RE:Non core asset saleRYUcan,
Yes, I did speculate a bit on that a while back, but don't recall the exact number. Selling non-core assets would be my preferred route, since the purchase of Murgor (EO's doing) resulted in AZX assets located all over the place. It's difficult to focus on anything. So selling of the 2 largest assets in Manitoba would be the first choice. In total they amount to about 1MozAuEq (they are Au/Cu properties) and the best fit would be for Hudbay to come in with an offer. It would depend on the negotiation, but even at $30/oz in- situ would get $30M cash which is much better than $20M equity financing by EO with a potial of 35-55% dilution depending on who you are talking to. EO would say 35% dilution, but the current BoD said 55%. Whatever it is, the dilution is huge. Selling of non-core property would not dilute the share structure and would not bring the share count to way beyond the current 600MsFD.
Selling one of the properties e.g. WIM, the larger one Cu/Au, would fetch more than 50% of the total. So, AZX negotiators get going and bring in some cash. It would be good to do this before the Special Meeting.
Imagine shareholders reception if they have a deal for about $20M without any dilution before the meeting.
GH
---------------------------------------
RYUcan wrote:
Any opinions on this sale of assets? I believe GH did an analysis of the value of these assets.