Still thinking....
Can see plus and minuses on both sides. The real problem for me is not an Australian asset, so harder to fathom.
Plus if accepted
Found resource and possible extension is significant and could support at MC of $35M.
Drills will go into significant targets based of good EM work, could get company to $100M with drills that have some forecast validity. Au and cobalt are fashionable and desirable, the geology has pedigry.
Cash in bank of around $5M maybe a little more if high take-up rate for offer will support drilling and company for 1.5 years.
Rights issue to management based on targets above neutral market cap. So the management needs to drive value for shareholders.
Toby is onboard, has background in Swedish mining strangely. Thinks positive for DCX shareholders, he has a much better perspective
Minus
Major asset in Finland
Bigger salary profile for management in 2 countries.
DCX will have to pay cost of failed TO, probably around $350k.
Capital raise by small DCX required, dilution will probably be around 30% for $1.5M in bank. Though this will allow some drilling on highly prospective ground.
PGD will drill in Newman near our leases soon, very hopeful extend their spotty find. This could drive a smaller DCX MC up rapidly....
Loose leverage to find being extended by CNB and our 17.5% interest, with significant copper found.
What would Toby do?
CNB less likely to takeover DCX, given expanded MC outside of Duchess.
Not so worried about environmental risk in Finland, looks solvable or at least workable. Timeline on mining would be short, leases extended for about 4 years...need to mine to retain.
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