Mabilo

I think the market could be in for a surprise

Most people who bought this in the last 12 months wouldn’t know about Mabilo, the deposit in the Phillipines RTG owns 64% of

They are in arbitration with their JV partner Galeo. Under the terms, the aggrieved party may acquire the offending parties share for negligible consideration. The arbitration has already been paid for and should bring a result in March/April

RTG did everything by the book, the JV partner played silly games. I believe he only did this while Gina Lopez was head of the DENR, as mining was effectively banned. If he could seek to drain RTG’s resources, he may have been able to leverage them to sell their share cheaply. This only works while mining is banned and the asset is stranded

Lopez got the boot from the DENR, and Cimatu, her replacement is in favor of responsible mining. The government has already said the ban on open pit mining will be lifted as its unconstitutional. The president Duterte is dragging his feet on implementing the ban ... for now. Pressure is mounting big time from the MICC, as they face some $24Bn+ in potential lawsuits. The word is several mining companies are quietly confident the ban will lifted before the end of the year, if not earlier January

If/when this occurs, the value of Mabilo goes up 10 fold. This is 1-2Mozs at 5-6g/t aueq, open in all directions and has porphyry potential. DSO capex estimated at just $17M ... an absolute cash cow. This was on the cusp of receiving full mining license prior to Lopez’s appointment.

In the even the ban is lifted and Mabilo granted an MPSA, I believe both partners will want out of arbitration. RTG is commercial, even if they could string it out and acquire the partners share for nil, I believe they would settle and have him commence drilling and overburden removal as he previously agreed under MOA. He is a very experienced operator, just trying to be opportunistic IMO.

The supergene on this is crazy. I can only imagine what porphyry drilling might uncover. Hartley’s previously valued Mabilo in production at $2.41



Should:-

- the ban be lifted on open pit mining
- Mabilo receive an MPSA
- RTG settle with Galeo to abide by previous MOA terms,

Then what is that worth ?

The company would then own 64% of Mabilo, have a mining license, could be producing within 6 months for <$20M capex, and drilling for porphyry to see if the 2 ore bodies connect

Here is the big hints:-




Side by side, I would say this project has even more potential than Panguna.

RTG already own 64%, it is DSO, the capex for stage 1 is just $17M, and has the potential to double or triple the resource with a porphyry find. This would have cashflow within 3-6 months and be a walk in the park for management

Keep watch for DENR news ...