Oromin Explorations Ltd OLEPF

Mill financing

[jredoc]

Am I correct in understanding that

a) a mill has to be under construction in 1012 for the joint venture group to maintain the concession with Senagal and,

b) if a mill is undertaken the Saudi partners guaranteed financing?

If my assumptions are correct then the question of a sale and at what price is not entirely related to dilutional pressures on the sellers.  Potential buyers have the pressures that commencement of mill construction or actually taking a mill to production would exponentially increase any potential sale price.  This coupled with the time/value of money and the limited supply of new deposits of minable size should make any negotiation interesting.

[Goldfather]

thought we'd hear  something mid to late October. just bought some more

[tony1969]

Jredoc, I believe you are correct about a mil having to be started in 2012.  The Saudi financing part I am not sure about.  Like you said any potential buyer will have this added pressure to deal with.  There are many factors that an acquiring company has to deal with. This is probably why any negotiations will take a long time to reach a deal.Thanks,Tony