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tangs

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05/04/23

15:07

Post #: 67151261
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Originally posted by jdpc35: ↑

You are 100% correct with your analysis Mulac1.

If they fail to get to 90% and compulsory acquisition:

1. The cash must stay in BRB and used only to the benefit of BRB shareholders (so one avenue would be developing the open cut);
2. If they went ahead with Rebecca, they could look at a toll treatment agreement with BRB, but this would have to be on demonstrably commercial terms;
3. The remaining BRB shareholders would then get the benefit of the development of BRB's resource.

As I have stated before, I think the cash is as important to RMS as the BRB ore, and that is because they have offered a transaction that preserves the cash (1 RMS for every 2.83 BRB). If the cash was not important, the deal would have been something like 1 RMS for every 5.5 BRB plus $0.20 cash.

This has some way yet to play out in my opinion.

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I believe myself what would be beneficial for both companies in that siuation and what would be inevitable if RMS failed 90% would be some agreement on a JV between the two companies to develop with each providing capital .
When BRB runs out of cash for their share they could raise , raise from RMS or give up a percentage of the project to get it developed .

All depends on Tom I suppose as the latter situation mopre complicated for all .

BRB Price at posting: 46.0¢ Sentiment: Hold Disclosure: Held
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I believe myself what would be beneficial for both companies in...

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