Nevada Copper Corp NEVDQ

You have been hired >>>

[Notgnu]

You are now an aquisitions manager, with access to a team of assistants, for a major global mining company with cash and a market cap of over $40 billion.

You have been tasked with comparing buyout targets to fullfil an expansion strategy with a multidecades long scope and copper assets are high on the list.

Nevada copper is one of your targets. You are looking at everything from political stability, taxation policy, ESG values, infrastructure avilability and cost, permitting risk, grade, etc.

You know that your top two competitors are also doing the same search and dilligence. 

You are fully aware of the history of this mine and of all the recent financing, team building and mine ramp up progress and issues. You also know that you need Pala to accept your offer or else there is no possible way to make a deal and to get ahead of your competitors.

What do you offer? 

What are the deal terms? (roughly anyway)

What are the salient factors that justify this offer when you need to defend it in front of your own BOD and management?

N.

[westcoast1000]

Not, In my view, the tougher question is: What would be a price at which Pala would sell? In simple terms, we cannot answer that in any sensible way right now. In other words, no offer should be considered. The exploration going on as summarized in the latest investor presentation indicates substantial unproven and potential reserves. What is the right price for these assets. No one knows

[my69z]

" How to price that uncertainty in?" with sliding spot price discounts & a floor price for NCU. :)

[Notgnu]

Good point my69z  There are a lot of ways to structure terms with incentives and floors etc 4.3673 +0.0458(+1.06%)  

[Notgnu]

Westcoast. To be clear, I am not personally advocating a sale at this point. This is more of an academic or thought experiment type of question. What would an outsider, comparing buyout targets actually offer vs other shovel ready projects.  Everything has a price for both buyer and seller. I agree that they may not actually come together or make a deal but that does not mean they do

[Notgnu]

I think it would take $12.00 to $15.00 per share (which is a bit of a discount to the discounted NAV) to get Pala interested in selling today. I think a BHP or a ABX or similar would start with $8.00 or $9.00 to $10.00 as a share swap type buyout. N