Bloody atroscious deal for ORP shareholders that were in the company for the Cu assets.....
$2.5m for 500000t resource at 0.5% Cu cutoff is chicken feed. The in ground value of the copper at todays low copper prices is $4.6 Billion.
ORP should have taken a royalty payment for any production from the resources. At 1c/lb this would equate to $11M if 500,000t of copper is mined out. Even a 0.5/lb royalty payment would have been better than just settling for $2.5M payment for declaring a resource of 500,000t that is worth inground $4.6B.... Lumwana for example has 7.1Millon tonnes of Cu Measured and IndicatedCopper Resources... Valued at $66B
Definition around whether the resource is defined within the inferred or measure category of a resource hasn't been disclosed. Very sloppy on both companies behalf. There are big differences in how to get to measured vs inferred....
PSC shares and options will not be distributed to the shareholders as a inspecie distribution as the company will hold onto them.... Too many tax issues for them to deal with.... I agree would prefer to receive stock in PSC as this is why I was invested in ORP in the first place.
ORP Price at posting:
8.9¢ Sentiment: None Disclosure: Held
