RE:RE:RE:RE:RE:RE:RE:Oh Yeah... Goldstorm Shares!!!!
Whenever management has assets that begin to diverge in some material way - one property advancing towards development and a basket of much more prospective properties ... it is always a consideration to reorganize. The target investors/buyers are different and looking at different risk profiles, one set of assets or the other are not adding value or are valued differently by the market.
The way I see it, ALL of TUD is mispriced by the market today, but stripping out TC to be a clean exploration/development play with a singular focus, and putting the remaining properties in a different vehicle makes perfect sense, at this stage do I want to see dilution of my TC exposure by capital raises for greenfields exploration in other properties? No. And I doubt many others do either.
This is especially the case if management has been entertaining preliminary sale or fundamental ownership changes of TC thoughts or inquiries, and if they have another property they wish to start much more accelerated spending which would be an earlier stage proposition.
Good for TUD management, this is a sensible move. I don't care what the immediate trading prices of either newco are, in time the respective valuations will move according to the market, and generally there is value-added when secondary assets can be highlighted away from a primary project like TC. If you are a trader/flipper active buyer and seller different considerations apply, for this buy and hold speculator, good move, it will pay off long term IMHO.
Good luck to all. Copper and gold on the rise this week, ya gotta luv that at TC!
cg