TSXV:MGR.H - Post by User
Post by
imerc23on Sep 07, 2012 10:08pm
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Post# 20335508
Wim & Hudvam
Wim & Hudvam Just a few more days until Hudbay's option to reacquire Wim and Hudvam runs out.
It's not really a surprise that Hudbay has decided not to back in to get a 65% interest in these properties, when for a very modest amount it could buyout all of Murgor and get a 100% interest, plus Golden Arrow as well. As Fundamental Research wrote last year:
Although HudBay has a buy-back option, our valuation models indicate that HudBay is better off acquiring MGR (and thereby maintaining a 100% interest in the projects), instead of reimbursing MGR twice the cash paid by MGR to HudBay, and solely financing and bringing the Hudvam and Wim projects into commercial production to earn up to 65% interest.
(from https://www.baystreet.ca/articles/research_reports/fundamental_research/Murgor021411Update.pdf)