RE:RE:RE:RE:News out from XGC....If they buy shares in a piecemal fashio to get to 66.67%, my guess is we would all be quite happy due to the corresponding rise in the share price. If they are in that position, they cannot simply put a secured loan on Timok, manufacture a default and take it away. Sounds nice and tidy, but you may want to consider the impact of Canadian corporate and securities laws.
Also, just an observaiton about all the NSU shareholders (and NSU trolls) who keep banging the drum about what a great deal the RMC shareholders are getting. NSU represents the classic "nice house" in a "really bad neughborhood" situation. Bisha is a great mine in a horribly unstable country - hence the reason NSU's share price has not done much for quite some time. NSU management knows this and also knows Bisha won't last forever. I'm not saying the acquisition of RMC is an existential event for NSU (at least in the near term), but longer term it can be thought of in that manner. NSU has cash, seems to have pretty good management and can easily hire the right talent to work on the underground mining/block caving operation necessary to develop Timok. My issue as an RMC shareholders boils down to simple economic fairness - we are getting 33% of the "new" NSU in return for use of their cash. That's a pretty steep equity price to pay for cash and I do not believe it fairly reflects the value that RMC will bring to the new company. Something closer to a 50:50 split I can live with and vote for, but on the current deal structure, my vote is no.
I know I am about to get the standard hue and cry of (a) this was the best deal RMC could get, (b) FCX struck an even worse deal with LUN, and (c) Jing Bao and XGC's proposal is vague, non-binding and both companies are quite opaque. My response is simple. As to (a), RMC should go look for a better deal (RIO, perhaps) and any director that received fewer than 50% of the votes at the AGM should immediately tender their resignation or significanty up their shareholdings. Get some "skin in the game". As to (b), FCX was damn near bankruptcy and was in no position to be greedy. They needed cash and were hellbent on getting it any way they could. With respect to (c), I agree. The only way to do a deal with these companies is at a very healthy premium in a cash only deal for Timok only. Spin the other projects out as there may be some significant value there.