NKWE didn’t want to do a deal with script, it would dilute their shares too much. Look at the announcement, ‘At this stage NKWE proposes funding the IGC transaction by way of a royalty financing arrangement or a derivative product and is currently in discussions with various parties to this effect.’ The statement, ‘A royalty financing agreement’ indicates that they are already well down this path, presumably with Xstrata & that they will provide the financing now that NKWE need to buy out IGC, pre-selling if you like some of their platinum that NKWE will eventually mine.
The other point of the announcement is interesting,‘Given the likely delay in receiving a final copy of the draft independent valuation both parties have agreed to use the draft as the basis of their further negotiations’. What does this indicate? Full ahead & don’t spare the horses. Everybody wants this deal done & now not later. We’ll probably have a shareholders meeting in a little over a month & our money shortly there after. To get it all through I would expect a price closer to the 50c mark.
