RE:RE:RE:RE:RE:RE:RE:LUNDIN BUYS OUT NEVSUN , AND SELLS BISHA MINE TO ESM gisellekronk wrote: rob 926 , you say .."Whats wrong with bringing in a minority partner for maybe $5.50 to $6.00 Canadian. That set a new floor on the value of the project " ..... whats wrong is , the time frame , a buyout is neat and clean and in a set time period , may be higher or lower than what you want but its , cash for your stock and you move on . taking on a partner gets an influx of cash for the company in exchange for shares the company sells the partner , they may sell the shares for higher than the market price so the only benefit to existing shareholders is less dillution as they can sell fewer shares . it does not provide a floor for the stock the chinese bought into ivn at 3.68 , and ivn is ni $1.20 lower . . then by bringing in the partner the existing share holder if they do not sell are at the mercy of the drill bit results and everyother thing that can go wrong over the years until a mine is built , and who knows what price the commodity will be 10, 15 years in the future , look at cameco and the price of uranium today compared to expectation of the past . so that the problem with bringing in a partner , compared to a buy out
You are right Giselle, but i guess if you believe that then you can sell your shares at the pop up that (i believe) will follow if they announce a strategic investment at say us$ 4,5. Sell you shares, buy back when they are at $2. Board has to look for maximum shareholder value. I believe selling to a strategic investor will allow retail shareholders to sell at premium if they want, probably more then Lun is offering, while the institutions and others who want to sit this out get to benefit from appreciation in the comming periods. If we sell to Lun now we miss on potential new upper zones, we give away Bisha for pretty much free and we get only a fraction of the LZ value. A strategic investor can provide the resources and the knowledge to get to production and make this stock worth many times Lun offer in a few years. If you are affaid of commidity priceswings and all the things that can go wrong, mining might not be the place to be :)