RE:Buy HCU at 25% discount to ETG
The company has never been anything more than cryptic about what arbitration relief would precipitate any change in their tax status, Mongolian ownership issues, or any change of ownership. We don't know what they asked for. They said "to better align the interests of the parties" but that is double talk nonsense that in itself means nothing.
The big hammer would be to ask for recission of the Earn-in on the grounds that key elements of the consideration for transferring 80% of their interests in their mineral licences, namely best efforts to procure tax stability, and good faith exploration of the JV property, were both defaulted on by OTLLC. So rescind the agreement, ETG will repay all expenses from Day 1 plus financing charges, and be in a position to auction HNE. Ha. Fat chance. But it is a nuclear option.
No public disclosure has every been made about what specifically was sought at the Arbitration. But it would certainly lie in the powers of the parties if it was a potentially serious blow to Rio Tinto and OTLLCks interest to jointly ask the panel not to render any decsion pending the conclusion of further discussions and negotiations for settlement. Arbitration is a contractual agreement - the parties can agree to any amendment of their original agreement they want. Maybe some urgency can accomplish what sixteen years of useless talk could not?
cg