OSK is buying the Property, not the CompanyI confirmed with someone extremely close to OX that OSK is buying a 60% share in the property and claims and not taking a position in the capital structure of OX. OX may have to fund 40% of anything OSK wants to do to bring the gold to market, but they have cash in the bank now, and more cash in the bank in the future, and do not have to pay for 60% of future exploration. Shareholders get 40% of the profits for doing not much more. OSK is going to move fast, a 20 day due diligence period is pretty short in this industry.
Furthermore OX has tons of outstanding warrants that will now likely all come into the money pouring more money into the coffers.
The local mining community is ecstatic... finally a bigger player is paying attention to the NS gold fields which have been largely ignored by anyone serious (except for Placer Dome's interest in OX) for 100 years.
To the naysayers, we could limp along, from placement to placement, and take another 2 years to proove out the resource, and by then the price of gold could tank. What then? We have the money and value now, and we can move onto something new... the smart money is asking what will OX do with all that cash?