Interesting ad. The financing risk is because of NWE's costs from the takeover bid. Previously, my understanding is that the drilling program was fully funded.
Yep, the share price may fall. I may also increase a lot more than MIN's price on decent drilling results.
I already was a minority shareholder, but I know what they mean. The only risk would be if MIN act in bad faith to the remaining shareholders.
My estimate of the chances of exploration failure reduced significantly when MIN made a takeover offer. Why else would they want to take over NWE except that they expect to see some strong results.
Since its a share swap, it's hard to see any premium. Especially with drilling starting soon. It's possible the takeover offer capped NWE's share price in the past month.
Exposure to diversified operations = lower returns.
You get to maintain much lower exposure and less upside to Lockyer. I thought that was the message of the previous point.
No rollover if they don't get 80%, which seems unlikely. If anyone want to complain to ASIC, this is what I would be looking at if I had accepted MIN's offer. They state "potential". By now they have enough information to know if they will make the 80% or not.
NWE Price at posting:
6.5¢ Sentiment: Buy Disclosure: Held
