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That isn't what SAU's announcement said. It said that BMV was free to propose some combination of cash, shares, royalty and SAU would consider any proposal. But they aren't under any obligation to accept the proposal.
The only way to guarantee acceptance is to pay the full amount in cash
Of course, SAU will have to weigh up the value of any non-cash component of the consideration offer. It may be sufficient, it may not. But, unequivocally, they aren't under any obligation to accept any offer except one that is 100% cash
Both BMV and Southern Gold originally agreed that the deal could comprise a combination cash, shares and maybe royalties.......it’s just a matter of agreeing the combination to total the arbitrators figure.........it shouldn’t take that long to come to a conclusion......
Of course there is the prospect of a deal not being done. If SAU say "we want it all in cash and only cash" (as is their right) and BMV can't or won't pay it all in cash, BMV will be in breach of the agreement and SAU will then be able to sell it to someone else or keep it or whatever.
Of course SAU may take the view that a chunk in cash and a chunk in royalty from BMV (if BMV can't/won't pay it all in cash) is better than hanging onto the asset or trying to sell it to someone else. But they aren't obliged to accept any offer other than the full amount in cash.
Obviously, to date, BMV has not offered to pay the arbitrated price in cash.
Also DYR please read last few RNSs. There is no option of deal not being completed. Worse scenario is BMV has to find all cash to pay them. GLA
People on SAU board not happy as they think we playing hard ball. They don’t think Simon their ceo can negotiate well with BMV. LOL
Looks like investors by nature are pessimist species.
Answering your question dyresearch bmv can’t raise money more than 900k via placings as we are standard listed and not aim. We don’t have assets that allows us to raise millions to pay SAU. We got 20 million funding facility abs we don’t want to blow it on just paying SAU but hoping that money takes us into production. As most of the infrastructure is already there we can get into production very swiftly and cheap too. GLA.
DM - now that was funny!
If a deal doesn't get struck, how do you develop half a mine?
Looks like a last minute game of hard ball and then a deal will be done. It is in everyones interest one way or another to make this work. This is one case where I believe patience will be rewarded .... and then some.
ATB
I've got to say I'm very surprised at the reaction today. I thought some of the newbies and folks who haven't fully researched the share would've dumped on the news. Tells me we have people who understand what we have, and what we could have should a deal with $SAU be achieved.
Always remember that we were never supposed to have SAU's 50%. So if for whatever reason a deal isn't struck, that what how it was always supposed to be. That's what I bought BMV for in the first place.
GLA!
So if these mines are a steal at USD10m for 50% why didn't BMV just pay the cash?
They either couldn't or wouldn't. Maybe they don't have the cash (remember the funding committment is a minimum of USD5m only).
But if these assets are really as attractive as some posters claim here, they sure are acting like they don't have the cash. Why else offer something other than cash on the table (which maximises the BMV situation if the assets will produce a lot of near term gold)
It’s an interesting one this. Odd that they would email a proposal through on deadline day, especially so SAU couldn’t respond as it was Australia Day. It definitely appears intentional.
This puts SAU in a difficult position. If they refuse and opt to sell to someone else, it’s likely they’ll struggle to get much more than than $10m as that’s what their half is valued at. This would cause uproar from shareholders, especially when they saw our and the other companies 2 & 3 year revenues. When they first announced it was up for sale a lot of their shareholders were complaining as these are the only mines they have which are very close to production. Getting $10m for them, when 3 years down the line they could be worth 10x that wouldn’t put their BoD in the best light. They couldn’t retract the sale option now either as it would make it look like they don’t know what they’re doing. It’s as though our BoD are trying to force SAU into accepting terms, rather than negotiating.
I’m not overly concerned about anything here at the moment as I only bought for the 50% interest a few years ago, so nothing has changed on that front. Worst case scenario we are delayed whilst they sell to someone else. In which case we are still better off than we were 12 months ago as we now have funding sorted.
As I say, interesting scenario this and I’m curious as to how it will pan out. It does make a bit of a mockery of the 60 day timescale though.
Very strange, waited till the last moment and then moved the goal posts? Bought in other day at 4.2 bit worried now tbh . Lets hope it gets sorted out.
That rns has made SAU price red!
BMV emailed a letter to SAU with proposal. SAU to consider. The way SAU are wording the RNS today and yesterday make BMV sound very amateurish!
https://hotcopper.com.au/threads/ann-ong-and-kochang-jv-sale-update.5874613/