Say 5, 10 or at the most $15million for the lease unless it is a monster (doubtful), 5 is probably way too low and 15 would be a bit too high as the leases value would significantly diminishh to any other holder than BTU due to syngergistic benefits.
So that question again
Why raise the additional $40m?
A1 - To ensure that Escarpment is fully funded. For what reasons.
To put more pressure on an off take partner? - this doesn,t seem to gel as part of the modus operandi to to squeeze a bucket of money out of any partner, To help fund the project moving forward. However maybe they could squeeze additional premium out of a partner if there is no up front money.
To de risk the fanance side of things in case of GFC 5 (or what ever we are up to)
A2 - For further acqusitions? OMG
A3 - To allow some more big money on to the register. Why?
to shore up the defences against a take over in the short term, until at least everything is neatly packaged. Thereefore ensuring any take over is at full value to existing share holders
Just my thoughts so far
Viney
BTU Price at posting:
$1.17 Sentiment: Buy Disclosure: Held
