Misfitsthe upside can only come from two avenues in my...

Misfits

the upside can only come from two avenues in my opinion.

1. Mining the platinum resource.

For that to happen where will the $600m development funds come from? Genorah has no money. With their questionable management performance who on earth would lend them funds?

Zijin has not offered any development capital as yet.

NKP has no funds and unlikely to succeed with any massive capital raising.

We need to wait for details.


2. Takeover offer

I would not be surprised if Zijin has not already negotiated with Genorah to take over their entire NKP holding in exchange for contribution towards development costs. This would result in a takeover of all NKP shares and options held by Genorah. Remember Genorah has 26% ( BEE) of the project. Zijin can not develop it alone.It must be a joint venture.

At what price the DEAL may never be disclosed fully.

Minority shareholders are all looking to be taken out with a reasonable offer. In theory this should be reflect by an independent valuation of NKP. Who will pay for the valuation Zijin or Genorah who has already consummated the DEAL? Count NKP out as minorities have no say.

If Zijin decides to lodge an opportunistic low ball offer it will be interesting to see how many shareholders/Option holders cave in and exit.


The period after official granting of the Mining Licence will be an interesting time.

Cheers