re: Ann: POSCO to Invest in the Coburn Zircon...
The 40 Million upfront payment into the JV has changed.
If I read the announcement correctly the structure of the payment is also changed to following.
1) 7 million paid to Gunson 2) 21 Million paid to cover Gunson 60% of 180 Million. ie 108 less 21 = 87 left for Gunson to fund through debt and equity.
So Initial 7 million Gunson can do with as they please so to speak although they could pay down their share of investment to 80 million if it was all used to that development.
v's (Old deal)40 Million paid into JV which would have reduced burden of borrowing for JV entity to 140 Million and 60% of this is 84 Million. Hence this deal is actually 4 million better off for GUN if my understanding is correct.
At least we are closer now just the debt and equity which also will be interesting.
GUN Price at posting:
15.7¢ Sentiment: LT Buy Disclosure: Held
