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I don't know whats up with the drop rate. I have obtained 4 of these things within 13k coins. I hear others complain about its rarity... but jeeze.. 4?
That being said, you get a substantial ammount of coins back pretty regularly, I reccomend people farming for him to go in with at least 5-10k coins before they start so the returns make it feel like you get a lot more for your effort.
I located several around the Secret lab in ashzara or whatever.