Thanks Spec.1. I think you are underestimating what a...

Thanks Spec.

1. I think you are underestimating what a significant number of SPR holders will want for their shares. I could see RMS going over 20% holding and announcing a TO offer but I can also see it stalling, increased offer, still stalling. Maybe they would get to over 50% but so what? The one thing they couldn't use a majority holding to do is make favourable deals with themselves. They would need to get over 90% and then compulsory acquire the rest including mine.

2. Really can't see them getting to 90% on a first TO bid. Too many holders would want $3 or more, and any increase would have to paid to all who had accepted the offer.

3. So they will have to wait 3 months and then mount a 2nd TO offer at a higher price (that wouldn't have to be paid to those who accepted the first offer). Meanwhile SPR will be moving into production and unless a tunnel floods or something the $3 holdouts will want even more. Moreover the "75%" rule kicks in for compulsory acquisition ... 90% of shares issued plus 75% of shares available at the time of the offer ... they could easily end up having to get to 95%.

4. I can't see a scheme of arrangement either ... too one sided. Why would SMS want to attach itself to the company you describe? A bit more ore for the mill ... better ways to get that, if not through exploration then SPR would be better off swallowing smaller players. Give it two or three years and one of the options might be to swallow RMS struggling from lack of capex, lack of exploration, as you describe.

Doesn't matter if I am right ... all that matters how many shares are in the hands of holders who share my optimism (or delusions) about SPR's prospects on its own. I don't think SPR is for sale at price RMS could afford.