GREY:OLEPF - Post by User
Post by
jredocon Oct 17, 2011 1:21am
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Post# 19154813
Mill financing
Mill financing Am I correct in understanding that
a) a mill has to be under construction in 1012 for the joint venture group to maintain the concession with Senagal and,
b) if a mill is undertaken the Saudi partners guaranteed financing?
If my assumptions are correct then the question of a sale and at what price is not entirely related to dilutional pressures on the sellers. Potential buyers have the pressures that commencement of mill construction or actually taking a mill to production would exponentially increase any potential sale price. This coupled with the time/value of money and the limited supply of new deposits of minable size should make any negotiation interesting.