Bigscott,
I think that the indications have been that drilling etc would be carried out from the $1B.
How would this work? Most likely in my opinion is that all the CVI assets will be transferred (as per a mortgage) to the SPV entity and CVI would get a percentage of the SPV. CVI will then be the manager of the SPV, with clawback capability.
If resources and cash in the SPV get valued at (conservatively with $1B cash) $1.5B and CVI owned 20%, the market cap calculation should put it at $300M (or about 40-60 cents odd). CVI would have a clawback option in there to buy say another 20% for $400M. CVI could do that by doing a placement when the share price is high.
They would not need to do a placement in this scenario however. They could bide their time until the share price is right...
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