Personally I think it’s ok for GWR as they also get to monetise the already held shares on top of the vendor shares. Don’t forget it is the money raised by CIZ that will fund the exploration, therefore saving GWR having to commit to funding.
GWR hasn’t done anything much with the tenements since acquiring them, so haven’t value-added to them. Therefore the CIZ shares being swapped for the tenements probably covers GWR’s out of pocket expense so far.
No tenement has a defined resource. The only thing they have going for them is their prospectivity, but they need quite a lot of time and money spent on them. It is the possibility of at least one prospect reaching mine stage that allows any money to be raised. It’s the new investors who are taking all the risk here.
Imo it’s a good deal both ways if it comes off.
CIZ Price at posting:
4.0¢ Sentiment: None Disclosure: Not Held
