deductive reasoning and the DML deal...Many here complain that Dev is on record stating he intended to build and sell, thereby giving shareholders an exit. These same shareholders therefore now believe that Dev has mislead them with the change in direction and merger proposal. So why would Dev want to do this deal? It stands to reason that Dev couldn't or can't find a buyer. No buyers are currently available for a number of reasons:
1. brown field expansions to meet future growing demand are possilble at Cigar Lake, McArthur River and foreign ISL mines;
2. current uranium prices are low and there is no certainty prices will improve any time soon.
3. a nearby discovery, NXE's Arrow, has surpassed PLS with higher grades, pounds in the ground and lower capex.
4. Considering the time and additional capex associated with a dam and slurry wall, It seems likely that PLS could sit as an undeveloped resource for a very very long time.
Given the burn rate on the treasury, right or wrong, it seems to me that Dev wants to shelter PLS via the merger until uranium and equity markets improve. The dilution that would accompany an equity financing, assuming it could even be done now, will also be high. I do agree the retention bonus's attached to the deal stink to high heaven and rightly upset many if not all shareholders.