GREY:DULMF - Post by User
Comment by
shootforthemoonon Dec 20, 2010 9:53pm
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Post# 17873925
RE: Value not recognised by market
RE: Value not recognised by marketYou are so spot on.
I love the way this thing is shaking out as I hold a decent amount of both stock. Obv DM is the jewel of the two but this buy out puts money in my pocket now as well as putting money in my pocket later.
This is going into the JV company with Antofagasta and when it comes time for Anto to ante up 25% of the NAV of the project to bring there percentage to 65% I guarantee DM will get far more from Anto on the Franconia land package at 25% NAV than they paid today. DM will then basically get a free ride to a free 35% of the profits of the Franconia earnings.
The Franconia land has a huge profitability that was not recognized by the market due to the high Capex, which DM will not have as its a continuation from Nokomis and because of unfortunate market conditions.
NAV of Franconias properties are far greter than 350 million which is required for DM to get there nice free 35% for zero cost.
Win Win and I will be celebrating Christmas in style this year.