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flyboy77

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25/01/20

15:21

Post #: 42572304
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Originally posted by 2ic: ↑

To be fair hedrox the final environmental permit includes all the compensation for landowners and communities effected for access to traditional grounds, lowering of the local water table which will effect their wells, and all sorts of other mining and post mining commitments. These can be expensive and onerous, it's as much negotiation as it is simply EPA permit approval. Best that 'poor' CDV who has been running the show for years close that deal than suddenly see a rich Gold Fields take ownership at the last minute to be possibly shaken down for more.

Barrick sold Massawa project in Senegal to Teranga last Dec before the EPA permit has been issued in a deal agreement subject to the 'conditions precedent' that the EPA permit is issued. Barrick can do that because the sale proceeds can wait and the deal if it falls over or not is immaterial to Barrick. Not sure it would be so easy or how the market would take a sale deal that would only trigger when the EPA permit was issued. Would CDV be allowed to trade until the permit was finalised, if the shares were allowed to trade (which they probably would imo) how extra much discount shares trade would that situation attract, given CDV would no longer care how good/bad deal the EPA permit contained regards mining and post closure costs would the acquiring company have 'get out' clauses if the permit became onerous beyond a set of conditions... it's possible but just seems so much easier and generates more competitive tension to wait until all lights are green and then ask for final offers.

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When I worked in the game, all that was simply called due diligence.

Absolutely zero need for anyone to wait for the permit to be granted. That's a furphy.

And there is nothing here that suggests the permit will be anything other than a formality.

CDV Price at posting: 37.0¢ Sentiment: None Disclosure: Held
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