I'm pretty sure at under 20% we can do what we want. If we buy on market and get over 20% then we have to do a takeover and then I believe we can't offer less than what we paid on market.
However in this situation I believe with the companies approval we could raise the $40M and end up with close to 50% of the company. This would be approved by an extraordinary general meeting they would hold. Again this would only happen if ours is the best offer.
Other alternatives would be them to raise cash by selling something to us, could be their stake in tenements we are keen on.
GXY Price at posting:
$1.18 Sentiment: None Disclosure: Held