Hi yanlin, The first reason (direct extract from broker offer document) seems plausible enough, and you could be right about the reason why the company needed funds to retain 100% of SDV. I'm just speculating here, but it would seem possible to me that some of the majors may have wanted a chunk of SDV on less than favourable terms than what AT was satisfied with, at a discount to the premium price that AT may have been asking. Or, it may have been that when all of the numbers were crunched on the JV percentages, retaining 100% ownership of SDV was always going to be the most profitable option, and the new team members, that have been added,who will now be working on the SDV project, will have the necessary skill set, expertise, and years of experience notched up between them, to progress SDV as quickly as possible. If AT did take advantage of the market anomaly to raise this cash, then it shows me that this was a strategic move on the part of management, and we already know that he is such a skilful negotiator, and wouldn't be pleased with less than the very best prices from any possible JV partners. If there is any short term pain for long term gain, then I think that many people would deem the CR to be worth it. The market cap and share price of a company with 3 assets in ramped up production, over the next several years , should be something to see, and place GXY in a very sweet position. Just some of my thoughts/speculations, and I know that A/C will provide a very good answer for you, and may even be able to find out AT's /management's reasoning on the email.
We'll see what information the announcement due out today will provide.
