Western Copper and Gold Corp T.WRN

Rio buys in!

[jclarke042]

https://ceo.ca/@newswire/western-copper-and-gold-announces-c256-million-strategic

[EvenSteven27]

Oooh La La Western Copper and Gold Announces C$25.6 Million Strategic Investment by Rio Tinto NEWS PROVIDED BY Western Copper and Gold Corporation  May 17, 2021, 08:07 ET   VANCOUVER, BC, May 17, 2021 /CNW/ - Western Copper and Gold Corporation

[EvenSteven27]

Great find, JC! This is major!

[metalhead666]

Yeah baby! This is a big freekin deal!  Whoo Hooo! 

[jclarke042]

Never saw them coming. We'll see soon whether my "WRN already has the PEA and is reviewing it with the partner/investor/buyer" theory proves accurate. Looking forward to the conference call later today, should be a good one. Rio's market cap is 140B. 

[metalhead666]

I think you're right about the PEA...I'm sure Rio saw it before pulling the trigger.  Couldn't ask for a bigger or better partner...RIO can get this done! 

[jclarke042]

It'll be an interesting day in NEM's boardroom, that's for damn sure.

[cb2task]

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[Marine2]

This is all great news. Western Copper and Gold Announces C$25.6 Million Strategic Investment by Rio Tinto @ C$2.17 per share  Moves WRN up the food cgain but when does this end in a buyout ? 1 YR ? M2

[gratvalyou]

It tells me that Rio believes there is value in WRN.......nothing more ,nothing less. With copper prices approaching 5$ it could merely be a sound investment. I see more dillution.Dales original 6 mill share investment now starting to look like 4.5 I could be wrong if we see +3$ over the next couple of days. Grat

[Poweraaa]

Nice to wake up to this news! I believe when FS comes in so does the Money!!!

[metalhead666]

No one ever has built a mine without "dilution"...It would happen whether we did it alone (not possible) or with a partner. The best part of todays news is we have THE partner!  RIO can borrow cheap, inject cash, buy a bigger interest or buy us out entirely for cash.  There's way too much talk on these boards about dilution...if you want to tap those billions of pounds of

[gratvalyou]

25 Million is hardly a partner on a company with a 5 bil NPV 10x maybe

[metalhead666]

It has to start somewhere.  Rio is interested. 26 Million $ interested. More to come.

[Sooner]

Grat - i somewhat disagree - to me this implies WRN is ready and willing to hitch their wagon on to Rio! Most likely they got tired of NEM dithering around and is making this play to either get them on the bus or not. Just my opinion. Alternatively, perhaps it's the 1st step in a Rio/NEM /WRN 3 way partnership? Not sure if that's an option 

[cb2task]

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[Sooner]

In this immediate equity investment, might be a stupid question, but we already have enoug in the bank to get thru permitting (from what we've been told). So now we are raising another $25M....but why doesn't WRN just take that cash proceeds and start buying back shares to squeeze those short sellers, etc? A bit confused why they need $50M cash sitting in bank - rather than $25M from most

[cb2task]

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[jclarke042]

This is likely the biggest news in the company's history to date. None of us was talking about Rio, but here they are. 140b market cap, they generated 9.6B in free cash flow last year. This does not sound like a company shying away from CAPEX for the right opportunity. OK, so it wasn't the 50% or total sale we were sort of expecting. Still this is the first time WRN has ever brought

[metalhead666]

With the $$$ they can advance engineering, plant design etc.  It doesn't go very far for a project this size. The "shorts" are meaningless

[Heywood_Silvers]

Rio was one of the "in the shadows" potential suitors.  They have now announced that they will be taking a seat at the table in the eventual bidding war for Casino.  Who will be next? Strategic investments are just that.  But when a owner starts creeping much over 10%, it can oftem times indicate a precursor to a buyout.  Don't be surprised if a few others start

[cb2task]

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[cb2task]

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[cb2task]

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[cb2task]

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[cb2task]

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[blueboron99]

JC, If you snooze you lose! NEM had their opportunity to partner, but for whatever reason chose not do pursue it. I seem to recall WRN had discussions with BHP and RT about Casino in the last few years, and it was either Chris or Paul that brought it to my attention. (bb-99)