Well I will admit I'm a bit disappointed with this announcement.
I personally wanted to see a signed JV, not a LOI or a 'non binding' MOU.
By suspending the stock (rather than just a TH) Range built the announcement up as though it was going to be a signed JV and now I think the market is just reacting like we all probably are at the moment, with caution and a little bit of hesitation / disappointment.
We have already seen the MEPS and the KNOC 'deals' fall through (presumably - I was expecting KNOC to be in involved in this announcement somewhere... ) and we still do not have a date for the AIM Listing. As an option holder I'm now starting (not overly) to get concerned about the expiry date looming in less than 12 months time.
We are, in my opinion, needing some more public information and clarification of the future direction. There are too many rumours around in the market place and not enough company provided information. Rumours only lead to disappointments and then sell offs.
Few questions about today's announcment,
1. Sign on fee....what do we think it will be - as that surely has an impact on the SP as it shows whether CANMEX are keen / optimistic or not. 2. Where is KNOC in all of this? Will they farm in to the potential 20% of CANMEX's share? 3. If KNOC decides they want in, will this now only happen after the finalisation of the JV? 4. When are they planning to start drilling....I was hoping for this year but it would appear not now as we still have no JV finalised? 5. This MOU includes the Nogal Basin AND the Darin Basin...I though the KNOC LOI was only for rights in the Nogal Basin, so are we having to give up even more now to get sign on partners?
Anyway they are just some of my inital thoughts....would be interested to hear others...or if I need correcting.
One thing is for certain, if the share price remains at these levels until the 27th it will make for a very interesting meeting in Perth.
Hevlet.
RRS Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
