Merrex Signs LOI to Divest Non-Core Assets and SirBINGO!!!
This is what we have been waiting for. The resulting Merrex will be a pure play-just the Mali assets and nothing else.
This type of arrangement is typical of what happens before, or sometimes concurrently with, a takeover. The acquiring company does not want to pay extra for extraneous assets that it has no interest in so it presses the target to get rid of them. Obviously we have no way of knowing at whose initiative this happened in this case but its encouraging none the less.
Results should be coming from MXI soon and now we are nothing but a highly prospective gold play in a stable country. No penny ante distractions.
And our largest shareholder/partner already has extensive operations in the region-the hottest region for gold exploratoin on the planet right now. Moreover we are still in the drivers seat as operator and full 50% partner. If someone else likes this project-and they should-they can snatch control of it by taking out MXI.
Meantime we can, as shareholders, get a lift from the new company and their activities. With base metals starting to move the Jublilee project could prove to be a real surprise.
Just as an aside I saw stats the other day that since the beginning of the current bull run in Gold started around 2002 global mine production has fallen about 4%. This is startling. Commodity markets tend to be self correcting precisely because high prices bring new supply on stream-just as low prices take supply off line. This process causes, over time, prices to revert to the average. Higher prices have not been able to coax more production-this bodes well for the future price of gold. And it bodes especially well for the future of small companies with advanced gold projects. I realize that this little company has a long history of trying the patience of investors but I do believe that we are finally on our way. And I also believe that it will prove to be worth the wait.