RE:RE:RE:RE:RE:Don't fool yourself into believing downside is limitedrob926 wrote: The game changer could be another high grade discovery. In order to add 10 more holes they have to have something pretty compelling at this point to increase their spending.
Rob let's hope so. Management's conviction to this project has made Nevsun over spend by roughly $130.79 Mil US dollars (in comparison to Lundin's bid). I think they need to come clean on what they know because their direction (and crazy spending) makes no sense.
Lundin's Offer:
| 75% of the Upper Zone (Reservoir 25%), and |
| 21% of the Lower Zone (Freeport 54%, Reservoir 25%) |
Total consideration of up to US$262.5 million is payable as follows:
- US$135 million payable to Freeport upon closing of the transaction
- Up to a maximum of US$20 million to be spent by Lundin in connection with agreed exploration and study work on the Lower Zone
- US$45 million payable to Freeport upon the earliest to occur of (i) a build decision on the Upper Zone, and (ii) access to any ore body for direct ship ore
- US$50 million upon the achievement of commercial production
- Up to US$12.5 million in recoupment of project expenditures
This puts a value of : $445.24Mil US to Timok, and NSU costs are approaching $576Mil US before breaking ground on the twin decline.
| Total | Lower | Upper |
| $ 445.24 | $ 95.24 | $ 350.00 |