RE: RE: RE: RE: Recap "Seems pretty clear to me that Vetas was "Not For Sale" at this time unless Batista goes the route of a hostile takeover. That hefty cash position that RH negotiated to drill out Vetas speaks volumes"
dmuy this is correct and dead on the money.
"Batista likely going to have bite to bullet and up the offer to get Vetas now - I am sure Batista is manipulating GWY current price"
fisherman8 i don't think this theory is correct. I think what we see is a very good relationship between GWY and AUX where AUX has decided to buy the property they need now, but wanted to ensure that they acquired a piece of Vetas for two reasons: 1) to ensure that they are in the lead position to acquire Vetas down the road, should they so choose, and 2) to keep anyone else from assuming that same position. I think it is likely that you will find AUX is limited in their ability to acquire further Galway shares.
I believe the trading is firmly in the hands of the arbitrageurs at this point. At this point their math is telling them that a safe bet is that the spinouts will collectively trade at a valuation somewhere slightly above $0.25. I personally think this is low, and if the Vetas spinout, on its own, is trading anywhere near $0.25 ($38 million market cap) after it is spunout you should see it rise in value rapidly once it is listed.
The conspiracy theories about Batista and Ross Beatty are just plain wrong. RH negotiated a great deal, Bastista received what he wants right now, and put himself in a position to get what he might (likely) want next year. RH with respect to Vetas, got the spinout company financed, partnered with a solid, deep pocketed and powerful shareholder, and most importantly gave the company time to drill and hopefully prove up 1-1.5 million plus ounces by this time next year.
By the way, on an apples to apples comparison, RH just sold 1-1.5 million ounces to batista for approximately $300 million. What's our 90% of Vetas worth if he can do the same next year?