Royal Nickel Corp. RNKLF

RE:Selling 1/2 the Nickel project makes no sense

[factRbest]

baystock1 - (10/22/2017 3:54:01 AM)
Selling 1/2 the Nickel project makes no sense

The JV with Waterton on the Dumont nickel project doesn't make any sense. As was already pointed out previously, why sell 50% of what is supposed to be a world class nickel property at what looks to be distressed prices just so as to raise some funds to be used to buy more distressed nickel assests. It just doesn't add up.  It would have made more sense to just sell the whole property for $50 million.
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When I first saw it and previously warned it was a strong possiblity only one answer makes sense.
They wanted Dumont off the RNX books to make the Beta mess look better.
Never did I think they would go to the extent of giving away have and then putting their 15 million dollar half into a fund.
You are right taking cash to save the company would have been better.

Looking at this only one opinion of why comes to mind.
They firmly believed that fortune was just around the corner so they continually trimmed around the edges believing it would be the last time.
Three loans at increasing rates of interest of 10, 12 and then 15 percent tells the story.

Shelby made some bold comments on the Denver video.
Here's to hoping that it comes to reality.
That said, Shelby has burned that bridge of trust with his we turned the corner comment only to put out a horrible quarter just a month or so later.
You can see on the chart the positive share price reaction to that comment and the market has never forgiven him. Now it is and will be proof before belief.

I have already said it.
Don't be surprised if the first purchase (and only) that the Wateron JV makes is the Beta Nickel. Of course it will be bought for pennies on the dollar.