Was just about to write something very similar myself - the JV was a major blocking mechanism that has kept RXL/Youanmi undervalued.
Some posters have been wanting to put a dollar value on today's transaction but it is very very arbitrary... it would have been half what it is now before the [email protected]/t Youanmi South hit less than a month ago...
In simple terms (imo) VMC has traded 1/3 (or so) of Youanmi for 1/3 (or so) of RXL. One half of their 1/3 they will return to VMC shareholders and the other 55m shares they will retain in RXL (escrowed for 12 months). This is a huge vote of confidence imo in the new RXL! They won't want to be unnecessarily diluted or bought out cheaply (just like any other shareholder) (and they will have a member on the board to keep RXL honest).
Let's also not forget that this deal wouldn't have been possible until RXL had divested its nickel asset in Fisher (I personally banked $25k thanks!)... And while things have certainly taken a lot longer than one would have hoped, a bigger plan is slowly emerging.
Let's get lucky and smart... Youanmi South the new Penny? and RXL with 3.2 Moz at 3.5g/t...
Definitely think this is a win-win, and RXL now unshackled and open for business.
GLTH
RXL Price at posting:
27.0¢ Sentiment: Buy Disclosure: Held
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