Gladiator resources (GLA.ax)I'm surprised this hasn't been mentioned.
OMI have a joint venture agreement with a company called Gladiator resources, listed on the ASX.
Interestingly, Gladiator resources are capped at around A$30m. They hope to earn their initial 20% interest in the ICB (excluding gold, silver & diamonds) this calendar year. Here are the terms of the agreement.
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The Agreement with OMI provides for Gladiator to earn a 20% interest in the ICB project by expending USD $1,000,000 on work programs. Gladiator may, at its discretion, earn a further 31% by expending a further USD $4,000,000 taking its interest to 51%. Gladiator may elect to earn a further 29% taking its interest to 80% by producing a bankable feasibility study on or before 31 December 2015.
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The general point here is that the value of this JV to OMI should not be overlooked. It is of significant worth. Add in cash ($10m+ by now?), profitable production at San Gregorio, encouraging results to the east of the ICB, Arenal deeps to come online, Pantanillo exploration (1million+ ounces there already), Anillo potential etc, and OMI looks very, very cheap indeed at the current price.
The project director was happy to pay $1.30 for a tranche of shares. Over time, I hope sure this will look like a very savvy investment.
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The most recent Gladiator annual report is well worth a read, great potential:
https://www.gladiatorresources.com.au/wp-content/uploads/2010/10/30-09-10-annual-report.pdf
Current Activities
The
Company has employed three Uruguayan and two Brazilian geologists to operate and manage field activities
including site preparation, resource drilling and geological mapping. Drilling utilising up to three rigs commenced in
August 2010 and will continue for three or four months with metallurgical testwork occurring in parallel. Infill
drilling to define resources and to provide additional material for further metallurgical testwork is scheduled for the
first half of 2011. The Company anticipates commencing base line
environmental studies during the 2010 calendar
year.
The Company has also commenced a pre-feasibility
study on an initial starter project. The main elements of the
project will consist of:
? Resource estimate and further metallurgical test work;
? A mine site where the iron ore will be mined and processed to an iron concentrate;
? A pig iron plant where the concentrate will be sintered and then converted into pig iron;
? Several charcoal production modules, which may be located at the pig iron plant or next to plantations; and
? Development and augmentation of relevant infrastructure to
support the project operations.
Conceptual studies to date have identified a relatively modest capital cost and comparably moderate operating costs.
The studies also confirmed the robustness of the project. However, Gladiator will continue to explore opportunities to
further enhance project parameters as the economics of the project are confirmed during the pre-feasibility study
period.