If Zijin can pull off paying $33M for something that was valued at $150M and perhaps much more once production starts then I think it’s worth them fighting for.
I agree that it looks like they are legally going to lose this battle but in corrupt countries anything is possible.
If in fact AVZ is still negotiating purchasing an additional 15%, how will they going to pay for this. Sell 24% for $240M and buy 15% for $150M. If they don’t buy the additional 15% they will own 51% with at least $240M cash. Enough to fund the majority of their share of development. If they buy the additional 15% they will own 66% and have at least $90M in the bank…hardly enough to pay for their share of development costs. So more dilution on the horizon??
NB: All in USD.
AVZ Price at posting:
78.0¢ Sentiment: None Disclosure: Not Held
