RE:RE:Offer termsIt appears that existing Klondex shareholders will receive 87 % of $45M US. That works out to 20-21 cents per KLDX share held.
As I see it, Hecla is paying US$7m cash for 13.46% of TN/Bison. This puts a value of US$52m (US$7m/13.46%) on the company. Therefore, would KDX shareholders investment be US$45m rather than 87% of US$45m?
However, my main interest would be what the debt free / $7m cash held company's plan would be. It could be that the $7m may be earmarked to sustain the company until the price of gold blossoms to over $1400 / $1500, by which time the enterprise would be cash positive.
However, I recall that the plan was that the revenue from processing of historic tailings would support the C&M costs. If this were to be the situation, then the $7m could be allocated as working capital for wages and materials in the event of a low level of procution being started.