The people who give this a great analysis should be ashamed of themselves!
The WDS option does not just disappear and anyone who may considering buying PCL will take it into account in determining the value of PCL and whether they want to be involved or not. Do you think the contract with WDS just disappears with a change of ownership?
Bill is correct "Your statement "Even if a third party bought out PCL at enormous profits to holders, the contract with WDS still stands" does not hold water until WDS executes the option." The point is, as you stated, the contract with WDS stands and they have the right to exercise that option.
"Until that day little PCL is still majority holder of a hotspot PEL and a free agent." Basically, the majority holder with a damn big mortgage on it. They are not a free agent in the sense any sale has to honor the WDS agreement.
If a super major finds value in PCL, then there is even more value to WDS. PCL can't even use the 3D to sell the tenements as I understand it - the 3D is owned by WDS.
Do you truly think a super major is going to swoop in and be happy with a 20% or less stake and no control over what happens? The option agreement gives WDS operatorship. Dreamtime at the G?
PCL Price at posting:
1.5¢ Sentiment: Buy Disclosure: Held
(20min delay)