RE:RE:SWA and Acacia not playing around ,drilling underway alreadyI suppose that is one mans view of the deal. I see it as a positive for SWA . The deal requires Acacia to spend 7 mil over next two years on property for a 50% interest after making the 1 mil payment in cash which is now done. IF Acacia decides not to proceed after the two year exploration the property reverts back to SWA 100% . If that happens SWA has gotten 7 mil worth of free drilling and a much better understanding of their property. If Acacia moves forward into second phase of JV they must spend another 7 mil over years 3 and 4 to earn the 70% interest.
What is important here is that for the next four years SWA does not have to dilute the shareholders equity at all while a major exploration program is continuing. This frees up SWA to do what it just did and that is grab another piece of ground at Hounde by JVing with SCA on their property. They can now use the cash on hand to fund that JV exploration on what is also a very promising property. They also will have funds available to get some exploration done on their Liberian properties which hold much promise. I think we may see SWA and SCA merge and that south Hounde property being tucked into SWAs portfolio.
As tough as it is for little juniors to raise capital if you look at the 15 mil dollars Acacia is going to spend SWA would have had to sell a PP of 300 million shares at .05 cents a share to get that exploration done. I prefer this approach...