Re: M&A in industry- Cardinal Resources
in response to
by
posted on
Jun 18, 2020 06:11PM
CUU own 25% Schaft Creek: proven/probable min. reserves/940.8m tonnes = 0.27% copper, 0.19 g/t gold, 0.018% moly and 1.72 g/t silver containing: 5.6b lbs copper, 5.8m ounces gold, 363.5m lbs moly and 51.7m ounces silver; (Recoverable CuEq 0.46%)
"...in 2011 cuu had made application for the power, to build the road, reserved space at the port and could freely report the results of drilling etc. McDonald was buying shares repeadly and Stiffel Nicholas was accumulating in a meaningful way. CUU was free to report on and promote the stock.
Today Teck controls everything and has cancelled all applications. I can't imagine a CEO of a major mining co. buying our share knowing that teck doesn't want that to happen, and can put this project on the shelf for a very long time. Teck will eventually buy our share and sell whatever they want to a paying partner. This puts our right of first offer in a bad light. who wants to end up in the same position as we've been in since making the agreement, and end up with a hostile and uncooperative senior partner..."
chunky, you've articulated very well a concern I've had for some time. I hope that someone can respond to what you posit in a way that puts both our minds at ease.