RE:RE:RE:RE:RE:RE:RE:Eastern Athabasca Projects (Radio, Thorburn, 2Z etc)It's a good suggestion HighROI.
What I am thinking is far more complicated and probably just a giant waste of time to contemplate.
If I get to be Leigh for a day...
(1) NXE and CCO form a JV whereby CCO participates by purchasing shares at a 50% premium ($30mm @ $1/sh?) and contributes their 39.5% equity in the Hook Lake project, in turn receiving 39.5% equity in the newly formed Rook I/Hook JV. NXE remains operator.
(2) CCO must contribute $20mm a year for the next 3 years to the JV. NXE is fully funded to BFS.
(3) NXE takes out PTU, they now own 60.5% of Hook Lake (CCO 39.5% + PTU 21%) in addition to PTU's Eastern Athabasca Portfolio. NXE owns 60.5% of both Rook I and 60.5% of Hook Lake.
(4) NXE spins out the Eastern Athabasca portfolio in a Newco to shareholders. Newco is fully funded to earn into Radio ($10mm) by 2017.
HighROI wrote: Not that I don't disagree with the speculation. I just don't think PTU's 21% is meaningful if NXE thinks there is potential to the NW. I am sure that Areva and CCOs stake is of more interest making the implications even more interesting. Maybe a horse trade? Eastern basin assets for Western basin assets?