RE: Randgold invests in explorer in Senegal.... This to me raises potentially troubling question(s)...
Why would Randgold go into a joint venture for drilling an unknown when Oromin already has an established deposit? Especially given that OLE's deposit is closer to Randgold's Loulo-Gounkoto mine in Mali.
How difficult is it to deal with OLE? Have they been so hard to deal with in the past, that majors are just ignoring them now?
The exploration cost for this new Randgold venture and the subsequent long-term prep costs, if it pans out, cannot be more cost beneficial to Randgold than simply acquiring OLE... even at an upper end buy-out price... not too mention a quicker realization on the investment...
Have bridges been burned? ... troubling...
h1