I think its very clear, based on the commercial terms, that we...

I think its very clear, based on the commercial terms, that we as holders can expect a very aggressive approach from Musgrave. They have landed a large project for a tiny capped explorer, but they do have some key cornerstone shareholders and expertise on the registry. With this aggressive drilling campaign they will need to raise money in the next 12 months, which shouldn't be an issue going by top 4 alone, and with only 125m shares on issue, tightly held with bugger all options, there is scope for dilution along the way. Riskier with potentially very high reward gold exploratory play, with development ambitions, in deep gold bearing territory.


The key commercial terms for the Farm-In and Joint Venture Agreement are outlined below:

 Commencement occurs on the satisfaction of the Conditions Precedent
 $75,000 payable in ordinary shares in Musgrave Minerals Limited on Commencement
 $900,000 minimum commitment on exploration expenditure on the Project within 12 months of Commencement.
 Musgrave to earn an initial 60% interest with a further spend of $1,800,000 within a further 2 years.
 Upon completion of one of the Project Milestones referred to below, Musgrave will, at its election, either pay Silver Lake $250,000 cash or, subject to obtaining shareholder approval, issue to Silver Lake that number of fully paid ordinary Musgrave shares with a total issue value of $250,000:
 Delineation of an additional JORC (2012) compliant inferred mineral resource of 400,000 ounces gold; or
 An additional JORC (2012) compliant inferred mineral resource of 80,000 tonnes copper.
 Musgrave may elect to increase its equity in the Project to 80% by spending a further $1.8M within a further 2 years.
 If a party dilutes below 10%, its joint venture interest will convert to a 1.5% net smelter royalty.  Upon a Decision to Mine Musgrave will, at its election, either pay Silver Lake $250,000 cash or, subject to obtaining shareholder approval, issue to Silver Lake that number of fully paid ordinary Musgrave shares with a total issue value of $250,000.
 Musgrave Minerals will manage the project.