RE: RE: RE: RE: Exploration vs. MiningRoyallyScrewed
I think you are wrong about the ownership issue. GSK does own 25% in JCM, not 2%.
As Jilin Jien (the mother company) is a publicly listed company at Shanghai Stock exchange, I checked their initial publication about the buyout deal for CRI in 2009. It is in Chinese and I translate
"Common Share with Voting right: JJ 75% GBK 25%
Preferred Share: JJ 100%
Common Share B: GBK 100%
If any profit in case is generated, 80% goes to JJ first to reimburse JJ's initial investment, rest (20%) will be distributed according to common share with Voting right of each party. (=95% for JJ until JJ gets all its money back) After all JJ investment reimbursed, cash dividend will split 75% to JJ, 25% to GBK.
JJ will have 3 directors and GBK 2 directors in Board.
JJ has the priority to buy JCM's nickel products at fair market price."
They did not even mention the number of preferred share or B shares, just says 100% for each. I think it's becoz it dose not matter. and in the publicly filed document is specifically stated how the dividend will be distributed.
I assume Nunavik will start production in Q2 2012, and it will take at 2 years for JJ to take its money back (assuming nickel price at current level). So GBK will get its 25% from 2014Q2. In the end, it will be 75/25 for everything, Nunavik and Raglan together. Hopefully everything goes well and they simply merger the two. Combined reserve will easily support production for 30 years, and that's why they need their newly proposed 4500 tpd mill capacity. JJ wants to get its money back asap.
So do we.
Btw, anyone know when this arbitration will be finalized?