westgold is a producer and dividend paying stock, the institutional investors that like those stocks don't have the risk appetite for Junior exploration co's.....they base their investment decision based on a proven resource and cash flows, profits, dividends etc
therefore Rover as discussed in their presentations in the past, was a non core asset of west golds, and with so much work gone into it already and a healthy gold market it made sense to spin it off into its own company and take it to production. different risk factors at play which attracts different kind of investors.
you should note, peter cook who worked on Rover for 10years backed the ipo by underwriting it with $5m of his own cash! and maintains over 5% shareholding.
he obviously knows the exact potential of this resource otherwise why would he risk $5m of his own cash??
don't be surprised if Westgold took over cst once PFS and fid studies are complete
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