£2.50 / share works out at about $79/oz in ground. A premium to average selling price over last year or so of about $56/oz. But for that the buyer is getting lowest quartile AISC, so high profitability + comparatively low capital costs, good infrastructure etc + potential to expand the resource in the defined area.
He may be thinking about selling the current project as defined but retaining the wider district separately, which he has suggested more than once could contain a further 7.5m oz gold. That could be worth a fortune!
Have checked out the time involved to exercise the warrants and am told that it may take a month to receive delivery of new shares so I would not expect to see this holding back the share price for now.
I suspect that this is very much a deliberate strategy from MC too - with 4M shares, he stands to lose more than all of us if someone comes in and goes for a hostile takeover at a ridiculous price, say £1. He needs to make sure that he can block this kind of bid until he is ready for it at a decent price. Anything north of £2 is what I am thinking. £2.50 per share would net him £10M. I bet thats the round figure he has got in his head as his return for 10 years hard slog with CNR.
Just need to hope he pulls it off for all our sakes!
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