Post by
tony1969 on Aug 20, 2013 11:03am
I believe that negotiations with Bendon are going to be tough....
They will likely end up diluting TGZ a good bit as I think that TGZ will have to give them stock as well as cash and royalties. They are not happy with the way OLE's deal got done so they will probably take their sweet time and will have to be dealt with before OLE's gold is mined.
Here is a quote from Bendon's lawsuit:
"Under the shareholders' agreement, a change of control in the operator (Sabodala) triggers Bendon's right to remove the operator. If the Takeover Bid is successful, and Teranga obtains control of Oromin, Bendon will remove Sabodala as the operator of OJVG Gold Project."
Sobodala Holdings Limited is Oromin's wholly owned subsidiary. Oromin would be removed as the operator and replaced by Bendon. In my opinion striking a deal with TGZ is Bendons' best option and they will end up getting a good bit more than us OLE holders did. All just my opinion.