'CVY has what is called in the investment banking community a "last" or "first" right of refusal.'
really?
do you want to post us a link to that fact?
According to the following fact based evidence CVY have a buy back option.
It says nothing about 'first' or 'last' rights of refusal, which are a totally different concept.
On your claim (which is just made up, right?) Nuinsco can flog the 3% royalty at any time, and CVY then have to pay for it then and there,or they lose it.
That is just plain wrong. CVY has an option to buy back 2% of the 3% up to 2015. And the sale of the NSR by Nuinsco to an 'arms length' party does NOT extinguish that right.
The arms length player is now also subject to CVY's buy back option until 2015.
So I'll ask you again Marxy, why did they buy it for $5.1 million?
Coventry will have the right to buy back 2.0% (net) of the royalty at any time within five years from signing the Agreement by making a cash payment of $2 million or issuing to Nuinsco $2 million worth of Coventry shares (valued at the 30-day volume-weighted average price for the period immediately preceding the payment date).'
'Nuinsco will retain a 3.0% NSR royalty, although Coventry will have the right to buy-back 2.0% (net) of this royalty at any time in the next 5 years by issuing Nuinsco C$2 million worth of shares in Coventry Resources at the prevailing market price.'
CVY Price at posting:
15.5¢ Sentiment: Buy Disclosure: Held
