...However, the question then to be asked...what's in it for KAH? Any such deal must survive shareholder approval and we would then be talking about the combined weight of EXT AND KAH Shareholders. This may well represent the first significant showing of RIO's hand thus far. KAH are an invested shareholder, not an end user, so we can rule out off take agreements. We have to ask ourselves, what would induce KAH to agree to a JV given...
A) they are just an investment vehicle with EXT as their single significant asset
B) they have no cash (CR required just to pay for proposed placement)!
C) Until they (KAH) are cashed up (via sale of EXT at highest price), They are trapped in a cat and mouse game with RIO forever!
More to the point, we all know that the majors are intimately aware of the contents of the DFS by now and once the lid is off, they run the risk of an open bidding war with parties who may pay what every it takes to secure supply. THIS is why KAH wants the placement to go ahead...to give EXT time to put on it's party dress and see who REALLY wants to dance.
EXT Price at posting:
$9.56 Sentiment: Buy Disclosure: Held
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