It seems from my reading that by issuing the shares to igc, nkp have given themselves another 6 months to actually buy out igc at the fixed price of 60 mill, plus cash.
What a smart move - nkp will continue working on their feasibility study and have a much better understanding of the numbers. If metal prices continue to improve, as is predicted, then the buying of igc will look cheaper and cheaper, especially as igc burn through their cash. NKP will also find funding a lot easier to come by.
So, by the end of the year they could well own a bargain basement IGC, have the feasibility completed with Xstrata giving them a cool 20 million for the privilege of free-carrying them through to mining.
All of course of a known, world class platinum resource that has a great deal of potential to get bigger.
Not necessarily an overnighter, but plenty of potential I believe.
IGC Price at posting:
25.0¢ Sentiment: None Disclosure: Not Held
