A question all... where is this talk of a PE company coming from?
I don't see any mention of a private equity company in either of the announcements. In fact, the use of the terms "private" and "public" are confusing in both announcements. The original one says in one place:
And then in the next paragraph says:
My take on this is that the "private company" and the "public company" are the same thing. After all, a private equity firm is unlikely to be making a discovery in Yilgarn isn't it?
The second announcement doesn't clarify the confusion at all as it still contains both terms.
In all, it's hard to understand the announcement in a way that makes sense.
It can't be referring to a public exploration company that made a discovery and is backed by a private equity firm. If that were the case then they would have a discovery plus equity and GTE have nothing to offer.
The only interpretation that makes any sense to me is that GTE is teaming up with another junior, possibly to use Luckett's geological credentials to add weight to the position. In this case there is no funding. The announcement when it comes will be that the two companies have agreed to form a joint venture and will seek funding to develop the discovery.
If I'm right then I would expect the impact on share price to be pretty yawny.
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