RE:Congo's miners face harsh new reality as mining law finaliseThis must be the reason the Company locked in equity financing now. Negotiations were not going as well as we were led to believe. RF has lost control of the Company. With 30% of shares locked down, the Chinese are in effective control. Shotgun marriage. If there was any chance for a better deal, the Company could have held out with a smaller placement. At least $723 million will maintain a strong balance sheet for years to come.
The DRC government is not in as strong a position as they believe. Investment will now dry up, and it's never coming back. It was exactly the wrong strategy to follow with inflation running 50% and foreign exchange near zero. They really are a bunch of greedy fools. When the dust finally settles, China will be running the show. With US$885 billion in assets, CITIC can afford to wait years if necessary. They'll still be here when this government is relegated to the dustbin of history, as they so richly deserve.