MOD Resources (MOD) recently received an unsolicited, non-binding indicative offer from Sandfire Resources (SFR, BUY, $7.80/sh TP) of ~$0.38/sh. While this is yet to materialise in a formal offer, we believe the Company is in-play and one of the few acquirable quality copper development plays globally. Despite this corporate interest, the Company is maintaining its course on the Botswana Copper Project and is due to release a Bankable Feasibility Study (BFS) on its 100% owned T3 deposit in the coming weeks. Argonaut is expecting throughput to remain at the revised 3Mtpa rate and pre-production capital intensity to be roughly in-line with the PFS Base Case equating to ~US$230m. The Company is also working on financing options which may include a mix of debt and equity capital with a potential project or TopCo minority investment. BUY maintained.

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