Seeing as we are bandying numbers around then I will put forward my thoughts.
The project cost is $200M including contingency. The Major takes a 40% stake and shares the capital cost in proportion. In addition they buy in to the project for $35M for a grand total of $115M.
Gunson has to find the balance of $85M, and does that by taking 60% bank finance and raising equity of $34M by conducting a 1:2 rights issue at 34 cents.
As I said these are just thoughts, but it looks like an interesting few weeks.
GUN Price at posting:
22.6¢ Sentiment: LT Buy Disclosure: Not Held
