RE:RE:RE:Buy HCU at 25% discount to ETG With regard to the arbitration there is nothing in the Earn In or pro-forma JV Agreement that would compel one party to buy the other out. And if you go through the company disclosure and NR's they don't say what relief they believe they are entitled to. But it makes sense if ETG can't be granted IA status and there is controversy about Mongolia taking 34% that ETG is acquired by OTLLC at a negotiated value - and Rio Tinyo would have to pick up the cost. Mongolia won't pay.
On HCU I own some, but as noted HCU owes SSL something like $181 million. So you can do a calculation - HCU's ETG shares are now worth close to $100 million (about 50 million ETG @ $2 let's say just to keep the numbers simple). That leads to the assumption the market is valuing HCU's other assets (Hod Maden and Antimina royalty) at $81 million (the remaining debt assuming all current ETG value was applied to repayment of the debt) plus the current implied market cap of HCU. So say ETG shares were valued at $3 ... or around $150 million to HCU, they no longer own any ETG, they still owe SSL another $31 million, BUT they hold Hod Maden and the Antimina royalty. How will the market value those? That is the upside for HCU, and it's quite possible the market will discount Hod Maden hard until the SSR accident debacle in Turkey is not a threat to continuation of Hod Maden (collapsed cyanide heap leach at a different mine).
But sure, HCU could have great leverage to an ETG premium.
cg
cg