RE: 20% or 40% You've got to admit, it does make sense. By purchasing the 2nd 20% of LFD's 40% interest, Genel would be responsible for $25 million in back payments, and must assume a 40% royalty rate. In that sense, the 2nd 20% of LFD's is not worth anywhere near what the first 20% is worth.
Genel would be much better off , value wise, to purchase only a 20% interest... and leave LFD with a 20% interest. LFD could then pay off the $25 million and carry on, debt free. Of course, they would still have to raise funds to participate and still be left with that darned 40% royalty rate. At least they could carry on for awhile, which is better than the current situation. When things look too good to be true, they usually aren't true. I seriously doubt that the deal will support the current price.