The Quarterly Activities Report issued today contains information that indicates MTR’s strategy of proving up resources and transferring increased asset value into shareholder returns is moving closer to fruition.
The report states:
1. MOD/MTR joint venture is receiving interest from third parties, including major mining organisations and investment funds.
2. Metal Tiger have recently received interest in their 30% position in the JV and the company continues the liaise with third parties.
We also have the General Meeting today passing both resolutions, moving the company closer to the position of being able to distribute assets too shareholders. The court order will follow.
The following events are IMHO reasons to believe the company is moving closer to fulfilling their strategy of returning value to shareholders:
- Weak pound, whilst it lasts, makes now a good opportunity for overseas investors or companies to make an offer for MTR’s investment in Botswana.
- JV have changed their strategy and are focusing prospecting the T3 dome. Is this to maximise the known potential of the area before a formal offer us tabled?
- Both MOD and MTR are receiving interest from major mining companies or investment companies. This is the first time we have been informed both companies are being pursued.
- Recent RNS stated:
1. Reinterpretation of magnetics data has resulted in drilling being refocused on the T3 dome. It must be significant when MOD have previously stated that other zones are potentially better than T3. I wonder what MOD have seen that has made them change their plan?
Or was this a subtle way of letting any potential buyer know that MOD/MTR intend to keep increasing their knowledge of the T3 area and the JORC information released to date is only part of the story?
2. Deep IP hole arisings had visible copper mineralisation and the assay results are now awaited.
MOD mentioning what they have indicates they expect the assay data to be significant. If they didn’t, why have they mentioned in an announcement to the market?
It is definitely a good way of letting any potential buyer know that the JORC information is only the tip of the resource.
MTR made an investment of $100k in Botswana. The returns look as if they will be substantial when you consider that T3, if this is the area of any offer, is less than 1% of the JV licence area.
T2 apparently is a more promising prospect.