Ok so it seems probable GXY will buy into the converter its been searching for off the back of Burwill. 50/50 JV with Jiangte.
Any ideas on what the cost for something like this would be to GXY?
Previous post of mine considered an A40 purchase:
Here
Jiangte and GXY own approx 22% of A40.
Current market cap au$120m less au$40m debt. Lets call it au$80m.
80m X .78 = au$62m
GXY and Jiangte could split the debt and the remaining market cap 50/50 to form a JV at Bald hills.
Costs to GXY:
debt 40m
Penalties 5m
equity 62m
50% (107m/2) au$53m
US$37m
@Facthunter is spot on GXY board did not put $22.5m into A40 to watch it tank. This was strategic in every essence of the word.
So - How will the 16.5% short position view the above scenario if it where to eventuate? Genuine question. The only way it seems we will see a higher share price is if shorts are forced to cover. They are refusing to cover despite what appears on paper to be fantastic gain! A + B is not equalling C.
