Proposed Letter for Paul I suggest all of us send the following letter to Paul at:
pwest-sells@westerncopperandgold.com
Dear
Dr. Paul West-Sells,
We, a consortium of private investors in WRN, are reaching out to you to make our voices heard. I am one such investor and my name is xxxxxxxx. We currently have 14.5 Million oz of Au and 7.6 billion pounds of Cu M&I and money in the bank. One concern that many of us investors have is that you mentioned RIO not willing to buy out the project for $3 billion or $2 billion, but $1 billion definitely. Us shareholders believe $1 billion is much too low and would be doing neither us nor the company any service. We are requesting you to rethink your negotiation strategy and tactics with Rio Tinto. Quite frankly any figure less than 2 billion is unacceptable.
Think of your investment of work and time in this project, Paul. Countless hours moving this project forward with the indigenous community, advancing through various stages of development and regulations, on boarding reputable institutional investors, spending two years on a robust BATT study. You should not sell your efforts short, Paul; by doing so, you’d be selling us short, too. Our hopes is that a figure between 2.6 billion and 3 billion can be negotiated. We are willing to wait and have patience as many of us have been in this project since inception and have stood by through thick and thin. The truth is that even at 3 billion Rio Tinto will be making huge profits, though we do acknowledge that it may be unlikely that they will accept this figure. Therefore, not a penny under 2 billion is what we are suggesting, and would like to go higher.
Let’s consider other projects. Great Bear Resources went to Kinross for $1.8 billion on a five company bidding war without even having a solid resource estimate. The shares wound up at $29. Why should we even be contemplating a figure lower than Great Bear? It would make no sense. Next, let’s look at Turquoise Hill who had one major investor blackout on an acquisition offer. Pentwater Capital Management outright rejected Rio Tinto’s 2.7 billion offer on Turquoise as absurd. We agree with Pentwater’s stance, and we should be grateful to Pentwater for standing their ground as they are setting a just and reasonable precedent. As concerned shareholders, we urge you to listen to our collective voice, as well as individual voices, and grant you permission to share our letters with Rio Tinto at your next negotiations.
Most Sincerely,
Investor’s Name