RE:RE:RE:RE:RE:6 NDA`s Signed1/19/15
PamplonaTrader wrote: Maybe I've wandered off the reservation, but...
I wouldn't count DML out just yet.
Lundin likes scale and grade. See Lundin Gold's acquisition of Fruta Del Norte... I wouldn't be surprised if some Chinese money was behind the acquisition. The Chinese wanted Fruta Del Norte before Lundin Gold made a play on the deposit.
DML sold 19.9% equity to KEPCO in 2009 and KEPCO is a long-term minded shareholder. You can't say the same about shareholders of CCO, who think in terms of quarterly and fiscal time frames.
If I'm CGN, DML may be the best vehicle through which to gain a foothold in the Basin. CCO and AREVA are obviously competent operators but may come with too much political red-tape and interests may not align with other share/stakeholders. It would make sense for CGN to try and get some representation via stealth purchases of FCU and DML in the open market and approaching KEPCO re a deal to merge the two. The pro-forma company would own some of the best undeveloped assets on both the Eastern and Western side of the Basin, as well as infrastructure assets, that could eventually compete with the likes of CCO and AREVA. Lukas Lundin isn't just an asset aggregator... he's successfully developed mines and could take Triple R to production someway off in the future.
Just speculating out loud...