if that is the case then it is more important that they get a deal done or else they will have to deal with someone like AGO.
if they end up dealing with AGO you can bet that the top 3 or 4 people at AXO will be looking for work once AGO gets control.
it all makes sense though, AGO raise a big chuck of cash and AXO doesnt have much cash left. the current market cap is around $68m fully diluted, for $100m ($25m cash $75m AGO scrip) we could be AGO shareholders.
the sad thing is this, ERA made $120m profit for the half and they have a market cap of $4.5b. If AXO could get into production then they could still pull in $200m pa in profit for a 50% holding in balla balla. on those numbers the equity should be worth at least $4b, or $20 per share if they end up with only 200m shares.
if AGO get hold of this company then AGO shareholdes will get all the upside and the chinese will be shafted again.
AXO Price at posting:
32.5¢ Sentiment: Buy Disclosure: Held
