Has to be, they have enough money to cover the drill program and on-going works until late in the year. To raise now, I feel like it's someone wanting to get in. I can't remember if Emerald have non-dilutive rights, but this could push them under 20% which is a good thing for shareholders and competitive tension if a deal is ever considered in the future.
I have wondered if Ramelius is watching this given their latent asset now at Edna May. I think it's dumb to sell a 2.9 mtpa mill, because you'll never get the replacement cost back in the deal. I thought it was dumb when Westgold sold Lakewood (1 mtpa) for $80m because it would cost way more to build from scratch. The smart companies are leveraging mill capacity by buying cheap ounces.
Anyway maybe a fundy and not a strategic but the outcome will tell us a lot more about what we have here.
GHM Price at posting:
48.0¢ Sentiment: Buy Disclosure: Held
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