GXY 0.00% $5.28 galaxy resources limited

I think that an item of significant interest to GXY is the COW...

  1. 777 Posts.
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    I think that an item of significant interest to GXY is the COW tenements surrounding (quite literally) the Bald Hill mine.
    Largely undrilled, Cowan is considering a $4-6mil IPO in 2H19 to fund and commence a drilling program. This would be a snip for GXY to simply offer, say, $10-15mil and TO.
    Now, there are certainly hurdles (A40 is the major shareholder in COW, they share board members, COW was spun out of TAW, and the tenements are extremely proximal to their operation) so a TO would have to be VERY friendly to be successful, but I don't see A40 are currently in a position to prioritise development of these tenements.
    Further, this would potentially allow GXY to significantly increase it's Australian operations in a rather neat manner - any future TO of A40 itself would be at a considerable premium (I don't see the A40 SP going much lower than 16c), given the product they are already producing. Rather, by targeting unlisted Cowan, there is only a drop in the bucket for GXY to spend in order to take an asset that has been languishing in A40's portfolio for years.
 
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Currently unlisted public company.

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