Metanor Resources MEAOD

RE: SOME WORRIES ON MTO's BOARD?

[JRaffles]

What your strategic planning would be within this context? Develop slowly or sell a part of MTO to get an expanding compagny in a Bullish sector???Think about it....

My view, expressed before last September's Barry 43-101, was that MTO should sell one of their projects and make the other run to produce profits.  However, since then:-

1. The introduction of Sandstorm into Bachelor Lake, probably makes it an unattractive buy for a major.  This would probably be more of a concern to a company such as Agnico, who spent millions drilling to about 3,000 feet in their nearby Goldex mine.  With Sandstorm on board, they would have a free ride for the huge capex needed to go deep at Bachelor, by the operator.  Incidently, it would be interesting to know what Sandstorm would do when the known Bachelor reserves were extracted and that it was uneconomic for Bachelor's operator (NTO or another) to incur capex only to earn 80% of ore.  Would Sandstorm reduce to say 10% on the basis that something is better than nothing?

2. The grade at Barry is probably too low for it to be economic for NTO, unless huge capex was expended and all Barry camp miners pooled their resources. 

In conclusion, the directors have created a situation whereby it is difficult for MTO to realise either of their projects independantly, although it the expanded Barry complex could attract big money buyers, if it included Eagle Resources and Bonterra at least.  It is possible that, within a year, taking MTO, Eagle & Bonterra into account, the total 43-101 Barry resources of these companies could approach 3m ounces.  Therefore, I expect that MTO's board will proceed slowly [due to lack of resources resulting from low SP following directors actions], unless or until an external purchaser seeks to offer a favourable price for all the Barry operators.