GBG needs more hematite and the most readily obtainable to them is probably the deposits in the Warriedar JV tenements.
I still think GBG will be interested in buying out ROY's 40% and that may well be why ROY already seems to have switched their attention to Uranium?
Should a sale not be forthcoming, then from GBG's perspective, development within the next 2 years is likely - only trouble is will ROY have funds to go that distance and will ROY be able to fund their 40% of an IO development on their own? Will they be able to retain the 40% or will that be reduced to help pay for development.
It seems (to me at least),to point towards a sale to GBG and the drilling will continue until they can determine the size of the deposit more accurately. ROY has to pay their way for the drilling so at some stage ROY will need funding to continue or be forced to surrender more of the JV to GBG.
Either way, it will be a better outcome for ROY than simply sitting on an idle asset.
MFE Price at posting:
6.5¢ Sentiment: Buy Disclosure: Held
