Post by
miningfundi on May 16, 2023 1:32pm
Red Chris - what's next?
I believe that Newmont will acquire III's 30% of Red Chris, and that it will happen reasonably soon after the N2 merger - Newmont will not want to bother with a junior mining partner. There are probably three alternatives, each of which will require ME's consent since he owns 49% of III.
1. Newmont will acquire the RC interest directly from III for cash. Newmont's top preference.
2. Newmont will acquire III for cash.
3. ME will acquire III for cash, sell III's RC interest to Newmont for cash, and sell III's remaining mineral properties to a listed junior for cash/shares. ME's preference if he is not happy with Newmont's pricing of Red Chris or III.
Regarding timing, Newmont will prefer to do the deal sooner than later i.e. before the completion of the Mineral Resource Estimate and the Feasibility Study i.e. to keep the acquisition price low. ME will prefer to do it later to support a higher price.
Interesting times ...