WTM own the exploration permit 100%. In terms of monetisation there are a few scenarios. WTM could joint venture the exploration permit with Newmont in exchange for cash and/or exploration spend. Like MAG has done with FMG. Why sell or dilute the Crown Jewels. Complete balls up by MAG by the way. I personally don’t think this will happen while we have major shareholders willing to tip more cash in and continued exploration success. How I see this playing out is WTM retains 100% near term, discovers and defines a huge gold system at surface and at depth, then Newmont offers top dollar to buy either the whole company or the tenement (depends what else we have on the books). Let them buy on market if they want 19.99%. Then offer to buy the rest with a takeover. In return we get cash or shares in Newmont. The question is, how much would another ridgeway + epithermal at surface be hypothetically worth to Newmont. Depends on size and grade. Given the elephant territory and the deposit style, we could be looking at $500m- $1bn minimum. I’m focused on Newmont as the top bidder as they would pay more given proximity to Cadia Valley operations. Spur would just become feed for existing operations. Other bidders would need to account for separate processing and development etc. Think about it like this. If this tenement was currently owned by Newmont and they had these results just over the hill, they would be drilling the crap out of it with many rigs. It would be a brownfields resource drill out.
IMHO and DYOR!
WTM Price at posting:
12.0¢ Sentiment: Buy Disclosure: Held
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