Your ownership post JV isnt correct to what I have researched. Genorah will give up their out right 26%, Nkwe will give up their 24%. Genorah having a 60% interest in Nkwe means they will have a 30% direct interest after a JV above the required 26%. Now that extra 4% equals approximatly 80 million shares which is the ammount Nkwe has to do a capital raising or in my view is the ammount Genorah will off load on the South African stock exchange if a dual listing takes place giving Genorah cash.
Some people think that Nkwe could keep raising funds and have something like a billion shares on issue, this is an impossibilty without fully funding the projects themselves or giving Genorah more shares for free. Bluenightingale also have a interest in Nkwe South Africa but was told by PL in a phone call this did not involve Garatau or Tabatse.
Nathan I also think people cant say that because Genorah own such and such of Nkwe this xxx percentage is left, if you wish to do that you also have to reduce the share holding. Example is Zimplats with 100 million shares on issue and Impala own 80% percent of the company, people do not break down the company holding to say Zimplats only have 20% of the resource, Zimplats is Zimplats regardless of whom owns what percentage.
Will try and find the link again to back up my claim of percentages post JV in the next couple of days.
NKP Price at posting:
24.5¢ Sentiment: Hold Disclosure: Held
