RE:RE:My hypothesis on Dev's Trip to ChinaHong Kong for a strategic investor
PamplonaTrader wrote:
PreludeSH wrote: If the NO vote wins, Lukas Lundin will definitely come back with another offer, but to sweeten it for shareholders he needs cash. I think Lundin sent Dev to find a Cihnese partner who will provide a cash component to this sweetened offer.
Dev has stated, on several occassions, that the primary reason for pursuing the deal is to lower the cost of capital by creating a company with the critical mass to attract capital from both institutional and sovereign entities. If I recall, he stopped short of stating that the Asians/Chinese wanted this merger.
Look back again on my posts from January and February. CGN is the most liquid entity in the Uranium space. Dev has made numerous trips to China prior to the Denison merger and I speculated back in January that the most appropriate vehicle for Chinese investment was DML. DML had the appropriate investment horizon and didn't come with political red tape. DML just needed the right flag ship asset and it's become apparent that this would be Triple R.
Assume for a moment that the merger goes through? Then what would compell Dev to go to China?
In my opinion, it is to re-affirm a gentlemans agreement by the Chinese to buy an equity stake in the new company. He may have negotiated a premium prior to the DML merger.
The above is based mostly on conjecture.