RE:No French Court decision Yes, we have this decision to arrive but when is another question in today's environment; especially based on this recent news.
Good to see that OREA is now making a move directly towards NG with regard to Montagne d’Or. At least we are out of limbo. What will happen? IMO, NG has to feel they are also have a real stake with asset value here.
NG’s legal action is likely stalled re., their French Russian 1989 Investment Treaty approach. With the Ukraine situation no doubt the French could have slowed this process down for years in the court. Further, Mordashov regardless of his recent family NG holdings contortions was also facing a possible mine asset annexation. He could have been leaving FG with zero assets or facing years in litigation.
Therefore, will NG put the asset entirely into OREA’s hands (for who knows maybe a new NG 10 - 33% ownership stake)? OREA can’t pay anything now in terms of asset valuation % to NG. Further both companies know going to the C of Arb against each other (or France) would take years and benefit no one in the long run. Also, NG knows if OREA goes the French court route against them then they may well lose the asset, but again, this could take several years to play out.
So, will OREA take majority control of Montagne d’Or (via negotiation) and then undertake a sellout of the asset to the French gov’ with NG getting its ‘new’ %. Again, this would be a win, win, win for all 3 entities who until recently (even going the French court route) were looking down the barrel of a messy, negative public relations, costly, ongoing legal process. NG and France should be very interested in this new possible approach.
Or, very speculatively, might OREA (and NG) find a Chinese mining major who would pay a lump sum (you put in a number) for the right to hold Montagne d’Or (as long as it gets the concessions renewed) for years to come. At least until Macron is gone and a more mining friendly/FG jobs focused French gov’ arrives (Chinese major did this in Afghanistan with a 14 -year hold on the Aynak copper project)?
As usual, JMHO.
GLTA -
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