Sandfire, page-60

From MTRs point of view I think they’re much better off getting taken out IF I have read the terms right. They basically get their 72m shares/options liquidated or exchanged.. then if the buyer wants MTRs stake in Tshukudu exploration they pick up a further let’s call it $15m (would be determined on a number of factors) PLUS it looks like they get a 2% NSR.. on 100% of revenue! (By the looks).

A 2% NSR on 100% rev is equivalent to a 6.6% NSR on the 30% of rev.. this is huge. Assuming margins of 30% they’re better in this camp .. and they don’t have to front up for exploration and can use their cash windfall to explore their tenenments. All upside and no downside from MTRs point of view - if I have interpreted the terms correctly.. and I don’t think any mid cap wants to be handcuffed to a junior..