Mason Res Corp MSSNF

Something doesn't add up

[baystock1]

Why would the turkish company spend more than $100 million to build a mine for only 50% share of the earnings, when they could do a hostile takeover for $20 million and end of with 100% share of the mine.

The fact that MNR is languishing at only 11 cents despite the PR about the JV negotiations can only mean that MNR will end up with less than 50% of the production profits. My guess is that $16 million buys an initial 50% stake. And from there the turkish company earns their way up to say 70% by getting all the permit approvals. MNR may end up with 30% share of production, but they would still need to pay their share of the mine development loan from profits.

I think an upfront $40 per oz buyout would have been a better deal for shareholders, but then PG wouldn't be able to continue to rake in his huge salary.