The way I look at it is. They are selling Railway only which has been valued at $204 million or $1.30 per share.
They need to come out and tell us what is going to happen with the other tenements. If they are going to be kept and traded under a different company name, and all share holders who do not sell their shares to BHP, have a stake in that company in proportion to their holding with UMC.The shares on offer lets say are 40 million shares with App; $8 million in cash. UMC have done enough drilling to have a fair idea as to what the tenements prospects are.They then drill away on the most prospective/cheapest and quickest tenement to get to mining stage.
We would have to get a new group of management to go ahead with that,and produce the past drill results.
I have just thought of a group who would be able to do some thing with the other tenements.It has just come to me as I was typing this. I think I will make a phone call. They could already be looking at it with Asian partners.
Regards Westcott.
UMC Price at posting:
$1.27 Sentiment: None Disclosure: Held