I don’t think Renard or PWM explain this move. Regarding PWM, we already own 19.6% of their register; if Chris pulls the trigger on the 7.5m options, then a mandatory takeover bid is required in accordance with TSX listing rules, which seems super unlikely given that PWM is currently worth more than WR1. I suppose WR1 could sell off a chunk of their current holding first, then exercise the options at the lower price to stay under 20%. But that would obviously result in a ~C$3m profit, and wouldn’t provide a reason for the cap raise.
On the Renard front, the payment was renegotiated to a C$1m payment at the end of this month, and we have well in excess of that in the bank right now.
I’ll reserve judgement until we see the details, but I won’t be pleased if this is a cash bump to go drilling again; they made it clear that we weren’t going to drill for the foreseeable future in order to preserve capital and avoid raises just like this.
We’ll see.
WR1 Price at posting:
42.5¢ Sentiment: Buy Disclosure: Held
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