RE:RE:Question regarding "third party acquisition" ?Yes, a third party could be AEM, or G (or as some people have suggested, it could be Osisko, since this company is lurking around the neighbourhood as well, but I would not put my money on this potential 3rd party). Let's assume it's AEM who wanted in with 19.99% (there is a reason to keep it below 20%, but will use 20% for easy math)
The math:
- 20% of 500Ms = 100Ms @ say 1.00/s = $100M (quite a chunk of cash for ICG, would be enough to start a mine at Triangle)
- The original agreement would allow ELD to buy enough share to maintain it's 15% (of 600Ms, i.e to have a total of 90M shares (ignoring some detailed math to account for the effect of the extra shares 90-62M =28Ms, i.e. ELD can buy something like 28+Ms to maintain 15%. Currently, they have ~62Ms or ~13%, but they can always approach ICG for more, i.e. 19.99%, or even an offer for the entire company, but that what trigger quite a few things, including a bidding war.
If I were ELD, I would up the anti to 19.99% to raise the temperature a bit, may be it won't be an eventual winner, but it may walk away as a loser, but with lots of cash in the pocket. Nothing wrong in playing king-maker.
GH