RE:RE:RE:RE:RE:Question for AllI wouldn't be surprised if everything and anything is on the table.
JV or takeout from different parties might be on the same table at the same time.
JV would leave the shareholder with significant leverage to the whole chidliak diamond district. All the untapped value.
Takeover would eliminate that leverage and chances are investing in the acquirer..the leverage would be elsewhere and Chidliak would just be a small portion of the companies projects.
PGD ain't going to do a JV unless the JV ponies up to the pay the next $50 million + of bills at Chidliak and that is why PGD's shareprice goes up. The project is de-risked signficantly even more..but at a cost of a 50% dilution to equity investors. I think the best JV is one where the partner ponies up for the capital costs and PGD pays back the money with future cash flow from the mine operations. Then PGD just has to help make sure the project is executed well.
Take out? Immediate bump in personal net worth. Says it all.
Then you ask about a white knight?
The new take over rules are less than 1 month old --
Takeover changes. 105 day bid period....some time for a white knight to appear.
Personally, I think a white knight is pretty next to nil for Chidliak. A friendly takeover bid would include a commitment from both Friedland's to tender to the deal...that being said..the premium would have to be pretty big to get this commitment.
LONG...PGD
EKIM