Enjoying the discussion. Deal looks like an exploration earn-in that will morph into infrastructure and offtake services if things pan out.
The 49% / 51% split is because significant exploration is yet to be completed at McIntosh prior to any FS. HXG has JORC'd a small sample and tested its quality. Good news is those results were good. On the back of good test results HXG has assured everyone that remaining un-JORC'd areas are a) significant in size, and b) of the same quality as those areas already tested. Might be true. Might not.
Anyway, MIN has taken a big bite here and HXG mgmt will now shift focus to becoming a
product refiner. That's probably why the shareholder vote is proposed. A vote will effectively ratify the underlying change in company focus / commercial strategy.
"Conserving the capital structure" seems to be code for low debt + a tight register. If that is the right interpretation then earnings for shareholders (including mgmt) should be relatively strong...but in 3 years.
If I've missed something or any of the above is blatantly wrong then rip in. Nothing worse than misinformation on the forum.
HXG Price at posting:
24.0¢ Sentiment: Hold Disclosure: Held
