Taiga Gold Corp. TGGDF

Consider: JV spending requirements vs cash buyout

[Newton1234]

In a JV with a major, the junior is on the hook for matching spending pro rata. So if SSRM starts spending tens of millions on development then TGC must match or risk getting diluted down to a royalty.

If there's no takeover and it's just the JV then there is potentially a big financing requirement for TGC in the future. Very complicated strategic issues that can result in the little guy getting squished. In comparison, an all-cash buyout is simple.

Something important I like to think about in situations where a junior has an interest in a JV with bigger company.