Alligator river is the kind of an asset you can only buy when it’s for sale, IMO it was a great move at the time and should eventually pay off for the company but the way the deal was structured stinks of arrogance at board level.
They could have easily raised the full consideration at 11 cent and probably negotiated a better deal with Cameco for up front payment but they choose to gamble on a turn in the uranium price instead.
This is another tough investing lesson for me, management teams that seem to have a crystal ball should be avoided...... Its possible that they will end up raising money at 3 or 4 cent to part pay for an asset that they purchased when the share price was 14 cent.
No wonder the market is so wary of this company.......
VMY Price at posting:
3.4¢ Sentiment: Hold Disclosure: Held
