RE:RE:RE:Nice articleAgain, it begs the question: why do we keep assuming NEM even wants that deal? Remember, we wanted Rio to take the whole thing (if not most). Rio balked, so we came up with this arrangement, which most of us thought would be over by now!
8% is not alot, considering the nature of our share structure. 8% with terms similar to Rio (including the associated timelines) is:
- Not enough to meaningfully drive any development milestones (WRN as a security (to use Diamond's characterization) will still languish during long intermissions of silence between permitting milestones).
- Not enough to drive market cap (We all know several juniors with 1 or several majors with little pieces, terrible market caps, most)
- Not enough to give the market FOMO that someone is imminently committing. Rio has been under this strategic rights agreement, and the preceding NDA, for over three years now with one to go!
To paraphrase the old saying: 8% is like a rocking chair, it's nice, but it won't get WRN anywhere.
Next you'll be saying "Let's give TECK 8% and 3 years to decide!!