RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:The SP tells it is a bad deal!
Like sask, I'm a huge fan of RRR, and still a little leery of management, but this deal keeps the leeches off our backside for the next few years. Gotta give credit when it's due, our management are keeping the ability to explore new conductors and merge the RRR alive. This deal would get 2/3 of the vote for many reasons, while the DML died deservedly.
If Ross finds a parallel system, or otherwise doubles the size of the PLS resource, we can afford to sell 20-35% of output at a reduced rate - assuming FCU hasn't been bought outright.
And the rest of PLS can be spun out, as has been done before, with cash on hand to continue exploring.
As others have stated, our management will have new Board members who will accomplish what Oversight would have done: watch the purse so that funds are directed appropriately to the drill, new RE, PFS etc. These Chinese part-owners aren't going to tolerate the sort of cash burn and admin costs we've seen.
And finally, if other big players don't want to see China in their backyard, this is a good wake-up call. An offer down the road will have to pass a vote of 51/80%, as the new partners won't want to let this go cheaply. All told, there is much more plus than minus in this plan on first pass.
Caveat: Thorough examination by sharper eyes than mine may find the Dev is in the details.
Merry Christmas/Happy Holidays all. I hope 2016 brings the longs success.