BenefitsOne quick post before I head over to join the family for Thanksgiving.
I keep wondering why jr. exploration cos. would split themselves up. The more I think about it, I think I see the advantages.
1) Focus projects - like onle said, one co. can focus on the development of its mining project while the new exploreco focuses on the exploration of other less developed, non core assets
2) Financing?-And maybe I'm wrong here, but the spun off co. would then be able to easily access financing for exploration separate from the mining co. In Bard's case, the newly formed co. will have few shares outstanding (someone posted only about 10 million shares) so lots of room for share placement/financing. Does it change anything financially for the mining co.?
Anyway, it presents interesting scenarios/options for those companies that may have a project nearing the production phase as well as a basket of promising exploration properties. Hey, that sounds familiar.
Okay, I'm off!