RE:RE:What if Rio says $3 US take it or leave it?Vision - this is exactly right!!!!! It doesn't matter if they CAN afford to pay $1.2B NOW....there is no way that high of a premium would pass thru the RIO board let alone shareholders if we are trading at $400M. I mean that makes no sense.
Most likely is they are working with WRN in an effort to more clearly define what WRN valuation should be and that will drive up market cap and only then make an offer that is "fair" to both sides.
Think of it this way:
PEA released - drives us up another $0.5
Add'l RIO drill announcement - another $0.5
Add'l RIO investment - another $0.5-$1
that gets us up to $4.5 plus a 40% premium = $6. Could be the path.
We have heard that RIO is great to work with from Paul and they are excited - don't think they will try to low ball....but also think they are constrained from offering something way above our market cap!!!!