposal of the Doolgunna tenement to SFR for a long time, but at a fair price. For how many years have I been doing that? 2, 3?
It sits right in the middle of the very prospective tenements held by both SFR and SFR/TLM jv. It has the DeGrussa/Conductors deposit just to the north west. It has the Monty deposit just to the north east. It possibly has, within its bounds, a generally north to south (and vice versa) fault that has fed the vms deposits at DeGrussa and Red Bore and imo could have fed similar mineralisation at Cuba and Ross's Reef and in between.
AUR spent a bomb getting ownership of it from Ascidian Prospecting p/l (David Jones, geo) and issuing a plethora of shares to AP as well, which were subsequently sold. Acquiring full ownership was a very expensive exercise for RNI/AUR.
AUR, having acquired full ownership, was under no pressure at all to sell it or, heaven forbid, to farm it out. However, it was best held by SFR, and for a number of good reasons. I am sure that SFR has coveted it for quite some time, so tease out the best dea from it. Selling it 100% should be worth millions I kept on thinking. Brinkmanship was called for the AUR Board so as to get a decent result. As I said, there was no pressure to dispose of it or farm-out/jv, so play the waiting game.
But what did this Board do? It farmed it out at a pittance. It also potentially entangled AUR in a complex exploration and mining web, one that probably would involve TLM too via its jv with SFR. Add FEL to the mix as regards Morcks Well and the complexities expand.
It's ineptitude on a grand scale!!
AUR Price at posting:
5.3¢ Sentiment: None Disclosure: Held
