Rumour Mill heating upSo Rio's Chair was in UB last week, and some Rio minions in an interview suggested some kind of "agreement" with regard to OT and ETG was imminent.
Not much to go on, but this long term shareholder for one has believed two things were likely to break the impasse since 2009 regarding ETG's IA status and a definitive JV Agreement:
1. First that Rio tied-up the TRQ minority (mostly done!),
2. Second they avoided all IA negotiations and bickering with Mongolia over gaining a 34% interest in ETG by simply having OTLLC buy ETG for straight cash. Then the shareholding between Rio and Mongolia would take care of the ownership split 34%/64%, no IA or ARSHA amendments would be required, the only issue would be the terms of financing OTLLC by Rio. And the fact that ETG was not left out of the settlement negotiations last year between Rio and Mongolia was telegraphed by the Mongolians noting OTLLC would not assume any debt obligations having the effect of reducing their free cash dividends from OTLLC. So maybe Rio gives some kind of long term loan at low or no interest?
We'll see if there is anything to this pretty soon. One thing is for certain. There would be a significant premium to current market price coming if a cash buyout acceptable to HCU and ETG management was on the table. Just where ... that's a stressful question!
cg
fmcdh!!! Except for the right price or if I'm jammed into it like it if not,