The Good & BadBeen following this one for ages, it's part of my watchlist in the base metals sector. Never actually invested in the company, as i didn't really beleive or they could convince me they could go through with any of their plans. No real beef with the company itself, just the harsh realities of the industry on how diffilcult it is to bring an actual mine online. Let alone find an economic, viable one.
The GOOD. The company wasn't able financially to hold onto to all those assets, some in limbo & idle just laying there on the books. The company like every other small cap explorer needs lots of cash to fund operations and develope some projects. And they were running out of sufficient amounts of it. So they had a choice, massively dilute s/h and continue as is OR divest themsleves of one major asset IE "EVA", raising much needed capital and concentrate on what remains. Imo, this probably wasn't an easy decision, but consdering the state of the economy, the price of copper and the difficulty in raising capital by the usual normal routes, this was the best option. So now they have ENOUGH cash to proceed with their Canadian mines and advance them further without additional dilution.....for the immediate future.
The BAD. Well, it's quite obvious. EVA was a valuable major asset in a hot & bustling place like Australia........problably much more than their Candian counterpart. Having to sell it at this time was most likely not pleasant, and probably downright excrutiating to do. Especially at this juncture in this current cycle for copper pricing. Probably at the worst time possible to sell assets, at the real bottom, especially a promissing one like Eva. Nonetheless, what's done is done and the company had a hard decision to make. Either this or massively dilute s/h and keep spending money at a rate they cannot affrod to do. It's really a question of buying time & survival. Though decision IMHO.
Now this solves their immedaite liquidity isssues, reduces overall expenses quite substantially and they can concentrate ALL their resources on one. Time will tell if this was the right call to make. I'm not a s/h here, so i wish you the best of luck to those that are......
GLTA