Interesting announcement on CR. OXX is a slight positive in regards to their involvement.
Price of 3.5 cents looks good, but the free option attached probably means that the real CR price is 2.5 to 3 cents, after accounting for value of the options.
The sale of 25% of Derby is a worry. Last week Neil wanted the other 50% from Backreef and now OBL sells a part of its equity for an equivalent price. I dont see the differnce between the 2 transactions, so if Backreef is in breach, why isnt OBL in breach for doing the same thing?
The OXX announcement seems to indicate that BRU will be a party to the Derby JV, which probably puts that concept to bed.
Given the size of this investment ($7m gross) I dont see a super-major being that interested, IMHO.
I am still on the sidelines. Good luck to holders.
Al
OBL Price at posting:
3.0¢ Sentiment: Hold Disclosure: Not Held
