I'm sorry I can't agree either reactor. The 'bird in the hand' argument only applies here, and weakly at best, if you ignore how MGY got to this situation and if you ignore the fairly glaring distressed pricing structure of the disposal agreement (Molo is an amazing project-some of the information being posted on Stockhouse for Energizer is really exciting). Big 'if's'.
The reality is that IF MGY had done more than just "kick rocks and call it 'exploration'", as another poster so aptly put it, these last two years, and IF in particular they had used their own rig and equipment to value-add near Molo (where they said they were going to), then our SP would be in all probability somewhere north of where it languishes now, any CR's would be correspondingly less dilutionary and most importantly, the dealings with Energizer would have been significantly more weighted in our favor and not theirs.
The really ugly part of the truth here is the fact that MGY management at the time should have picked up on Molo once Energizer specified graphite in the proposed agreement.
You can see Molo on Google Earth from space.
If you look back at previous reports from both MGY and Energizer you can read that abundant graphite was not only known but was actually a problem for these guys exploring for nickel and other metals with geophysics. Graphite was also a big problem for Energizer when they were still chasing vanadium (anyone remember the Green Giant Vanadium project?).
The presence of graphite was certainly no secret to anyone paying attention if you look at the old reports for both companies. Graphite only went from being a problem to being the main show in late 2011 when the global prices spiked.
Fortunately for Energizer shareholders, their board and their geologists were smarter than ours.
Bottom line - this deal is the sad culmination of a sequentially mismanaged asset and a non-existent exploration program. OZ
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I'm sorry I can't agree either reactor. The 'bird in the hand'...
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