RE: RE: RE: RE: RE: Why only 20% ownership??Thanks to many well-informed posters on this board, a lot of information regarding the deal can be found in previous SH postings. To be brief, yes KGHM will likely excercise it's option to own 80% leaving AME with 20%. Abacus however is fully financed for the project - no cost of drilling, feasibility, consultation, construction, etc. The project is also fast-tracked having a strong operating in KGHM who also have the financial resources. Abacus also will not need to dilute its stock to raise project funding.
$35M would equate to the company's current market cap. Those buying shares today are getting them for free, assuming AME gets the rebate cash from KGHM, and a free option to see if the mine will make it into production. 22M lbs of Cu and 20k ounces of gold for at least 23 years with no cost risk is a unique opportunity that the general market is not pricing in. With $4 copper and $1800 gold, revenues would be about $124M.
In a nutshell, the deal with New Gold was that AME gets the surface rights on the Ajax property and mine the open pits. NGD gets the underground rights for their New Afton mine.