Hi Eshmun, I think its worth remembering that the JV with Rio Tinto was done at a time when Antipa's market cap was only a quarter of what it is now. 4.4 million dollars only with a EV of only 3 million. Also to even get to that 51% they first have to spend 11 million dollars.
IMO this was an exceptional deal for AZY and remember they were selected by RIO from 100's of hopeful junior miners..
(And at the same time they were quietly going about securing Minyari for free.)
Of course Rio want to protect themselves if they are coughing up that kind of dosh. They have just agreed to potentially spend up to 60 million to acquire 75% of a project from a company with a market cap of 4 million. Its natural they want to prevent AZY from being taken over on the cheap by a competitor especially if they wish to proceed to get 75% by spending 60 million. Or indeed buy Antipa out completely of Calibre in due course. Much more attractive, I would imagine, to be trying to buy antipa out of a 49/35/25% share than, lets say, BHP.
And if Rio Tinto, with a market cap of 82 billion is being taken over, then why on earth would Antipa want to assert its rights to buy back the asset? Why not go with the flow with the new megamegamining partner?
In any case I don't think management are aiming for a take over anytime soon. IMO they are aiming to develop Antipa into the real deal as they did with Lion Ore before selling it for a few billion.
IMO possibly the only thing that stopped us being swallowed up by Rio was the strength of our shareholder base with Mark and Bob Creasy both as significant shareholders and management holding over 15% all no doubt with a long term view.
I'm not the slightest bit worried about the above clause, fair is fair from Rio's point of view. Let Rio develop Calibre (hopefully - we know there's millions of ounces there after all) whilst AZY focuses on Minyari and all their other potential targets. Next few years are going to be interesting ;-)
AZY Price at posting:
2.5¢ Sentiment: Buy Disclosure: Held
(20min delay)