Horizon CopperPending the completion of the acquisition of the Antamina copper stream from SSL by Horizon, Horizon (HCU) remains halted for trading on the venture exchange.
In the meantime the ETG shares sold for 87 cents have appreciated on the back of the Rio Tinto takeover of the public float of Turquoise Hill Resources (ETG's Partner at Oyu Tolgoi in Mongolia through Turquoise Hill's Mongolian Venture Company, OTTLC). In any event the ETG shares have appreciated by about $15 million CDN since they were sold by SSL. Granted SSL at the end of the Horizon Copper transactions will hold 1/3 of the Horizon equity, but still, another $10 million net has slipped away from SSL and into the hands of the other Horizon shareholders.
The participants in Horizon's PP transactions, and recent exercises of warrants in Horizon, include members of SSL's management. Seems like they have increased their personal exposure to the upside in Horizon. Conflict? It's a very opaque transaction if you ask me. Will be very interested to see what price Horizon trades at once the several-months long trading halt in the old Royalty North Partners venture listing (the Reverse takeover vehicle renamed Horizon) is lifted.
It all seems a bit shady and awfully clever, but I stand to be better informed or educated. I understand the underlying idea - purify SSL as a pure gold play better suited to find merger partners and thus increase their book of business and market exposure with a bigger market cap. Simultaneously establish a copper streaming vehicle to take the streaming model into the copper space in Horizon. But the ownership, the pricing, and where the money sticks is what has me scratching my head.
cg