REX DIAMOND MINING TSE:RXD Message Board

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Gold/Mining/Energy : REX DIAMOND MINING TSE:RXD

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To: George J. Tromp who wrote (2461)	8/9/2000 8:01:01 AM
From: Bob Fairchild	Read Replies (1) of 2522

Hi George. This deal looks a hell of a lot better than the one that Ashton got from Diamet for their Mauritania property. On a comparative basis Rex would end up with $20-$25 million invested from DeBeers for a 10,000 sq. km. block vs. $10 million Ashton would receive for 209,000 sq. km. of exploration from Diamet. Taking into account that Rex's deal was for 60% and Ashton's was for 49 % we end up with the fact that DeBeers is willing to pay: 2.5 x 21 x 49/60 = 43 times what Diamet is going to pay per square kilometre. This is quite a significant premium and would indicate to me not only the deal making ability of Mr. Muller but that DeBeers has more than inkling of the potenetial of Rex's claims. The ability to use DeBeers to finance Rex's share of expense will insure that they get the best of both world's for the next step. I seem to remember that some misinformed individual was a few months ago spouting about Ashton having the best land position in Mauritania but this would certainly indicate otherwise. I was buying yesterday at $4.25 as I don't expect this drifting down in share price will last very long. Bob

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