The “Chinese” ContractThe Chinese don’t have the best reputation. I agree here with many. However, let’s look at the contract. Please!
1) They can’t raise their stake in the coming 12 months over 9,9% (which came without stock options as I assume this point(!). This raises the actual cost of payment for the Chinese and lessens the dilution for shareholders.
2) …and they are limited to 19,9% in the next 4 years…(or up to 33% per financing). This implies a stifling distance for any unwelcome attempt by them.
Overall, this is a smart move. It brings money for the mine and other ventures into the pocket of Sabina. It creates a war fund for any other, non-negotiated outside TO… It ends any dreams of a managed stock price by outsiders (sorry, hedge fund manager;-)) for the purpose of a TO.
@ilovetoinvest: if you argue against; please, make your argument but, please don’t refer to others as spinners. It is not helpful- imo-...but I appreciate any substantive discussion here ;-) and I fully agree with your third-party argument!
In short; the Chines are contract-locked! This shows the strength of Sabina’s position (currently) as I previously wrote about it (that there is a pressure from investors to get in). The Chinese contract may also indicate that they, may not become a 50/50 holder of a Back-River project…even if I assume they got the contract due to their expertise in production as well. -imo!-
This indicates to me that the implementation phase 1 of the financing has been closed successfully.