Western Copper and Gold Corp T.WRN

Question on agreement with Rio ?

[Marine2]

12 Month extension ??  Nov ?

After all the met work and deep drill results are released, (for all to see) and Rio decides to extend the agreement for 12 mo, is there anything in this agreement with Rio that would stop another company from making an offer for Casino in the next 12 mo ?

What would be the point of Rio extending the agreement if it did not have some right of first offer before any other company could come in with a first buy out bid. 

After all,,,,,  all the DD Rio needed will out for all to see, does Rio have a lock up agreement that stop's all others from putting in a buy out bid for the next 12 mo ?

( I was inversted in a company that signed this type of agreement where no other company could make an offer untill after the agreements final date expired )


M2

[jclarke042]

Let's review the Investor's Rights Agreement from SEDAR. Section 5.2, Paragraph 1 discusses Rio's restrictions on further share purchases - basically they can only subscribe to newly issued (dilutive, to us) shares from Western directly. However, if any third party (NEM, for example) makes a take-over bid, Rio's restrictions are off and they can do what's needed to try &

[MetalMinded]

Except, those conversations with third parties won't happen with the board until there is an offer.  They will happen with Paul and the exec team.  

[Marine2]

Thanks jclarke   It should be open season on the Casino project after all the results are announced !  Many companies will be looking at the results, this will be a copper & gold opportunity they woun't let slip by. IMHO drill campaign In terms of optimization of the project, Western Copper and Gold is trying to further expand the resources. The drill campaign 

[Sooner]

I really don't understand the infatuation with not allowing Rio to acquire on open market. I mean, let's assume in order for Rio to double their position they go out on open market and place order for 10,000 shares every 15 mins for the next 50 trading days. That would get them to about 16% of outstanding shares...yes they would have more leverage but it would also have a very large impact

[GardenManman]

IMHO. If they but from open market. Then get the shares to 20% and get one position of Bod. Then they just walk away. Under that circumstance, WRN will be hard to bring another major for takeover. Then WRN can not move and turn to be dead money if Rio has no further action.

[Sooner]

Not really - they have 50% of Turquise Hill but it's not a forgone conclusion the offer they provided will be accepted because it requires a majority of the minority shareholders to approve...and I will say the offer they gave was a 65% premium to share price before the news...so there was no one pushing Turquise around in that situation.... I wouldn't call a 65% premium pushing anyone

[jclarke042]

No. The funds were trying to push WRN around. And Paul told them Get F'd.

[jclarke042]

Equally incredible for me how some people are so infatuated with "allowing" Rio to buy on open market. Since you asked, it's twofold. First, per Garden/Money, we don't want a creeping takeover. Second, WRN is a close-to-the-vest, non-communicative company. Rio is in possession of confidential info. It'd be insider trading if they were "allowed" to buy on the

[Sooner]

Yeah - so back a few months ago Paul stated funds wanting to invest but he told them ---fine buy on open market. So we think that's good for funds to buy in open market as we think that will drive market cap ...but Rio buying in open market won't???? anyway, yes, I get the point about creep and also about confidential info. I was more pushing for this after Nov and results fully public

[jclarke042]

Funds aren't looking at the met work. They don't see the preliminary assays. Those clowns wanted to push a junior around and Paul rightly told them GFY. Rio has an observer at all our board meetings, the technical committee, etc. They have information the market, including the funds, don't have yet.