Two ways of playing it.. Option 1: Pay $1.5m and get 100%...

Two ways of playing it..

Option 1: Pay $1.5m and get 100% (presume no royalty - hopefully) which may accelerate timeframe for next capital raise... or

Option 2: Peter Cook is one of the smarter operators in the industry, and combined with RW's high level of technical proficiency, there is a partner who can either be diluted down with capital calls or assist funding this into production...

Option 1 would mean RW is very very positive on the pending Resource statement and willing to roll the dice that it will come up trumps and he'll be able to do a good capital raise before the end of the year to take it to project funding.

Option 2 also shows confidence, and brings an assertive, gold producer into the picture which means possible corporate activity down the track, they may fund the project into production (reverse dilution) and/or help with toll treating (jeez, if they don't have to pay for a plant, the economics are radically different on an ore body of this size..).

Either way, its a great vote of confidence in the SLR assets (which includes MGV) - Peter has a knack for picking things up at the right time (old Avoca/Alacer assets anyone - I heard he got fully paid back within 18 months on that acquisition)... and it will bring some much needed attention to MGV in the market as those market announcements are a little more widely distributed than MGVs.