RE:RE:RE:RE:Bidding War’s BegunTrue, WRN might not need the cash that they have on hand at the present moment. However, was the company going to give RIO shares for free? The cash is a byproduct of the strategic buy-in rather than a choice borne out of need.
Also, juniors tend to prefer a cash rich position that allows them to weather storms. The junior resource sector is very fickle and we all know the droughts we've been in over the last decade. I would've preferred a cash raise at higher prices, but at least they weren't pumping millions of shares into the share structure at 10 cents like some juniors do.
I could get on board with a small ($5 million or so) stock buy back just to signal the value of Casino. But, it is very rare for juniors to buy back stock - practically unheard of.