I believe CFE can effectively do with the $375M as they please (but some will undoubted be reserved for Marampa related costs - they will retain 25% after all). I believe CFE will invest some resources in the new company to get the ball rolling (wages, admin stuff etc).
Think of it this way. If you own 100% of a company you have to pay all the expenses and wages etc. If you are in a 50/50 partnership, the expenses would be split 50/50 unless there is a prior arrangement.
I doubt CFE's share (in cash) will be 25% of the 500M or so stage 1 cap investment. Chances are this will be a mix of cap raising and debt(loans).
Capital Investments will always be needed 'down the line' at some stage. ie: exploration, further exploration, even more exploration, etc etc. They will most likely negatively impact share price due to dilution. You can either lock in early profits or wait till something like production for what should theoretically be more profits but over a significantly longer time frame. So technically the drawback is true.
Also for what its worth, CFE's cash from a successful IPO may be closer to 75% of $450M with on average 10% being taken by the company(ies) floating the IPO.
CFE Price at posting:
54.5¢ Sentiment: None Disclosure: Held
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