RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:With $50m in the BankCompanies that do share buybacks are ones that have cash far in excess of what they need. WRN is not such a company. Spending $60MM that they just raised, to buy back shares, would be reckless and stupid. For exploration companies cash is precious.
In WRN's case, no deal has been finalized, and while shareholders are optimistic due to the Rio strategic investment, there is no assurance that an acceptable deal will be finalized. WRN will continue to work towards a deal but also make sure that the company remains viable if no deal is reached.
Some folks on this board have that they don't know why this deal is being done, but in the next breath are saying it must be malfeasance and talking about class action lawsuits.
So here's a question, how likely is it that, shortly after finding a stratigic partner and creating a path that will soon potentially richly reward shareholders and management, WRN decides to do a deal with the intention of scewing over its shareholders?
I don't know why the deal was done, but here's something to consider:
1) The CEO recently stated in an interview that there was a lack of awareness of the company in Toronto (the most important capital market for mining in the world), and
2) The underwriters are RBC and Cormark - both of whom serve Canadian customers.