From egoli: ******** Royal Resources Limited (ROY) said it has entered an agreement to acquire 100% of private company Mintech Resources Pty Ltd for $4.95 million. Royal said Mintech is the holder of the iron-rich Razorback Ridge Project, in east-central South Australia. The company said the acquisition of the shares in Mintech is conditional on Royal completing further fund raising activities. Royal said it has also entered into an agreement with Goldus Pty Ltd for the right to access to acquire iron ore exploration licences EL3927 and EL3997. The company said an annual option fee of $50,000 is payable with a right to exercise the option to acquire both licences for a payment of $10 million. The option is for a ten year period and Royal said it also retains the right of first right of refusal on any other minerals found on these two tenements. *********
Considering the timespan involved in these new ventures, it looks very much like "jobs for the boys". Razorback is a ridiculous 10 years away from any "possible" production, and the Goldus venture sounds like a bit of Goldust to me as well. Going by GBG's efforts, in 10 years time then, Razorback will consume about $3 Billion dollars to get anywhere near 10mtpa of concentrate. Still, GBG managed it from a tiny gold spec to very close to being a producer.
A capital raising anytime soon will decimate the shareprice though and the only glimmer of hope is still the Warriedar JV with GBG who have also dragged their heels in comparison to what they promised shareholders over the years. So imagine what ROY will do.
If board and management stay the same then their habits will also remain the same. A buyout from GBG is the only good news that I would look forward to in the medium term.
MFE Price at posting:
7.3¢ Sentiment: None Disclosure: Held
