GREY:ADEXF - Post by User
Comment by
Greenandgold.on Feb 01, 2012 10:33am
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Post# 19473465
RE: Ownership of Roche Bay
RE: Ownership of Roche Bay AEI obviously wanted to sign the JV deal with XinXing in early 2011, way before the definitive feasibility study was to be produced. Perhaps XinXing wanted the same thing.
Therefore they made several attempts to negotiate a buy-out with Roche Bay plc last year. This is the big hold up. AEI didn't have access to $22 million in cash for the buyout, and XinXing didn't front them the money.
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Roche Bay plc is sitting pretty. They either get $35 million in cash for their majority stake in Roche Bay, or they earn royalties (and $1 million advance payments starting next year) on a project with a feasibility study and a positive production decision. They don't contribute a dime towards capex.