RE: RE: RE: RE: McEwen considers selling the Los A BCB
Regarding news, the first thing that comes to mind is the possible benefits received by TNR.
1) - TNR should receive a minimum of 15% of selling price - Less mutually agreed percentage of development cost up to time of sale.*
2) - TNR will not have to sell assets, or borrow money to pay for development costs.
3) - TNR can continue to develop other projects with their share of money received for Los Azules.
4) - Selling Los Azules prior to the project producing resources means substantially less money for TNR, but due to years(?) needed to bring project to production, who knows what could happen between now and then.
*Below find example of Los Azules sale and affect on TNR:
If Los Azules sold for $550,000,000, TNR would receive $82,500,000, (15%)
As a rough guesstimate, let's say TNR owes MUX $2,500,000 for its 15% of costs for development, leaving $80,000,000.
With a share count, (including options) of 160,000,000+/-, $80,000,000 would represent a value of $.50 for each share.... The question is, how long would news of this financial windfall take to have the TNR share price reflect the Los Azules sale? - And all of this could happen in a couple of months.
Let's also keep in mind; MUX is currently attempting to move Inferred resources to Measured & Indicated, thus increasing value of same. Furthermore, Mux is also attempting to increase the quantity of resources, by verifying and measuring an identified resource at the 700 meter level.
Retail shareholders, (us) should feel pretty good about the near-future possibilities of and for TNR share price.