RE:News out from XGC....
So my call was spot on! "The chinaman" wants RMC on the cheap! They already have approximately 15%, their non binding offer to purchase another 10 million shares would give them approximately 25 to 30%, plus their loan of $50 to 70 million would be secured by Timok and other assets.
This appears to be going down to the wire- its close - its up to "the real shareholders" to decide -
If they vote no, and facilitate the Chinese interests, to increase their stake, in both ownership, management, board of directors, their only hope is for NSU to sweeten the deal - highly unlikely - as cash is king - and there plenty of other oppurtunities since it's a buyers market - as commodity prices are still in a downtrend...and market uncertainty worldwide is high, with Brexit etc...
Since NO MAJOR, has taken a kick in the can, at around these prices, it would be unthinkable to hope that they would come back, once the No Vote, would take place and they would have to offer a much higher price to convince the dissidents to give in..
Who knows it might be worth the long wait, once, the hurdles of financing, additional stock dilutions, NSU stock overhang, and turmoil in management and board is over...
The alternative has much lesser risk, as NSU is an undervalued asset and the prospects of a SP adjustment is quite good if the merger goes through...add to that that Zinc Flotation Plant is being commissioned, and Zinc prices unlike copper prices are heading higher, plus the sale of around 80,000 oz of gold to take place this year...the generous dividend...and they have the money, the know how to bring RMC into production within the next few years...
To be its a no brainer!
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