re: Ann: ANW: AusNiCo Secures a 19.99% Releva... The more I think about it, the less I like it.
As I said above, the project is HUGE - the biggest tin prospect in mainland Australia. Sure, its economics aren't too great at current prices, but the next boom cycle will come.
So why not simply keep our share in Tarango and wait till Hera and Nymagee are up and running and providing us with the cash flow to buy Tarango for our own? Sitting on these shares would not have distracted our management any more than last weeks football results ...
We get less than $ 2 million in not-very-fungible shares out of it - so it wasn't done in order to finance Hera.
As for profiting from moving the project on - as I and others said above, ANW is cash strapped. It is one thing to sell a project to a well financed mid-tier miner who is in a position to get construction going - that's a win-win situation (cf. Alkane + Newmont selling their Orange JV to RRL for a share in RRL; RRL SP improved from 4,20 to 5,60 since the deal was announced)). Selling it to a company with a tiny market cap and only a million cash? Not so great ...
P.S. Anybody knows who the ANW shareholders are? YTG or Glencore don't happen to have a finger in that pie, too?
P.P.S. And I second the statement above: the november 1. offer should have resulted in a YTC PR. Very disgusted that they kept us in the dark and just went ahead with it without shareholder input.
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