RE:RE:RE:Change Great question!
An intermediary between a pure explorer like Laurion and a producing gold company is very much standard. The big players want properties that are significantly explored to reduce risk as they bring them into inventory. The capital requires to get to that point is massive.
There's a middle slice in between those 2 extremes and the companies that live there try to pay a premium to acquire companies like LME, spend time/money/expertise on it and then sell it up the chain for an additional premium.
That's an oversimplification to be sure but for the most part that's how this is likely to progress. In that model LME shareholders get a premium, intermediary shareholders get a premium, producers get a profitable asset.
Make sense?
JoJoHairBlo wrote: Hey Steve,
I don't envy your job today, that's for sure!!
I have a question for you though. In your original post today, you had mentioned that another company might do the extra drilling required and complete the MRE, essentially extracting more value out of the property before selling it to someone that would build a mine.
If that is to be the case, how does that jive with "maximizing shareholder value" for the shareholders of LME? To me, maximizing value implies that LME gets top-dollar for the Ishkoday, leaving no room for a "middle-man".