Question on deal with RodriguezSo they bought 4.5% of the project for 1.5 millions USD. Very good deal. But why did they do this right now instead of buying the full 9% and the .5% smelter royalties for 16 millions ?
After all, buying 9% for 16 millions USD values the project at 177 millions USD or say 220 millions Canadians which would be lower than the current OCO market cap which values the project at 670 to 700 millions CDN based on the current share price and 81% ownership.
Another way to look at it, buying the extra 4.5% would have cost them an additional 14.5 millions implying a value of 322 millions usd or roughly 400 millions Canadian. Buying it would have been accretive.
So was this option about to expire ? After all, Oroco has the cash to drill but not to buy out Rodrigues. Otherwise, why the rush ?
Last point, wonder if Rodrigues kept his smelter royalty.
GLTA