I have no doubt that to get a substantial position they had to pay a fair price based on the known resource base and clearly the new majority owners would be unwilling to make a placement at lower prices as EME is not cash strapped.
This more or less covers them for much of the development of Bigrlyi with any extra required covered by debt funding which will be easily achievable as it will be modest.
I sold all mine into the offer of the Chinese or on market and I maintain a proxy holding thought JRL.
If the price of uranium picks up then there should be some attractive economics remembering that Guandong is an end user so they are here for supply and can probably push the button on the project at lower prices which is a double edged sword if prices stay fairly restrained.
I would assume the price will firm a bit but really it will come down to extensional drilling, more regional exploration on 100% ground and sticking a couple of holes in Macallan.
EME Price at posting:
42.5¢ Sentiment: None Disclosure: Not Held
