RE: Mega dealImagine that! Lundin Mining has agreed to sell the silver under very similar terms that the original CS deal was agreed upon. I guess the guys at CS weren't so stupid after all?
Nice to see that the company has secured a bank credit facility to pay for much of the silver, therefore the deal will not be as dilutive as some had feared. In effect, the deal is almost self financing since the revenue generated by the silver delivery will service and pay down the debt to make it happen. So for just under 20 million shares, SST will now more control nearly triple the anual silver. That represents a huge increase to the silver leverage with only a modest increase in the share capital and analysts love these deals with are structured to be accretive almost from the get-go.
cheers!
COACH247