Western Copper and Gold Corp T.WRN

What if Rio says $3 US take it or leave it?

[metalhead666]

What would we do?  Not much. I admit to as much enthusiasm as everyone else but is it not possible that Rio low balls an offer and says take it or leave it?  We'd be sitting there in the middle of nowhere with a bunch of holes in the ground. Maybe Newmont says $3.25 take it or leave it or maybe they don't do anything and just let us stew with all our holes in the ground?

My point is....It isn't like there's 100 possible buyers for some mega grade right next door project with lots of infrastructure in place ....no one has to buy us for what we think is "fair" do they?

Without a buyer WRN is worth exactly nothing and the one making the offer really holds all the cards.

Just putting this out there.  I'm not going all in on this....Sold some actually at $2.60 

Jobs numbers coming tomorrow and Friday and if they're hot there could be a market taper tantrum which would hit all stocks

Have to mind risk as well as reward....that's how I roll...bumped up my market hedges too

[Visi0n]

Don't think Rio or any other serious buyer would care to short change us. What they pay for the asset would be a fraction of what they will pay for the mine construction. $0.5B or $1B makes little difference for a US$150B mcap company with $10+B cash on hand. What's more important for them is whether the project fits well into their future production plans and the likelihood of receiving

[metalhead666]

Exactly...so why is the stock stalled out here?  Everyone has had a chance to think this through. I think we all got a little too charged up with the initial Rio news.  Market looks ugly

[nmpappy78]

At $7.00 per share times 150,000,000 shares equals $1 billion+.  I would think that investing $1B to get access to $100b - $200B of resouces would be a steal of a deal.  I think Dale is much smarter than that!!

[metalhead666]

Doesn't matter what you, I or Dale thinks....matters what someone will offer.  If I were Rio I'd offer $3 and say take it or leave it. If WRN says adios then the stock tanks and Rio or someone else can buy up shares on the cheap. I'm not suggesting anything as I don't know squat just that it could play out this way. We're talking what 3-4 billion to buy and build? 

[jclarke042]

I find the non-zero chance Rio turns around at the last minute and offers $400m US small enough as to warrant an irresponsibly large position here relative to my net worth. If we get $3us, I've profited a couple years' worth of salary in the bank. If we reject $3us, I don't need that money yet for a long time. If this goes Dale's way, I tell Mrs. jc that SHE has to sign up the

[Visi0n]

0.5B, 1B, 2B, just a number for Rio. $4, $7, or $15, just a number for us. Anything more than a double from here is good enough. The key is for it to happen quickly so we can move on to other investments. 

[cb2task]

This post has been removed in accordance with Community Policy

[MetalMinded]

You assume too much.  They had enough power, from somewhere, to negotiate terms in the agreement.  My guess is that it is well known within the circle that there are several suitors and who they are. Having several suitors with a proven resource provides negotiating power.  

[Visi0n]

You may be right. If they keep waiting for that top $$$ they may eventually get it. But I hope they don't wait. I'd much rather they take a reasonable offer now so I can deploy my cash elsewhere. Opportunity cost of waiting is immense. Anyone like me who's had serious cash stuck in junior miners since 2012 would appreciate. Watching everything else from tech, crypto, etc... take off

[metalhead666]

It would if there are.  Hope it doesn't drag out though....poke a couple more holes and sign a deal. 

[jclarke042]

I don't see it dragging out. On these interviews Paul always takes the conservative approach - in this case, NOT emphasizing that RIO can pull the trigger (and yes, or bail out) at anytime in the 18 months. From the Crux interview, someone not already familiar might think November 17, 2022 is circled on the calendar as the day for Rio to revisit the investment and decide: buy, bail, or extend.

[Sooner]

Vision - this is exactly right!!!!! It doesn't matter if they CAN afford to pay $1.2B NOW....there is no way that high of a premium would pass thru the RIO board let alone shareholders if we are trading at $400M. I mean that makes no sense.  Most likely is they are working with WRN in an effort to more clearly define what WRN valuation should be and that will drive up market cap and only

[metalhead666]

Out of 3/4 of my WRN....bumped up hedges more....QID, UVXY....don't like this.  AMC up 100%?  Come on. This whole thing is so ripe to crash. Have to protect my capital first and foremost.  Be careful out there! 

[jsladek]

The biggest thing that prevents this is the shareholder rights provision of the agreement which, for the next 12 months, prevents Rio from buying more shares in WRN except under certain conditions (such as to maintain proportionate ownership). This assures that WRN will be able to complete an updated PEA based on the increased resource described in the July 2020 technical report before Rio can