exxaro hypothetical - poison pill

Disclosure - average cost $0.41 - sold out avg $0.31.
Disclosure - watching for lower re entry point.
I sold because of my fears that RES cannot fund the equity (well they can but to the detriment of current shareholders) and because of management refusing to release info that is not sensitive. I asked the company for the terms of the Put option they granted to Exxaro for the mining rights of the properties RES acquired in March -the company refused to provide - Why would they, shouldnt we have access to that amount????.
If Exxaro exercised the option RESs resources would upgrade by 31% so they probably have a significant value. Lets just say the put option is worth $25m ???? which is not a lot.
If I was the CEO of Exxaro I would excercise the put now and have RES floundering to fund the aquisition from the $12m funds at hand - a deal from which they cannot escape -watch the sp tank and then step in and buy RES sub $0.20 to start the process of consolidating the land holdings in the region which probably needs to happen. Exxaro hold the strong hand with Transnet, Eskom, everyone so why wouldn't they use it, via scheme of arrangement they could even involve our Indian shareholders with a side deal to placate them - this is all about business,competitition and using your leverage.
Just food for thought , hypothetical and a counter for the "PJ Has This Covered" view.
The Put option has not received a lot of comment here on HC and really it should have.
I truly hope that I can pick the bottom of this one, mgmt have done very well generally in trying circumstances, what a wonderful asset.