Western Copper and Gold Corp T.WRN

Rio Tinto

[EvenSteven27]

...needs Casino, far more than Newmont needs Casino. Newmont needs Casino to legitimize an area play. But Newmont can walk away from Casino and still survive. Rio cannot. Rio Tinto needs Casino for its very survival in a very important mineral interest. In the next 8 or 9 years, Casino will likely be the biggest project on the Rio roster. It will all become apparent in time. Rio has a clear reason for it's reason in Casino. This is not a test drive and they won't walk.

[EvenSteven27]

Based on my understanding of a few things I've come across, Rio will need to have construction well underway by 2025 and first shipments of ore leaving Skagway to Asia by 2030, preferably earlier. Rio has commitments that need to be met and they have deadlines that need to be met, and Casino is the only project in the world that can meet Rio's immediate demand and stringent needs.

[blueboron99]

Hi Steve,  But what if drilling results at the Casino and Betty properties are good to excellent would that not change matters, in terms of promoting/triggering a bidding war by one/two of the four Majors working the immediate area in the Gold District. I was under the impression that eventually matters in terms of numbers of numbers of Majors producing in the Gold District would downsize

[EvenSteven27]

BB, Good point!  I didn't mean to underscore Newmont. Just wanted to emphasize the real needs of Rio Tinto to secure us. There is already a smelter in Asia needing our ore. Would like to say more but everyone time I go to post a message, a little voice inside tells me it may be wise or timely. It will all become apparent when it is meant to become apparent.

[cb2task]

This post has been removed in accordance with Community Policy

[dfwrgk]

If you dissect and analyze Paul's word-usage from this recent Crux interview, when asked about the reasons for not wanting  Rio or others to buy 19% of the shares in any initial deal, I recall Paul saying, "Then they're buying you at 20 cents on the Dollars."  If we were trading at $1.50 U.S. then, and my math is correc, was he not implying the value of Western Copper

[jclarke042]

IMO, being too literal. All I took from that "20 cents on dollar" comment is if WRN gave up 19.9%, Rio would have defacto control. The 8% investment is big enough to make Rio largest individual shareholder, not big enough to dissuade any other company from entering their own discussions with WRN.

[dfwrgk]

I took t to mean, we were allowing them to buy-in at an under-valued, market not-recognized share price.  He said not 19% because then we'd be allowing them to buy us at 20 cents on the dollar. I've watched the video fiur times and I still interpret it that way. Since he doesn't clearly say, the market will. But he certainly is saying we are undervalued and won't give the

[GardenManman]

if management think share price is undervalued and worry Rio get the cheap shares, why don't mangement buy undervalued assets from market? Actually they just won't lose the control of the board, then they can get more options.

[Sooner]

even if Rio gets up to 20%, they don't lose control of the board. Rio only gets 1 seat...right? How does that control the board???? What in the world is wrong with Rio getting up to 20% if that takes share price up to $3 usd and new floor. Going from 20% to 100% could easily take it from $3 to a multiple!!! Why is that bad...

[GardenManman]

dale + vitton shares seems around 12%, now give Rio one limitation to 8%, if Rio can increase the shares to 20%-30%, then they can do something to Board instead of only one seat, even they do not do something, they just can say no to all the decisions until you all lose patience. So I am neutral to this restrictions decision.

[dfwrgk]

I think I recall him saying, if any larger powerful company such as Rio gets control of 20% of your shares, the potential for other companies entering,  making their own offer is diminished.  He said they did not want the deal to be such a high percent because We would not realize the true value of the company because they're getting it for 20 cent on the dollar, the 8% they were

[dfwrgk]

https://youtu.be/c7TugkCbkgY

[Sooner]

not only that ...in subsequent interview he seemed to imply "fair' value to both Rio and WRN would be something around $1B - which is in line with $6 usd.  Now of course if long term metal prices become clear they will be much higher than what was baked into PEA and/or current field season yields something that materially changes things...all bets are off and he should have stated

[jsladek]

I think what he meant was that at the time of the deal the market cap of WRN relative to the NPV from the PEA is 0.2x.  The final deal will be done at a much higher multiple which will depend upon a lot of other factors, inclduing whether other companies will put in bids. If Rio was allowed to own 19.9% of WRN, it would scare away other bidders.  By limiting Rio's ownership, WRN'